‘Communication is essential,’ Pluck says. ‘If there is conflict in the process, that usually comes from unclear expectations, not bad intent.’
She says it is also essential to always have the business ready for sale. ‘Even if you want to pass the business on to the next generation (of the family), things can change.’
She adds that fairness can be a challenge. ‘You might have the second generation working in the business for 20 or 30 years, but mum and dad still own the company. How does the (younger) person feel?’
Pluck feels the tourism sector is relatively successful when it comes to family succession and/or bringing loyal and trusted staff members into the ownership.
‘I think tourism benefits from a double brand – a combination of New Zealand and the family brand. It’s an enjoyable business to be in for the next generation and there is often room to diversify – perhaps they start with a hotel and then move into rental cars, touring or events.’
Pluck notes that family businesses still have inherent strengths, including trust from the public.
‘In New Zealand, 75% of businesses are family-owned and 50% of the workforce is part of a family-owned enterprise. Some 70% of consumers trust family businesses over non-family owned companies. For tourism, that trust is a real commercial asset and it is worth highlighting in the market.’
