Running a family business sounds like a great idea, right? A family business has the potential to benefit all the family members.![Family business[2]](http://www.accountingmatters.com.au/wp-content/uploads/2015/06/Family-business2-150x150.jpg)
People you can trust, who share the same ideas, with the same work ethic – everyone’s happy. No need to for formalities, official job descriptions, involving outsiders, right?
Well, think again!
If you want to run a successful family business, it has been well documented that, the key is to embrace and implement the following measures:
1. Leave work at work and home at home.
2. Have clearly assigned roles for each family member to avoid feelings of being taken for granted, over-worked or under-utilised.
3. Pay the market rate – remunerate the job and not the person.
4. Develop a strong, capable management structure – don’t confuse ownership or inheritance with management.
5. Have clear, consistent communication – both good and bad news must be shared.
6. Clearly define entry and exit criteria for family members before an event occurs.
7. Develop a succession plan and ensure that it is endorsed by interested parties – a communicated process rather than sudden event.
8. Use outside advisers who can provide unbiased, objective advice – preferably accredited, family business advisers.
9. Hold regular communication sessions and family ‘retreats’ – the best results are those facilitated by a `third party’.
10. Use external advisers, sounding board, mentors and family business forum groups.
For further information, please contact Peter from our office.
