Australian Family Businesses Adapt to Modern Challenges and Succession Planning

Overview of Australian Family Businesses

Sam Mackaway, a third-generation cattle farmer in Walcha, New South Wales, operates a property that has been family-owned for 27 years. He plans to inherit the family business, which involves discussions around succession, debt, and implementing new strategies.

Family-owned businesses account for 70% of businesses in Australia, with 25% of workers employed in agriculture, forestry, and fishing.

Corrina Wright, representing the sixth generation at Oliver's Taranga Vineyards in McLaren Vale, South Australia, is involved in her family's business.

Modernization and Operational Changes

Mackaway gained experience as an electrician before returning to the farm, a background he states assists his current operations. He has introduced modern technology, including GPS and auto-steer systems in tractors, and is incorporating working dogs. Mackaway is also developing a farm management application to track cattle data such as weights, growth, and lineage.

Wright's generation expanded Oliver's Taranga Vineyards from primarily selling grapes to establishing their own brand. This shift required the business to develop new functions, including marketing, design, and social media, and employ a broader range of personnel.

Succession and Future Planning

The Mackaway family conducts succession planning discussions every five years. This regular process is informed by his father's past experience concerning his own father's retirement. Mackaway indicates that family support has assisted with the financial aspects of expanding the property he owns with his wife, Laura.

Wright emphasizes the value of non-family advisors in maintaining the business's vision.

She defines legacy as improving the business from its inherited state.

The business aims to create opportunities for future family members in various roles, not solely limited to farming. Wright's daughter is currently working for the company one day per week.