Advivo Partner, Chris Morris, outlines what goes into creating a successful family business.
I spent nearly 13 years working in my own family business alongside my father, mother, brother, grandfather, stepsister, stepmother, and even a cousin who we only discovered a couple of years before he joined us. This unique experience gave me valuable insight into both the opportunities and complexities that come with running – and simply working in – a family business.
Considering that almost 70% of Australian businesses are family-owned, it’s clear that family businesses play a vital role in our economy. They also bring with them a unique set of advantages, including:
The Benefits of Family Businesses
- Stronger culture through shared values
A clear set of values is the foundation of every successful business. Family-owned businesses often thrive in this area because their culture grows from deeply embedded values passed down through generations.
- High levels of commitment
Family members are naturally invested in the long-term success of the business. This personal connection often translates into stronger resilience and determination through challenges.
- Better employee relationships
Many family businesses extend the sense of family to their staff. Employees are often treated with care, consideration, and support—something that can lead to increased loyalty and stronger team cohesion.
- Knowledge that stays in the family
When businesses pass through multiple generations, knowledge and experience aren’t lost when leadership changes. This legacy effect allows family businesses to learn from the past and avoid repeating mistakes.
The Challenges Families Face
Despite these benefits, family businesses also face unique challenges. Hierarchies, often influenced by family norms, can blur lines of authority and decision-making. Unlike traditional corporate structures, family dynamics can easily spill into business life and vice versa.
Based on my experience, these are the most effective ways to strengthen both productivity and relationships within a family-run business:
Separate Home from Work
Workplace issues can easily carry over into the home—and family tensions can just as easily spill into the business. Both situations can create lasting damage to relationships if not managed carefully. Establishing clear boundaries is essential for keeping both environments healthy.
Create Role Clarity
Clarity of roles is at the heart of strong governance. In family businesses, people often arrive with preconceived ideas about where they fit in the hierarchy due to family roles. This can cause confusion and tension if not addressed.
Every family member wears multiple “hats”—within the family, within the business, and beyond. The key is recognising which role you’re playing at any given time. When everyone understands their responsibilities, decisions become clearer and conflicts easier to navigate.
Define Expectations and Responsibilities
With role clarity comes defined expectations. Every employee—family or not—wants to know:
- “What are your expectations of me?”
- “How will I be measured against those expectations?”
- “What does my future within the organisation look like?”
Taking the time to clearly articulate and document answers to these questions ensures fairness and accountability. Importantly, family members in the business should be treated the same as any other employee—no special treatment, no favouritism.
When expectations are clear and consistent, businesses can avoid many of the common pitfalls that arise in family-owned enterprises. And when challenges do surface, returning to these agreed roles and responsibilities provides a solid framework for resolving them.
Building for the Future
Family businesses can represent both a career and a lifetime commitment. For example, while Millennials average just three years in a role, many working in family businesses find themselves tied in for the long haul. With the right foundations—values, clarity, and fairness—this long-term involvement can be a powerful advantage.
At Advivo, we understand the unique dynamics of family businesses because we’ve lived them too. Our experienced accountants and business advisors in Brisbane take a hands-on approach to help build sustainable businesses and lasting family legacies.
Contact our team on 07 3226 1800 or visit our Contact Page to start the conversation.
