How Am I Really Going in My Family Business?

How Am I Really Going in My Family Business?
December 14, 2017 Toohey Reid

Running a family business can be tough; there’s no doubt about it. Not only do you need to consider all the logistics of running your own company, but you also need to balance this with personal connections. What if you’re directing your business down a path that you think is destined for fruition when in reality you’re making decisions without seeing all of the information? This is where an accountant who is also an impartial business adviser can prove invaluable.

Unable to see the big picture

Are you a part of a large family business that has varying interests and competing pressures on direction? Chances are you have a lot of stress on your shoulders. You may have multiple businesses, properties and investments. You may be focusing on growing enterprises, asset protection and tax minimisation, but other important aspects of your business may be slipping through the cracks. And all of these components lead to complicated legal structures which are necessary for asset protection and tax reasons, but increasingly difficult to understand. Conflicting or opaque business elements can make it hard to grasp the real overall performance of the enterprise or family group and what it’s really worth.

What’s in jeopardy?

So what happens if you continue down this path of uncertainty, with none of your business dots connecting? If you are unable to decipher the knowledge you need to make clear business strategies, this could affect your retirement plans and succession plans with family members. Not to mention, cause a great deal of unnecessary stress and strain on family ties.

How to remove uncertainty

The good news is, you can strengthen your family business and remove future uncertainty by seeking outside help. Here at Toohey Reid, we find that by asking three simple questions, we can assist you in getting your business back on track and eliminating the smoke and mirrors. What are these magic questions?

What is your business worth?
How is your group performing?
Where did the cash go?

If you’re thinking; I can just ask myself those three questions, think again! Really detailing the nooks and crannies of your business with an unbiased third party is essential for family businesses. It’s so easy to get caught up in familial ties, and as much as you tell yourself that you won’t let this cloud your judgement, it’s difficult to separate business and personal issues. But Toohey Reid can help you do this.

Why the Toohey method works

We have developed a comprehensive live reporting tool that eliminates all the legal structures, consolidates all the information and provides a high-level snapshot of your business’ overall position on a regular basis. We are able to provide simplified overall reporting that can incorporate financial and key non-financial data into one report. This results in informed decision making and peace of mind.

These tools, incorporated with a monthly or quarterly “Board” meeting, leads to increased focus and accountability. Here at Toohey Reid, we don’t just talk about making a difference; we provide you with the tools to do it. Contact us today for a business consultation!