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With rapid technological changes, a growing focus on sustainability, and the evolving demands of a global market, the Rising Generation has both an immense responsibility and an unprecedented opportunity.
Building strong business and financial acumen—grounded in strategic thinking, financial literacy, and adaptable leadership—will empower them to navigate change and steward their family legacy with confidence. In addition, it will help them in understanding how to protect the family asset pool, utilising asset protection and estate planning.
Let’s explore the challenges and opportunities awaiting the Rising Generation and highlight how fostering essential skills will lay the foundation for a successful and resilient future for your family.
One of the greatest strengths the Rising Generation can bring is the ability to think long-term. Unlike traditional businesses focused solely on profits, family businesses have the luxury and responsibility of shaping their legacy across generations. This long-term perspective allows strategic change and innovation whilst remaining grounded, ensuring that growth initiatives align with legacy-based vision for the future. Whilst innovation is crucial, a balanced, conservative approach to funding allows the Rising Generation to manage risks effectively.
One of the key challenges in this conservative approach is navigating individual family members’ aspirations. As the Rising Generation grow into leadership roles, they must consider whether all family members are committed to staying and growing wealth together, or if some may wish to branch out on their own journey. Balancing these individual goals with collective wealth-building strategies can be complex, but with open dialogue and careful planning, the family can establish a structure that supports those who remain engaged.
Family businesses have a superpower when they work together – their agility, hard work and determination can’t be matched. This enables family businesses to achieve the unimaginable. We often find when times are tough or the economy changes, this is when the family bond is at its strongest.
Often younger generations are finding their feet in the business and it’s inevitable they’ll have their own way of doing things: different ways of conducting family business meetings or other aspirations for the future of the business. While the Rising Generation, in most cases, will be the successors of the business, it’s important to remember each generation is integral to the business’ story. This requires strong communication and openness to share stories and understand how each generation can uniquely contribute to the business.
It's critical for multigenerational families to navigate complex relationships and expectations, as well as prioritise competing priorities to ensure all family members are heard and the business success isn’t jeopardised in the meantime. This is why having an external facilitator navigate the complex waters of different family dynamics can help with long-term outcomes of the family business. They are trained to find a balance between what’s created in the business while assisting the Rising Generation in establishing individuality. Where tension arises is when there is a breakdown in communication, which can be avoided by an effort to thoughtfully communicate changes and ideas as they arise.
The three-circle model articulates how the business, the owners and the family work together. A common challenge is when the lines start to blur. An example of blurred lines could include all family members receiving the same remuneration whether they work in the business or not, only the family members who work in the business being offered ownership, or when the family members who work in the business are not paid market salaries, forgoing their family’s livelihood by continuing with the family business. So, how can you set expectations from the beginning and ensure everyone is being informed and communicated with effectively?
Our financial acumen course covers how family members should be renumerated in the business, compared to how owners are compensated and how you can continue to look after family members when they don’t work in the family business. When a family introduces clear guidelines that are communicated clearly to all family members, it allows the family and the business to move forward, removing potential resentment amongst key stakeholders.
While there are challenges when any business transitions from one generation to the other, it’s important to see the opportunities that exist. In early 2025, we will be holding Rising Generation Financial Acumen courses in each state to help the Rising Generation feel confident to take over their family business.
Our courses include strategic thinking, financial literacy, and adaptable leadership— they will empower the Rising Generation to navigate change and steward your family legacy with confidence. In addition, participants will learn the importance of asset protection and estate planning to ensure you achieve your family vision. You can register your interest here.
