Goals & Challenges of Family Businesses
For many family businesses, growth does result in profits. This also means taking more risks and making more investments. Managing risks and investments may cost time and money before its returns can be realised. Cash management and cost control is therefore a key element for a healthy growth. And businesses also need to take into account intensifying competition and the need to stay relevant and differentiated.
As a business grows, existing employees including family members working in the family business will have to delegate more responsibility and focus on the strategic and long term plans rather than the daily operational tasks. The business will need to consider if the capabilities of existing employees fall short of what a growing business may requires. Would the business owner have the infrastructure and working environment that can attract the best talent for the job?
The respondents’ top 5 personal and business goals to drive growth are consistent with the top 5 short term challenges observed in the survey. Professionalising the business means being able to deal with the shortage of appropriate skill sets and setting a working environment where performance matters more than personal background. Once a company has aligned its values and culture where merit is based on performance, and rewards commensurate with achievements, then the ability to attract and retain high quality talent increases. With good talent, the business is able to diversify, move into higher value add areas and pursue better branding. This essentially helps the business to be competitive and set the pace for others to follow.
（To Be Continued）