Building a business that can last for a long time – When you are running a business, we all want to know that we are able to deliver a business that can last a long time. Long term businesses will need to have a few things in palce for them to have that lead over everyone else that can keep them in good business.
Businesses are not just about the things that they sell but also the people and also the brand. There are many business that last for a few hundred years and many generations of business owners will hold on to the mantle of the business and keep it going for many more.
So what truly allows for a good business model that can let your business go on for many generations and for the brand to be known by many people in many generations?
We look through some of the most successful family businesses and we realize that having a good system in place is what really makes the big difference. Most family businesses will set forth a system that most of them will need to keep in place and such systems need not be hard systems. It can just be things like ensuring that profits are of the utmost importance or to care for your customers.
Some businesses last for many years just because the people in the company care about their staff and staff members will in place take good care of their customers.
The next thing is handing over to the best person in the family to take over the company.
Taking over a business is not easy and for most people, they will not be able to take over a business easily if they do not have what it takes to be a good business person. Instead of making sure that say the eldest will be named the person to take over. One thing is that the best person in the family should always be the one taking over. One with the best business acumen that will allow them to make the best decisions to ensure that the company can give the family a good amount of returns.
When it comes to handing down the business to someone, one should also consider the shareholding. Shareholding should be held closely and not spread out to too many members of the family. In this manner, it will end up being so diluted and you end up having factions within a big family and you will have nothing much for you to be able to own of the company.
Running a family business also means that you will have to take care of the whole family even if it means that you own the business. Profits should always go into a family fund that will reinvest the earnings and pay out some funds for the family.
Family businesses are not easy to run and we ill always need some help if you believe that running a family business is not easy. Consultancy can be found through some of our partners and if you require some help we can speak to you.
Tax work on such businesses are also not that clear cut, so if you are also keen to find out more about the tax implications of handing over businesses, you can get some tax advisory services in Singapore through our partners as well.
We are also partners with bookkeeping services providers in Singapore.
Building a business that can last for a long time