Advivo Newsletter October 2020

Building and managing a successful family business is hard work! Doing this during a pandemic such as COVID-19 is even harder work! There are unique challenges with a family business, particularly when it comes to making tough decisions in difficult times. The current health and economic crises are testing the resilience of businesses, and over the last six months we have seen many family businesses going ok, some are doing it tough and others are diversifying.

Being a family business can be a real strength, as the business can rely on family members and their commitment to the business when help is needed. Family businesses are usually agile and can make big decisions very quickly, which is proving to be a real asset during the current economic climate. Whether you have been in business for one year or many generations, you need to have solid foundations and a clear vision for the future to allow for successful growth or succession.

There are typical patterns to be recognised in family business evolution and we can refer to the sequence of these as the operating cycle of a family business. These businesses generally start with the entrepreneur, a sole owner who makes all the decisions for the business. As the business evolves families tend to pass ownership on to the next generation(s) and then, as the business matures, it becomes larger and more complex; at this point non-family members are often required to supplement the skills and expertise of the family, adding a new paradigm to managing the business. Each stage within a family business comes with its own challenges and with a good team and advisors, most are able to be predicted, planned and managed. Understanding where your business is on its growth journey can help you manage that growth in the best way.

In this month’s newsletter, we focus on ensuring your family business is set up for success and by having the foundations in place, will help avoid some of the most common issues we see when working with family businesses. Building a successful family business is hard work, and it can also be incredibly rewarding. We understand the many challenges that you face as an owner, and we are here to support you.

Last week saw the release of arguably the most important budget in Australia’s history, see our executive summary and the full budget report here if you missed it last week.

Also, in this newsletter, read why marketing is arguably more important than ever in these post-COVID times. There’s an offer of a free marketing brainstorm, so if you’re thinking about how best to get new business and approach new markets this will give you a chance to talk those ideas through.

Next month we will be hosting a Lunch & Learn online event, ‘Accelerating innovation in a new world economy’, and encourage you to join us. This will be held on Wednesday 18^th November 2020 and will focus on how to identify innovative ideas, understanding the market and how to grow your business and develop a culture of innovation in today’s new world economy. If you’re interested in attending, please register here.

Sincerely

Leon Stephan
Managing Partner

Events

Accelerating Innovation for a New World Economy

The Key to a Successful Family Business

Advivo Accountants and Advisors specialise in working with a family business and explain how to strike the right balance.

Click here to find out more.

Ever Thought of Setting up a Board?

Advivo explains why a board is one of the most powerful tools to ensure the longevity of a family business.

Read the full blog here.

Tips for Bringing New Investors into a Family

Advivo shares what to consider when assessing what a family business will need to grow and succeed.

Read more here.

Succession Planning

Advivo explains why succession planning is important and beneficial for your business in the long term.

Read how to properly protect your assets.

Advivo’s Charity of the Month!

Advivo’s commitment to the community includes our monthly charitable donation! Last month we donated to TRACTION. A great charity that provides an opportunity to make a meaningful difference to young people’s lives.

Have your say – HERE, to help us choose a local charity to support and we will announce the winner in next month’s newsletter

Don’t forget if you would like us to include a charity of your choice, just drop us a line at info@advivo.com.au