The proverb in China says “Wealth does not pass three generations” and America’s “shirt sleeves to shirt sleeves in three generations” all refer toward family fortunes that rarely last three generations.
In a family business or family enterprise, the challenge really is to sustain the fortune or wealth of the family but sadly, according to Premier Family Business Consulting, families lack the mechanism to sustain unity, in fact it is the least priority. Executive Director Neil Montesclaros of the said consulting firm added during the launching of the FEEC (Family Enterprise Excellence Conference) at the Quest Hotel, they are advocating for family unity as the central point or strategy more than the family constitution, among others. “ They need to be united first, otherwise all other efforts will remain futile.”
He further said that one of the challenges facing the families in business is succession. Passing on the leadership to the next generation can be a difficult process especially to the founder. Succession planning is as important in a family business as it is in a public corporation. Without it, there is no longevity.
Montesclaros said that the typical family business problems may range from transition change, professionalization, to motivating the younger generation and teaching them responsible ownership. In a family business, he explained that there should be a clear-cut policy before the need arises.
But families can lose their wealth by the third generation even when a family business isn’t involved. Sometimes, the second and third generations don’t even understand how to hold on to or create wealth. They only know how to spend it. The Founder in the meantime likes to be in control at all times neglecting issues on succession planning, estate preservation and balancing family welfare vs. business growth.
All these issues, challenges and needs of the families in business will be tackled in the 2015 Family Enterprise Excellence Conference this coming October 26. Jonathan Ramos, founder of Premiere Family Business Consulting is a strong advocate of uniting families in business. Certified by FFI (Family Firm Institure), Ramos particularly cited the need for SMEs to take part since majority of them are family owned . This is the 3rd conference this 2015 and much bigger and better. He further said that family business is everybody’s business considering that 80% of businesses in the Philippines are family owned.
During the Launching of the Conference at Quest Hotel, Atty Jim Lopez, one of the renowned consultants of Premiere gave his welcome remarks and cited the importance of uniting the families and that more than a family business lawyer, he also advocates for a wholistic approach of uniting families in business.
Premiere Family Business Consulting is the only family business consulting firm in Southeast Asia who places unity as the heart of their processes and provides holistic services that integrate family and business system for families in business and instrumental to sustain family unity and prosperity in their current and future generations.
For details about the Family Conference, log on to www.premierfamily business.com or visit them at the 2/F Insular Life Business Centre, Cebu Business Park or you may call them at (032) 266-2831.
