In most families, members tend to avoid prickly issues, sweep problems under the rug and keep unpalatable secrets from each other, all in an effort to prevent conflict. This may work in a family, but cannot be used in a family business. Proper planning, and transparency, are crucial.
Statistics suggest that a family business has only a one-in-three chance of reaching the second generation, yet few business founders believe that theirs will be the one to fail. The reasons why so many family businesses don’t survive have to do with the ways that family considerations can overwhelm business realities and the consequent lack of focus on the need for business renewal.
This dynamic arises from the unique quality of the family business, in that people from different generations of the same family may share management and ownership of the business.
Not every family member inherits ownership and not every family member works in the business. But those who do, or want to, often make their decisions based on personal rather than business considerations.
The key challenge in planning for the family business is helping the family negotiate the boundary between the world of the family and the world of the business. If family members agree on an approach to cover these areas, the possibility of destructive conflict is diminished. To achieve this, the family can use two overlapping, interrelated, but quite different planning teams.
The first is a council of family members whose tasks are to deal with the business of the family, develop a new generation of family members in the business, regulate the members’ involvement, and align the business with the family’s plans. The council expresses the will of the family in relation to its business.
Denne historien er fra April 16, 2021-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 16, 2021-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
ARC names best dairy producers of the year
The Agricultural Research Council (ARC) recently announced the winners of the 2024 National Master Dairyman Awards at an event hosted by AgriExpo in Stellenbosch, Western Cape.
Lion breeders to give up bone stockpiles?
The Ministry of Forestry, Fisheries and the Environment issued an official notice in mid-November in which it called on lion breeders to voluntarily hand over their lion bone stockpiles to the state as soon as possible.
Thousands of British farmers march on parliament against inheritance tax
Thousands of UK farmers gathered in London, England, on 19 November to demand the government repeal a proposed inheritance tax on agricultural land, which they argued threatened the future of family-run farms (see page 4), Al Jazeera reported.
Avocado frittata with sundried tomatoes, feta and olives
This wholesome, vibrant frittata is perfect for brunch or a light supper. Recipe and photo: The South African Avocado Growers' Association.
Feed, hay, and other costs are up, so it's time to get creative
Breeders and riding schools need to explore innovative ways to generate income in order to ensure their survival, says Dr Mac.
How to make polystyrene seedling trays last longer
While thinking about how to prolong the lifespan of polystyrene seedling trays that are exposed to harsh sunlight, Bill Kerr began to wonder if a coat of paint might offer a solution.
Living the 'culture' in agriculture
Creation Wines has won numerous awards, was ranked fourth in the World’s Best Vineyards in 2023, and more recently won the V d’Or award for the Best Brand Experience. The owners, Carolyn and Jean-Claude Martin, spoke to Glenneis Kriel about how their winery became a top tourism destination.
Time to take a deep breath on the slopes of the Magaliesberg
Around 100km from both Johannesburg and Pretoria in Gauteng and a tad over 40km from Rustenburg in North West, Farmer’s Weekly found a fine retreat on a working farm where couples may kindle their romance.
African penguins could be extinct by 2035 how to save them
Protecting the critically endangered African penguin is good for the environment, other animal species, and the economy, say Lorien Pichegru and Dr Alistair McInnes of Nelson Mandela University, Katrin Ludynia of the University of Cape Town, and Peter Barham of the University of Bristol in the UK.
An urgent need to confront Nassella in SA
South American grass species from the genus Nassella were unwittingly introduced to South Africa over 120 years ago and continue to invade montane veld. As Mike Burgess writes, research-based action is required.
