It is estimated that Australia’s Family Operated businesses generate a turnover of $4.3 per annum.
In the main family businesses in Australia are “generationally young” and are dominated by the early-stage entrepreneurs that founded them.
Families are playing with fire if the fail to consider a properly thought-out business succession plan.
The founding generation of family operated businesses will need to learn how to transition the business to the next generation. This is often very hard; it affects them personally so they push it away.
A key to successful transition from generation to generation is to have a clear demarcation to allow for a complete re-think for the future.
The most successful succession planning in family operated businesses starts with the position that each generation needs to figure it out for themselves.
This is often very hard for the founding entrepreneurs; it can end up in losing everything they have fought for if not properly managed.
This is the time when a family business needs to prepare itself formally to transition to the future by way of a new business plan that allows for the new generation to express their vision, ambitions and objectives.
It is recommended to involve an experienced Business Coach or Business Adviser who will add an outside perspective to the process and can ease the emotional feelings of the parties involved in the family business succession planning.