To ensure the future viability, profitability and sustainability of your family business, you need to make sure that you have solid plans in place for the day to day operation as well as for future opportunities for growth and development. Use the following checklist to see how prepared you and your business are for present and future success.
Business Plan – Outline the goals and objectives of your business, ensuring that they align with your family’s goals and plans for the future.
Financial Plan – Summarise your business’s planned budget, cash flow, dividends and opportunities for investment and growth, making sure that the family is aware of the plans and agrees as much as possible.
Business Hierarchy/ Management Plan – Define clearly the management structure of the business, including individual roles and their rights and responsibilities.
Personnel Management Plan/ Human Resources Management – Utilise a solid HR team to improve internal communications, deal with personnel issues objectively, and help to avoid conflicts between staff members as much as possible.
Conflict Resolution Plan – Have a structured set of steps for dealing with internal conflicts, ensuring that family and non-family employees are given the same consideration.
Choosing A Successor – Have a plan in place for assessing the suitability of the next generation, training them for their future role, and outlining what role, if any, you will have after stepping down.
Estate Plan – To ensure that your plans for your business and your family in relation to your business are followed, it is advisable to create an estate plan, a document specifying powers of appointment, power of attorney and a living will, both for legal and taxation purposes.
Seek Professional Consultation – Contact your local family business planning association if you have any further questions or concerns, to ensure that you are doing the best for your business and your family.