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Family businesses form the cornerstone of South Australia's economy, holding a pivotal position in the entrepreneurial landscape of Adelaide and the wider state.
South Australia excels in nurturing thriving family businesses that have achieved global success. These businesses represent a significant portion of South Australia's commercial sector, contributing substantially to the economy and creating employment opportunities for many residents. The rich tapestry of Adelaide's family businesses, from longstanding icons like Coopers Brewery, RM Williams and Haigh's Chocolates to rising stars in diverse sectors, serves as a testament to the entrepreneurial spirit that thrives in South Australia.
However, managing a family business in Adelaide and across South Australia is not without its challenges. Drawing the line between family and business in conversations and decision-making is crucial but often easier said than done. The delicate interplay between familial relationships and daily operations often extends beyond the workplace. The blurring of personal and professional roles can be especially complicated, with parents serving as CEOs while also being 'Mum and Dad'. The stakes are also higher; working for your family business becomes more than a job, it's a legacy. More than profit is on the line - your work affects the family name and future generations. Navigating these unique challenges requires a blend of business acumen, patience, and understanding.
While it may not be suitable for everyone, successfully managing a family business in South Australia can be a profoundly rewarding experience, both on a professional and personal level.
In this latest thinkBIG report, we’ve picked the brains of some of our most experienced advisers to bring you a collection of valuable tips for Adelaide family businesses.
Launching and sustaining a family business in Adelaide presents a unique blend of challenges and opportunities.
The initial stages of establishing a family business in this vibrant South Australian city are pivotal in shaping their future success.
Every step taken during this phase plays a significant role in determining the long-term trajectory and prosperity of these family enterprises. Whether you're just starting out with your Adelaide-based family business or you're a well-established name in the local business community, revisiting the core elements of your business strategy can offer substantial benefits. It can help identify areas for improvement, reaffirm your existing strategy, and ensure that you're well-prepared to navigate the local and global business landscape.
As you chart the course for building your family business in Adelaide, remember that the foundation you lay today will shape your business's future. Clear vision, meticulous planning, and an understanding of the unique challenges and opportunities presented by the Adelaide business environment will be key to your success.
Want to learn more about running a family business in Adelaide?
Download our thinkBIG report here >
Brad Loftus
"Adelaide's vibrant and diverse business community provides the perfect backdrop for family businesses to thrive, and with the right strategy, your family business can become a success story that leaves a lasting impact on the city's business landscape."
For family businesses who put down firm roots in Adelaide, growth can sometimes be a double-edged sword. Adelaide is in many ways unique amongst Australian capital cities; family businesses who find themselves on the path to rapid expansion can be caught off guard.
Some businesses see the hard work and dedication they've poured into delivering top-quality products and services yield unexpected success, quickly outstripping their initial capacity to meet growing demand. Others may be keen to stretch outside Adelaide or even South Australia.
These entrepreneurs view growth as an inspiring force, propelling them to seek broader horizons and more significant opportunities, sometimes at the expense of establishing robust foundations for expansion.
Whether your family business is experiencing unforeseen organic growth or you're driven to make your mark on a broader audience, it's essential to stay grounded. Amidst this whirlwind of opportunities, remember that a dash of business acumen can take you a long way, particularly in a city where grant opportunities can further fuel your dreams of sustainable and responsible growth.
Rebecca Barnes
"Whether your family business is experiencing unforeseen organic growth or you're driven to make your mark on a broader audience, it's essential to stay grounded."
Managing an Adelaide-based business, especially a family-owned one, can easily consume your daily life.
Juggling customer orders, navigating employee (and family!) dynamics while grappling with endless administrative tasks can leave you drained by day's end, making it challenging to consider anything beyond the daily grind.
Some things are more important than others - a few of the things you MUST pay attention to include:
Superannuation
Superannuation can be a very useful investment vehicle. For example, using a Self-Managed Super Fund (SMSF) to hold your family business premises lets you pay tax-deductible rent into your own retirement fund.
Insurance
No matter how old your Adelaide family business is, it's important to protect it with insurance. Reach out to an adviser to explore life insurance and buy/sell agreements for your family enterprise. This can help you navigate complicated scenarios and ensure the long-term stability of your family business.
Division 7A loans
Division 7a refers to provisions for family business owners to draw money from your company without paying tax on the withdrawal. Tax legislation can be tricky to navigate alone - don't fall into the trap of treating your family business as your personal piggy bank. Make sure to speak to your accountant before taking out any money, to avoid any adverse tax implications.
Preparing for death or divorce Contemplating the death of a loved one or a future divorce is never easy. Unfortunately, these things do happen and failing to prepare can leave your family business exposed - adding to the emotional toll. Adelaide business owners can protect their family legacy through stipulations such as a BuySell Agreement.
Ready to secure your family business legacy?
Matthew Gordge
"Devoting time to comprehend these intricacies and establishing sound practices to incorporate these aspects into your family business strategy, and seeking advice where needed, can contribute to your long-term success and legacy."
In Adelaide, family businesses reaching a critical juncture must decide between passing on the business to the next generation or selling it for retirement.
Succession planning starts with clear communication of goals, whether it's selling the business, transitioning it to family members, or another path. Transparent discussions are key, as seen in a successful case where a father's open conversation with his sons led to a smooth business sale and a comfortable retirement.
When planning for succession, it's essential to consider the broader family legacy, not just financial aspects. Engaging a trusted adviser can aid in addressing these questions and mediating family discussions, ensuring all family members are considered to prevent disputes. Strategic planning not only safeguards your family's financial interests but also preserves relationships and helps establish a lasting legacy.
Are you planning to join the ranks of Adelaide's historic family businesses?
David McArthur
"Strategic planning not only safeguards your family's financial interests but also preserves relationships and helps establish a lasting legacy."
We can help you navigate the complexities of establishing, operating, growing and preserving your family business and legacy.
At RSM, we have more than 100 years of experience working closely with family businesses. We offer professional advice, business solutions and ideas tailored to your needs - built on a relationship of trust and mutual understanding.
Christian Van Niekerk
"As an accredited Family Business Advisor, I've worked with thriving Adelaide family businesses, observing the unique challenges of blending business and family dynamics. Successful family businesses, crucial to the broader economy, navigate their lifecycle, uphold values, keep business talk separate, and seek the right advisors."
