How to take your family business to the next level

SMEs are often described as the backbone of Australia, and a large subset of SMEs are family-owned and run. But just because a first-generation family business has grown and thrived, that doesn’t mean it will continue to prosper when a second generation takes over. Successfully making that transition requires strategic planning.

Many family-owned companies fail when they let family conflict and emotion drive change, rather than relying on proven strategies. And it’s never too early to put those strategies in place. It’s important to note that succession is not a singular event, but a process of transitioning the family business to its next stage of development.

How to transition business decision making to the next generation



Two key transitions need to take place. The first is handing over the most senior decision-making roles to the next generation, and the second is assigning ownership and control of the business.

At Icon Visual Marketing, we’ve worked with many family businesses over many years, and here are a few key things we’ve learned that all family businesses can benefit from following.

Start early

 When it comes to transitioning the family business from one generation to the next, the sooner you start planning, the better. Continuity and planning are critical for achieving a long-term legacy. A very well thought out strategic plan provides much-needed stability to the family business management without any challenges and tensions during the passing of the baton to the next generation of family members.

A strong and successful continuity plan must identify the challenges that will be faced by the siblings, cousins, and large groups of business owners and shareholders.

Structures need to be put in place to ensure strong leadership, effective decision-making, and the protection of family wealth and family relationships. Without a succession plan, the business will have a high structural risk and family relationships could be left in tatters.

An effective plan should consider the views and core needs of individual family members, whether they are active in the business or not, that sets clear expectations on family members, and which is in the best interests of the family and the business.

Succession and succession planning also benefits from having a family governance structure in place. So having a plan, having governance frameworks for family and the business, and having time to prepare the next generation for the role of leadership.

How to market your family business



Research published by Harvard Business Review and Forbes shows that customers prefer products and services from family-owned businesses and are more likely to buy from them than other businesses. This means that family businesses have a unique opportunity to leverage their special status in their marketing activities. This applies at any time during the succession from one generation to another, but it’s particularly important when there is internal change.

Family businesses can build on this trust in their marketing and through their customer interactions to differentiate themselves from corporate competitors. Australian companies like Victoria-based dairy food company Bulla actively promote their family-owned status.

The Bulla company website proudly tells the story of the company’s founding in 1910 by Thomas Sloan, who later partnered with his brother in law and other family members to launch Bulla nationally. Today, on its website the company proudly honours its status as a leading Australian family business.

“Bulla remains one of Australia’s largest family-owned dairy producers. The Sloans, Anderson and Downeys all still operate the business in harmony today. Our family craft the best of Australian Dairy to share with the world. Our vision is to continue to spread joy through supplying our tasty Bulla dairy products across Australia, and remain well-loved by true Aussie families for generations to come.”

It’s also important to include branding and marketing strategy as part of general business planning and continuity, including succession planning.

Other resources that can help

The free Introductory Guide to Family Business Succession Planning is available on both the Family Business Australia and the Australian Small Business and Family Enterprise Ombudsman websites.

How Icon Visual Marketing can help

Icon has a long track record of working with family businesses in Greater Western Sydney and beyond, with many, many successful campaigns over our 18 years in business.

At Icon, we start every working relationship with a strategic marketing workshop that is designed to get to the very heart of your business. The whole process aims to clearly establish the unique position your business has in the market and how you can best leverage this for great marketing results. 

Get in touch with us today by phoning 1300 138 984 or via our website.