How to make sure your family business is here for the next generation.
During our Cumbria Family Business Awards Story #CFBA2018 we’ve met Cumbrian family businesses going back as far as seven generations, but how do businesses protect themselves for the long term? Graham and Chris Lamont are the father and son team of Lamont Pridmore who talked us through things…
In a family business, it can be difficult to discuss salaries, pensions and other forms of remuneration for family members. Yet, open and honest conversations about earning expectations and financial security are vital to protecting the business and the family wealth. – Chris Lamont (second generation family business owner at Lamont Pridmore)
Identifying and recording what’s important to you, the family business and other family members in terms of your wealth goals is vital. Only by discussing these expectations, can you then develop a strategy to ensure these goals are achievable and ensure the business can deliver the desired lifestyle for all involved?
These issues become particularly important when planning any succession in the family business. It is essential for family members to discuss their expectations in terms of current or future remuneration, dividend payments and pension planning.
Some vital questions include:
- Is the business profitable enough to sustain all the family members who work in it?
- Can the older generation earn sufficient income to retire comfortably?
- Will the business pay an appropriate market salary to the younger generation while working in the business?
You may also need to consider how to secure the overall financial future of the business and ensure that non-family members and employees are protected. Ultimately, all family businesses would like to ensure continuing success and profitability for future generations.
Protecting the Family Wealth
If you’re interested in finding out more about this important issue for family businesses, join Graham and Chris Lamont at a Next Generation Round Table session ‘Protecting the Family Wealth’. This topic is ideal for senior family business members and the next generation – those who are already actively involved in the family business and those who are still considering whether to join – and will help you kickstart some of those difficult conversations.
Friday 23rd March 2018, 9.30 am – 12 noon, North Lakes Hotel, Penrith