Tips for Growing a Family Business, According to XO Accounting
XO Accounting, the top Xero accountant Melbourne-wide, shares their best expert tips for growing a family business.
MELBOURNE, Australia, March 7, 2022 (Newswire.com) - Managing a family business can be extremely rewarding, but it doesn't come without its challenges. Family dynamics can be tricky to navigate and conflicting views and opinions may be difficult to reconcile. Leading Xero accountant XO Accounting shares their expert advice for continuing to grow a family business while avoiding conflict as much as possible.
According to XO Accounting, having a solid plan for a family business is absolutely essential. While financial planning is wise for any business owner, a long-term plan can often be the reason a family business stays afloat through multiple generations. Experts recommend prioritising the interests of customers and employees to ensure a positive business culture. It is also advisable to account for market uncertainties that could arise in the future. XO Accounting reminds family business owners that setting quarterly or short-term goals is just as important as a plan that looks further ahead into the future.
On top of financial planning, XO Accounting urges business owners to set in stone a comprehensive business management plan. This includes agreeing on business ownership structure, management control and operational oversight, hiring policies for family members and compensation plans for family members active in the business. This plan will be the key to managing performance and avoiding conflicts of interest. XO Accounting also suggests including a succession plan in the overall business management plan; this will determine who the company will be led by and who it will be left to in the future. A succession plan should clearly define roles held by family members, outline a governance system, set standards for business ethics and company culture, list the procedures for productive conflict resolution, and put a focus on long-term goals for the next generations.
XO Accounting warns that the worst thing a family business can do is assume that all family members will share the same set of values and agree on all business decisions. Having plans in place can help to avoid serious conflict and set the business up for long-term success. For more expert business advice or resident director services, contact XO Accounting today.
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Source: XO Accounting