Running a family business

Growth is an essential ingredient to continued business success. While most businesses can achieve growth organically, this can require considerable time and effort. In order to grow sustainably, entrepreneurial businesses must consider all of their market opportunities including seeking out complementary businesses for acquisition, potentially divesting non-core businesses, outsourcing functions to increase cost efficiencies and potentially expanding into the emerging markets. By developing a solid growth strategy for your company KPMG Private Enterprise advisers consider all the possible avenues for growth and can help you achieve new heights.

The need for effective risk management and controls is crucial in an environment of increased scrutiny. It is important to minimize these risks in an entrepreneurial business, not only for the business itself, but also for the family, property holdings and capital. Implementing controls, securing new financing, efficient tax management and optimization can all have a positive impact on the bottom line of your business.

As trusted business advisers, KPMG Private Enterprise member firms help clients manage the risks associated with their business, so that they don’t need to carry the burden alone. When it comes to financing, tax management and implementing controls, KPMG Private Enterprise advisers can help you be proactive and assess your risk areas and put strategies in place to help gain control.

Starting a family business is easy, relatively speaking; sustaining it beyond a couple of generations is the hardest part. It’s often said that the typical family business goes from rags to riches and back to rags in three generations. Better governance of a family business can help improve performance and satisfy the expectations of all family members. Establishing a governance framework that includes a family constitution and code of conduct for family members can help your family deal with changes in the business constructively. It requires your family to think through important scenarios before critical decisions have to be made and find agreement on important family and business goals. Implementing effective governance tools can help set up a family business for success down the road and help sustain the business through generations.

You’ve worked hard to build your business and make it a success. Now, as you look to the future, you want it to remain in good hands. At the same time, you want to maintain your personal wealth and pass it on to future generations.

KPMG Private Enterprise family business advisers can help you develop an estate plan for transferring wealth to your heirs and a succession plan for your business in a manner sensitive to your needs. By thinking about the future today, you can mitigate many of the risks associated with unplanned transactions, including family conflict and high probate and other fees.

Transitioning any business can be a difficult endeavor. Transitioning a family business comes with a unique set of challenges, with the potential for family conflict that may affect personal relationships. Planning ahead can make it a smooth experience for everyone.

KPMG Private Enterprise family business advisers can help you manage the sensitivities that come with transitions and provide confidential advice on the implications of any decisions your family might make. When the time comes, we can also help with either the transaction, or assist your successor take on his or her new role.

People are often at the center of all that we do, and this important element is often one that can cause many obstacles. From developing and retaining both family and non-family talent, to setting clear roles and responsibilities and establishing remuneration and employment policies; these areas require detailed review and attention.

KPMG Private Enterprise family business advisers will help you find the best ways to structure your people focused activities and help you to navigate this complex area of the business.

Technology innovation is shaping the way organizations operate, and getting it right can mean a sustainable advantage over your competition. KPMG Private Enterprise, together with our alliance partners, design, build, and deliver digitally-enabled technology solutions to help you build the right solutions for your business needs. To learn more, visit our Alliances section.