Winning the family business game
Family businesses are the largest sector of the Australian economy and employ over half of Australia’s workforce. Over two thirds of the two million businesses in Australia are family owned with an estimated wealth of approximately $4.3 trillion.
Recent research1 found that the median age of family business owners is 58 and that almost 81% of these owners plan to retire in the next 10 years. 50% of family business owners plan to sell their businesses, however only 24% of family business owners have documented succession plans.
Further research2 found that 80.7% of family businesses do not have succession plans for the CEO and that 28.8% of these CEOs plan to pass on the business to the next generation.
Family businesses are unique in that they are required to balance the issues of family, ownership and business and they enjoy distinct potential competitive advantages over their non-family counterparts. These include more agility and flexibility, higher ownership concentration and the ability to strategically focus on niche markets. Some of the many challenges family businesses face include the struggle in respect of work / life balance, the interaction of family and emotional issues versus business issues, the balancing of assumptions and expectations of older generation members within the business, developing professional management and control systems and the education and motivation of the next generation moving into the family business. The demands of a very competitive business and the expectation of family business owners create unique challenges and opportunities for family businesses.
Fotini Kypraios[link to website], is an accredited Family Business Advisor. Fotini, together with other accredited family business advisors is member of Family Business Outcomes (‘FBO’) that assists family businesses in addressing their needs. FBO is hosting an information session, which will address the following:
- Working with parents, spouses and the next generation
- Building a strong business for the future or for sale
- Balancing the demands of work and family life
- Planning for succession and retirement
- The AGES model for building a strong and successful family business
The information session will be held on 6 May 2010 at Level 13, 15 William Street, Melbourne. The invitation is attached.
If you are interested in attending this session, please complete the attached registration form and submit as directed. If you have any questions in relation to this event, please contact Fotini directly on +613 8540 0272.
1. The MGI Boyd 2006 Family and Private Business Survey
2. The FBA-KPMG Bond University 2009 Family Business Survey
Author: Fotini Kypraios