Times are changing, technology is moving fast, industries are being disrupted. In Australia we are looking for a real boost in Entrepreneurship and innovation.
We are also starting to see a new generation who are not interested in being involved in their family business, they want to do something new.
Could this see a decline in family businesses?
Or
Could this see an expansion in the use of “family brand?”
What is a family brand?
A family brand is a main umbrella attached to the family name that has a number of different businesses under the umbrella.
This encourages entrepreneurship in the next generation and allows them to follow their dream and although not in the original family business, they feel connected as they come under the family umbrella.
To create a family brand there are a few things to consider,
- Your family values;
- Funding the new businesses;
- The tax structure.
Today, we will be looking at your family values.
To ensure you have a strong family brand it is important to discuss as a family the values you believe your name stands for. The strength is in ensuring all businesses under the family brand have the same values and the same culture. By investing time upfront in working on your family values it provides the next generation with a head start when they start their new venture.
Often family businesses run their business based on their family values but have never sat down and discussed what they are and formally documented them. But when you are looking to expand your brand into new businesses, it is not only important they are articulated but also important the family members feel they have a say in their creation. They will only run their businesses by the same values, if they believe in them. The next generation also needs to understand their role and responsibility in carrying the family brand as an action in one business will impact the reputation in another.
If you would like to understand the concept of “family brand” further or you would like to know more about developing your family values, please don’t hesitate to contact me on Kirsten.taylor-martin@au.gt.com