Passing on skills and wealth

January 2019 - When transitioning business and family wealth to the next generation, it is imperative to also transition the education, training and skills to manage both business and personal wealth.

Often business owners learn lessons throughout their career, as their business goes from a start-up through to maturity.

When a business transitions to the next generation, it is generally a mature business, the time to learn through the formative years of the business has passed, and other opportunities need to be explored.

Formal education provides a sound base for general business and wealth management, however family businesses are unique and require training to match.

Outside of formal means, there are multiple avenues to explore:

1. Communication

Successfully conveying values, and entrepreneurial and business acumen can be the single deciding factor in effectively passing on skills to the next generation.

 2. External on the job training

Encouraging the next generation to explore a career external to the family business, although not a necessity, can often empower them to use the skills and knowledge gained from both roles. Once armed with both internal values and skills, plus on the job external training they have somewhat completed an ‘apprenticeship’ into the family business.

3. External Specialised Training

Cutcher & Neale’s team can provide custom training to the next generation. This program commences with understanding the business, goals and overall strategy and then the delivery of training.

Training sessions encompass a range of topics including director and management roles and responsibilities, basic interpretation of financial statements and also more specific training relevant to the family circumstances, in line with overall goals.

This training can be conducted on or off-site and with or without the presence of current management and other family members.

In our experience, a blend of the three elements above often provide the ideal platform for passing through knowledge and skills to the next generation.

For more advice on how you can transition your business and family wealth to the next generation, feel free to get in touch with one of our advisors.

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Topics: Business, Income, Small to Medium Business, Personal Income

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