Short-term approaches for long-term goals

In terms of short-term business objectives, Thai leaders found that improving profitability, attracting and retaining the best talent for the business, and professionalising the business are their top three goals.

This vision has set the direction of a business formation that allows Thai firms to achieve their long-term goals. These are protecting the business as the most important family asset, creating a legacy, and creating dividends for family members. To make the vision a reality, owners need to be aware that a clear and well-executed plan is a bridge to link the medium-term business plan with long-term aspirations.

Normally, when a family business looks for financing to expand business and develop operations, one of its concerns is how their decisions would affect next generations. The results present different approaches, but most Thai family businesses remain conventional for sources of funding as 38% of Thai decision makers will start to use bank lending/ credit lines, capital markets such as bonds, debt issuance, etc. (22%), and internal sources such as family cash, cash flow (16%). However, there is a sign that the stock market will attract next generation leaders to raise capital. More family businesses are likely to be listed on the stock market2. And this is for three main reasons, 1) raising a large amount of money at a low price, 2) strengthening the operation by professional management, and 3) sustaining the business.