Scaling Up Your Family Business – Accounting Strategies For Long-Term Success

Family businesses aren’t quite the same as entrepreneurial ventures, they mean so much more and there is also added pressure to make your family proud. With the added emotional investment and deep ties with your relatives, it can be incredibly hard to know how to scale up the business without losing the values that made the business a success in the first place. We have put together this blog to help you navigate through scaling up your family business.

Maintain family & business values

Your family roots are your unique selling point, so focus on these and ensure everyone within the team is aligned with them. Growing a family business can be unsettling for customers who like the personal touch you have provided over the years. Communicate with them the changes you are making, and assure them that the level of personal service they are accustomed to is not going to change.

Create a clear hierarchy structure

To avoid any operational or financial issues within a business, a clear structure within the organisation is key. This helps to avoid internal politics which can create a negative atmosphere. With clear KPIs in place, everyone within the business will be able to focus on progressing the business forward.

Move forward with Innovation

Change is always hard, but family businesses must learn to adapt and innovate using new technologies and strategies, otherwise, they will be left behind. By innovating you can target new markets and also elaborate on the services you provide to your current customers. Don’t be afraid of moving the business forward, you may be pleasantly surprised.

Hire thoughtfully

The hiring process is key when growing a family business. This may be the first time someone outside the family has been brought into the business, so think about the core values that you desire and hire people based on those. Skills can be taught, but if you hire someone with the wrong personality this can have a devastating effect on your business.

Showcase your value proposition

A value proposition tells potential customers why they should buy products or services from you rather than your competitors – think about what sets you apart from the market. Customers who are loyal to a family business may worry about the lack of personal touch as your business grows, so use your marketing channels to reaffirm your values.

Collaborate with others

Running a business is hard, so don’t try and fly solo. Collaborating with companies that have similar values to you will help you navigate through the hard times. This will also provide you with better opportunities to cater to the needs of your customers, without changing the core workings of your business. A great way to get that competitive advantage, particularly if your company is stuck within a particular geographical location and you need support outside of this.

Get external help

For any business to grow at a steady, maintainable pace it is worth investing in both a business coach and a qualified accountant that understands your core values. A business coach will have all the prior experience of running a business to help guide you in the right direction, and an accountant will ensure that your financial forecasts support the growth of your business. Planning your finances ahead of time is incredibly important when scaling your business, so use the support available to you.

Managing Staff In A Family Business

Family business owners tend to be great business people, and super entrepreneurs, but their managerial skills are often lacking. As your business grows, you will find yourself having to wear more hats and your leadership skills become more and more important. If you notice that some members of your team are not performing optimally, don’t tolerate this sort of behaviour. Address the issues early on while they are small and easy to deal with, otherwise, things will escalate and you will have a larger problem on your hands.

Growing your family business is extremely hard work, but also incredibly rewarding. If you would like to know more about how we can support your family business through this change, evolving in a way that you can be proud of, get in touch with the team at Wright Vigar.