analytics
  Contact us

How to Run a Successful Family Business

Family businesses make up a major proportion of new businesses in Australia every year. There are many benefits to going into business with family, including more support from established relationships, access to family funding and growing wealth within the family with a common goal. However, family businesses also come with some unique challenges.

As a family business ourselves at Transact Group, this is a topic close to our heart. In this article, we share 7 tips that will help you establish and run a successful family business.

 

1. Make sure the relationship comes first

Before all else, you need to establish clear boundaries between personal and business matters. Limit business discussions outside of the office, or at least ensure that your business talk is not encroaching on the enjoyment of others during family time.

 

2. Have defined roles based on your strengths

Different family members will have different strengths and weaknesses, and this can be used to both benefit the business and increase job satisfaction. Clearly define each role with KPIs and set responsibilities, and allocate tasks based on the role description and individual strengths.

 

3. Seek external advice

The decision-making process within a family business can sometimes become to closed, causing the business to stagnate. Seek external advice regularly, either from a board of advisors, coach or specialised contractor, and avoid the tendency to keep business issues within the family.

 

4. Use clear contracts

Every aspect of the business, from employment to finances, should be clearly stated in a contract or formal business plan. Not only does this act to minimise conflicts, but can also be used to settle legal disputes should they arise down the track.

 

5. Address each family members’ needs and personal goals

Each person within the family business will have different goals for the future, and a clear path to reach those goals within the business can increase motivation and encourage long-term commitment.

 

6. Require outside experience first

Requiring younger family members to get a taste of the outside world before joining the family business is a great way to future-proof the business. At least three to five years of experience in an unrelated industry gives the new employees an understanding of how the business world works outside of the family bubble.

 

7. Develop a succession plan

A succession plan details how the business will be handed down to the next generation, and should be written by a lawyer or succession specialist. It is an important tool to avoid conflict within the business, as well as act as a roadmap for investors or financiers in future.

 

If you are thinking about purchasing a business with family members, contact Transact Business Group to start the planning process and look into successful businesses already on the market. As a family business ourselves, we are passionate about helping others have the same success.

I have made use of the services of James Taylor to sell two businesses in the last few years. Throughout the process I have found James to be professional, knowledgeable and thorough. James was able to find high quality prospective purchasers who were financially capable and ready to purchase my businesses. James has a vast network of contacts and maintains regular communications and updates throughout the sale process. James was able to use his wealth of experience and professional network to guide me through to a successful sale for both businesses. I have already recommended James to several of my business colleagues and would not hesitate to do so again in the future.

The business was in a growth stage, so that meant there were hundreds of enquiries. James’ seasoned experience was demonstrated in the way he methodically worked through the enquirers weeding out the time wasters, and qualifying the real potential candidates. The process of selling this business was drawn out on the back of the recent tougher constraints on lending from the banks. As such, I believe James spent a lot more time on the sale than his fee had allowed for. Yet he did this with unwavering enthusiasm and continued head strong into meeting after meeting with potential clients, all in after business-hours... James stood by and saw it to the end. Many times when buyers become a little bewildered  or disillusioned, James’ keen advice to the other side kept them on track. I could not recommend his service any more, it really is a cut above the rest. 

I was very impressed with our Business Broker, James Taylor. James was very professional in all his dealings and guided me smoothly right through the entire buying and franchisor approval process. He regularly communicated with me and allowed me to draw on his excellent knowledge of small business and franchising. I would recommend him to others who are considering buying or selling a franchised business.

James helped to sell our business and was a pleasure to do business with. From his initial consultation he provided a professional service to the highest quality. His personal knowledge of the Franchise Systems helped to find and guide our buyer through the whole process. I fully recommend James to anyone looking to buy or sell a business.

Toby has provided tremendous support throughout the whole purchasing process, and exceeded all my expectations as a buyer. He has gone out of his way to facilitate between multiple parties and move things along, and the purchase could not have been completed without him and the team from Transact.

Throughout all stages of our business acquisition Garry was extremely professional and ensured consistent communication between all parties involved.  Not only was he very responsible in all of our dealings, but he also offered broad advice, guidance and the support we were looking for based on his knowledge and experience across a number of industries. Throughout the process Garry was a great sounding board for us and always available at any time.  Without hesitation, we would recommend Garry and the Team at Transact Business Sales to any future client and are more than happy for any potential clients to get in contact with us directly for any additional feedback on Garry.