Running a family-owned business is complex. Conflict between family members, differing viewpoints on growth, and poor communication are some of the factors that can impact the success of a business.
So how do you find a balance between meeting the needs of your business and the expectations of family members?
Five key issues for family business owners
Shared vision
-
Do we all share the same vision for the future of our business?
-
How can we make sure that everyone in our family is on the same page and working towards the same goals?
Future readiness
-
The world is changing quickly.
-
Do we have the agility and capabilities we need to keep our business future-ready?
Family harmony
-
Achieving family harmony is important.
-
How can we separate business decisions from family decisions and set clear expectations for what we are accountable for — individually and collectively?
Next-gen aspirations
-
How well are we engaging the next generation in our plans for transitioning the ownership and management of our business successfully?
-
What are the rising generation’s aspirations, and how might we integrate their goals into our business?
Family wealth
-
What are the options for diversifying our family’s assets?
-
What can we do to make sure that we have an effective wealth strategy for the prosperity of generations to come?
The Sages: A family business success story
As your family business continues to evolve, understanding how to manage the sustainable growth of the business alongside the wellbeing of the family is crucial.
The Sages family business story is a fictional account of how entrepreneur Thomas Sage established his family-run grocery shop in the 1950s and grew the business into a major global retail group.
Learn about the various challenges that the family members faced, including ownership succession, governance and family constitution, growth financing, international expansion, wealth management and philanthropy and the need to develop a shareholders’ agreement.
How can your family business benefit from the Sages’ experience?
When major decisions about the company and its structure were required, the Sages engaged consultants who understood the dynamics and common challenges of running a successful family business.
KPMG's Private Enterprise Family Business advisers can work directly with you and your family members to facilitate a customised workshop – or a series of workshops – on the challenges you are facing in the operation of your family-owned business. We can also host roundtable discussions with other business families to share your experiences, discuss common challenges and learn from your peers.
Understanding the Sages family story can help you recognise the challenges, strengths and opportunities that exist in your own family business story.
Sages family business case studies: Start the conversation
Read more about the opportunities and challenges the Sages have faced – and the strategies they’ve developed – as their business and their family has grown.
The Sages family identified three key issues they needed to address:
- How to develop leaders to guide the family business in the years to come.
- How to build a formal board of directors.
- How to create a new governance model with an external CEO.
The Sages family business story can help you navigate many of the pressing issues facing business families today. These three case studies are part of an additional 17 scenarios that examine the full complexity of the situations the Sages family has faced in relation to growth, transition, people, risk, governance and wealth.
These scenarios are an excellent basis for opening up conversations for everyone to learn, share experiences and discuss new approaches openly.
Contact KPMG
Interested in a customised workshop for your family business? Or would like to join a round table discussion with other business families? Contact a KPMG Private Enterprise Family Business adviser near you.
