CPA Bulletin

32 CPA Bulletin > May 2023 www.cpa.uk.net We know for a fact that things such as: your brother aka ‘Golden Balls’ getting away with blue murder, your dad being an utter control-freak and deciding he’ll stick around into his 90s, and your cousin sitting with his feet on the desk waiting for his new car to arrive, are more common than you’d think. Let me reconfirm - these things aren’t just about being blood relatives, it’s about how we relate, communicate, and set and agree expectations. It’s also about how we deal with challenges and issues - if we even dare to try. To summarise: 1. Just because you have done things a certain way doesn’t mean it’s still the best way. 2. Not everyone thinks and feels the same way you do - fact. 3. Most businesses evolve - step away from the business to work on it from time to time. 4. Discussing and agreeing expectations is critical for everyone. 5. Everything is, has, and will, continue to change (you getting this point yet?). What should we be doing? A question I get asked a lot by clients is: ‘what is best practice for [insert a Family Charter, succession planning, strategy, governance etc]?’. So let me share with you the secret answer for this… there is no such thing! Every privately-owned business is the master of their destiny - good, bad and indifferent. Your business is yours and, providing you operate within the law, you can choose to run it however you wish. BUT, and it’s a BIG OL’ BUT… be deliberate about how you run it. That isn’t negotiable if you want to build something of value - however you determine ‘value’. So, to begin in being deliberate in how you run your business, let’s start with a simple but vital question: ‘what is the purpose of your business?’ - and in considering this, try and keep you answer as short as possible, one word if you can! For some people this may be ‘enable lifestyle’, for others it may be ‘make a difference’, ‘innovate’ or ‘create an impact’. There is no benchmark, no best practice, no right or wrong answer - just make sure you have a clear answer that you’re happy with. Then perhaps consider some further questions: • Why did you start the business in the first place? Example answers are: freedom, opportunity, service, etc. • Why is the business important to you, and to others? Example answers may be: excitement, challenge, future, stability, etc. • What does the business mean to you personally? Example answers could be: focus, legacy, creating an impact, etc. • What do you want your business to be known for? This is your reputation and brand - all of which you can influence. Example answers are: excellence, service, available, supportive, dynamic, innovation, reliability, consistency, etc. • What does “value” mean to you? Example answers - and you can have 3 main ones, but in priority order - might be: growth, freedom, talent, people, profit, assets, knowledge, research. • What impact do you want the business to have on: the world, your community, your workforce, your suppliers, your family…? In our family business, my great grandfather would probably have described the purpose as something like ‘be a beacon’, to be a ‘shining example to our industry ‘- often being ahead of the competition in terms of processes. The problemwas, it was never explicitly laid out and adopted by others – on the Board, on the shop-floor, or by family. The succeeding three generations (and all that came with them) had - at best - their own personal versions of a purpose, and at worst had no clue at all. Either way, nothing was discussed or agreed. What happened, therefore, was a misalignment that worsened over time. Imagine a map without a clear destination - then telling everyone to meet up, but without knowing where, when, or how. It would be utter chaos, very frustrating and a waste of everyone’s time and energy. This is one of THE biggest issues with family and owner-managed businesses. To summarise: 1. You are the master of your destiny and business - get deliberate about it. 2. Know WHY you’re running your business (if necessary, get someone to help you work it out). 3. Show everyone where the pin the map is - don’t risk the madness or lost souls and confusion. 4. Review and repeat step 2 regularly! It’s too important to leave to chance. 5. Everything is, has, and will, continue to change - you really do have no choice over this. When s*** happens (And it will!) In varying degrees and times, good, bad and ugly things will happen at home, at work, with customers, with health, with your kids, with the dogs... this is a fact. In a family or owner-managed business, we have all the usual fun of running a business (which I’ve not touched on at all) multiplied by the joys of family, relationships, agendas, issues and so on - or to put it another way, for us: it’s BROWN-STUFF SQUARED! That being said, I can tell you now that my favourite place in the world is to be is within a family or owner-managed business - tackling the everyday crazy that goes on. If you’re aligned with a clear pin in the map, there is nothing better than heading towards it, TOGETHER - plus when that rubbish GUEST ARTICLE: 3