Tom and Steven grew the company to a substantial size with many workers and subsidiaries with other businesses. They engaged consultants to advise them on various managements, financial and corporate matters.
They even obtained better rates and bigger funding from overseas financial institution with the help of their professional service providers.
They also establish offshore and overseas companies.
After growing the company, they started a succession planning for future generations to take over the company when they are not around. Some of their companies went for listing.
During the course of business, they had certain debtors and businesses that failed which were closed down.
The Bigger, the Worse?
Bosses Stressed, Employee Cursed
As a big company, human capital is the most important asset. Today many employers face issues such as employee retention and performance management. Employees has choices and can go anytime. We have successfully helped many companies outsourcing their administrative function, accounts and human resource as the company position is vacant. We have also implemented Performance Management incentive schemes for companies to put the expectation of the company to the staffs which ties their incentives to their performance.
Company and My Money
Many companies is big but their shareholders are poor as they continue to invest in the company and not by themselves. Their house is a company property. Clients have lost everything when times are bad. Businesses and personal beings can always be separated through better company structure and capital allocation. We have helped fathers to segregate their company structure between personal investment holding and business structure through company restructuring exercise which free personal investment holding from encumberances. If the business fails, the personal investments are intact.
Planning 2 fail
Family businesses in Malaysia is going into their next stage of succession. Many business owners are encouraging their children to oversee their businesses. Not many are lucky to takeover and run successfully. Many have been sold off or taken over by competition. There are so many options for the business to grow either through an IPO where funds and professional people can be obtained and investment into human capital of the business. We have helped manage the transition period from father to children successfully. Family must plan extensively for a smooth handover of business to their children.