23 / 92
MAY 2012 | HIRE
AND
RENTAL
NEWS
| 23
INDUSTRY IN FOCUS
Written by Family Business Australia.
Family owned businesses are the
foundation of the Australian economy, yet
they are not like other businesses largely
because their principals and many of their
employees also share a family relationship.
This overlap of family and business inter-
ests can create special issues
unique to the family
business environment, so
what processes can they apply
to themselves to ensure they
preserve their business AND
their familial relationships?
Here are the top 10 tips:
• Leave work at work and home at home;
particularly hard in the real estate
industry where working hours are so
varied, but the principle is to enjoy time
out when talking business is simply not
allowed.
• Decide whether the family OR the
business takes precedence in the family’s
value system - this rule must be crystal
10 tips to surviving a family business
clear.
• Have clearly defined roles for each family
member to avoid feelings of being taken
for granted, over-worked or under-paid.
• Once a clear position description has
been made, it is easier to benchmark
the role and pay the market rate -
remunerate the job and not the person.
• Strong, capable management structure
- don’t confuse ownership or inheritance
with management, one does not give a
right to the other.
• Clear, consistent communication - both
good and bad news must be shared and
if the conversation is too hard, call in a
facilitator who can keep the emotion out
of the discussion. Access a list of properly
trained facilitators through FBA and then
choose one who suits your family.
• Manage transitions proactively - entry
and exit criteria for family members must
be clear before an event occurs. Once
emotion is involved, the decision tends to
end up the law courts.
• A succession plan must be developed
and ratified by interested parties - a
communicated process rather than
sudden event. Again, seek outside
help for an independent view.
• Always use outside advisers who
can provide unbiased, objective
advice - preferably accredited,
family business advisers.
• Hold regular communication sessions and
family ‘retreats’ - best results are those
facilitated by a `third party’.
Family Business Australia, as the peak
body for families in business, is committed
to fostering the success and sustainability of
all Australian families in business. For more
information relevant to family businesses,
go to www.fambiz.org.au
HR
“...don’t confuse ownership or inheritance
with management, one does not give a
right to the other.”