1. How would you describe the financial performance of your family business?
I think even in financial terms, my family business has been using traditional methods for the calculation of profits and its maximisation. I've barely seen any techniques that they have applied for the maximisation of profit. They have hired Chartered accountants who have been handlings finances of the whole market at once, they barely know the businesses personally so they can't actually work for the improvisation of financial performance of one company.
2. In what ways are your family’s economic needs in conflict with the family business’s financing and investment needs?
My business doesn't have any proper system for investment plans and financing of ongoing sales. The board members hardly concentrate on this aspect of the business. Due to this, we've already faced a lot of consequences, still there's no improvisation of the ongoing methods.
3. How does this stage of your family business’ lifecycle contribute, affect or erode the economic surpluses generated by the family business and growth aspirations over the next 5 years?
The investments that the board members have been doing, most of it's not even related to the line of business we already have. It's mostly in the real estate market, which cant produce as much profits as can be produced if we invest the whole lot in our own business, it's specialisation or research or development for new sources of income. This actually eliminates the growth opportunities for our own line of business, because the supply chain and the customers, targets have remained the same since long.
4. What transition do you envisage for your family business’s financial investment and management needs in the next decade?
I plan to change the whole criteria of investments for this business. I personally want to invest in other lines such as retail and manufacturing, so that we eliminate the extra capital we waste on importing items from outside, and even getting from the local market.
The non-family professional executives can be highly capable of changing the operations of the company. They bring their independent and unique viewpoint into the company. As my family business is also men-dominant, therefore, the new and different perspective can alter the decisions made by these men. The independent executives on the board of the company can shift the dynamic of the company and make it more competitive in the market.
The financial performance of the family business is satisfactory and reasonable. The finances of the company are managed by professional finance executives who are responsible for allocating the right amount of cash to the top priority activity. Moreover, the cash flows have been positive over the years. The maximization of profits is done by controlling the costs of the company. Experts are hired who are efficiently using the resources and enhancing the profitability of the company. This shows that the company is using different methods to increase its profits in the future.