Every business organisation has a unique set of challenges and problems. The family business is no different. Many of these problems exist in corporate business environments, but they can be exaggerated in a family-controlled business.
Family businesses go through various stages of growth and development over time. Many of these challenges will only occur once the second and subsequent generations enter the business. Common challenges identified in family businesses include lack of sufficient succession planning and exit strategies, identification of new leadership and communication with the next generation.
In order to ensure that a sustainable family business is created it is important that:
At PwC we have a significant focus on family-owned businesses and have developed an approach to help family businesses formalise building blocks for the future and implement proper communication mechanisms with the various stakeholders.