Resilience is part of family businesses DNA
Family businesses are inherently resilient – and yours is no exception, whether recently-founded or long-established. Either way, resilience is part of your family business DNA – underpinned by your deeply-held values and purpose, long-term horizon, agile decision-making, patient capital, and rock-solid commitment to your workforce and communities.
As in any crisis, family owners had to stand united, define their commitment to their business and speak with one voice. Sending a strong message to employees, business partners and public was vital. Now that Vietnam is on its road to recovery, how family businesses leverage on the lessons learnt during the pandemic will further boost the competitive edge of family businesses.
COVID-19 brought about challenges and disruption never imagined before. Your ability as a family business to thrive post pandemic is critical to the future of your family, your business and all the people who rely on it.
It is time to revisit your Owner’s agenda
How has the pandemic changed your approach or views?
The four ownership areas that family businesses should consider
Embrace and live your values
For a family business, values are the connective tissue – the source of your success, commitment and longevity. But when survival is at stake and these values are challenged, cultivating them may not feel like a priority.
Never was it more evident than during the COVID-19 crisis. Staying united and leaning on your unique family values helped you stay connected with your ecosystem – your family stakeholders, employees, communities and customers.
Differentiate with good governance
Effective governance – both family and corporate – is critical at any time. COVID-19 highlighted its importance. Trust, transparency and clear expectations helped navigate family businesses through challenges in the right way.
Future proofing your business requires you to keep your directors' duties front of mind. Be ready to seek external expertise if you’re uncertain.
Manage your business and family wealth
Thoroughly evaluating the impact of COVID-19 on your personal finances, estate and investments is key post pandemic. Of course, it is also during this time, where you as a family business owner want to give back to your community in areas where it is most needed.
Many countries, including Vietnam has provided tax incentives to help the local economy get back on track. PwC is monitoring the changing tax landscape in real time here.
Establish ownership continuity plan
Succession is critical to the success and continuity of any family business. Like all other businesses affected during COVID-19 with faltering cashflows, uncertain sources of operations or funding and supply chains disruption, ownership is an unavoidable added element for family businesses.
Post pandemic is an opportune time to turn to your next generation for leadership. In our latest NextGen Survey – Vietnam in focus, they told us they’re ready to make their mark, especially around digital transformation – but that they don’t yet feel they have the licence to operate. Now is the time to bridge the generation gap, hand over that licence – and let them help drive your business post crisis.
