Xuewen: Financial problems of family enterprises

"Zhejiang business" reporter Yijong "the first 30 years, the Times to create a hero, after 30 years, heroic creation of the era."　　"In the" modern management model of Chinese family enterprises "as the theme of the sub-forum, Swiss rock Investment Consultants (Shanghai) Co., Ltd. Executive director Xuewen with a philosophical remark as a prologue. "Internal strength will affect Wei Gong." The so-called plan to keep pace with change, change cannot catch up with degradation, no matter how good the enterprise itself, must have some institutional preparation. Xuewen pointed out that the family business is not good, three or four generations can see. Slowly metamorphosis, can form their own characteristics. "For the Chinese family business, the current negative problem is in cash management." Rich generation is stones, not enough to borrow, so the private lending so developed. At the same time, the investment blindly, by the rule of thumb, by the network, say well called pluralism, said that the harsh is unable to focus. "In the Xuewen analysis of the results of the October 2008, that is, before the financial crisis, do a good job in capital planning enterprises, now the pressure is small, did not do well, now pressure." "The first generation of success lies in the good of the world, including relationships, monopoly resources, these, and now in the first generation of hands, whether the second generation can pick up the class?" How can large enterprises such as Gome and Chung Jin Pass on existing resources to family members? In the west, rely on the diversification of equity, mutual supervision, let the enterprise development. And Europe, Japan, equity concentration, cross shareholding, supervision and development. Xuewen pointed out that the family business can not be successful, and the inside can not be outstanding talent is critical. How to develop a leader? "Theoretical cultivation is not a specific drug, in fact, learning from failure is the best." Xuewen points out that the rich generation is in trouble and knows how to deal with the migrant workers and with the government. Fu second generation has not experienced these, but still very hard, because do well, others say is rely on dad, do not good, said is the black sheep. "So the rich generation wants to go out and start a business, but now the entrepreneurial environment is different from 20 years ago." I believe that three generations of rich, more painful. Because people who are afraid to come and make friends with them are all fancy money. Three generations of rich very lonely, surrounded by gentry, no Ji. In addition, the current constraints on the Chinese family business forward a big problem is the poor financial management. "Family system characteristics, from the rich generation, is their own decisions, do not delegate, do not want to expand funding channels."　　Xuewen said that family businesses often pay less attention to finance, financial system is not perfect, not to save money, what they come to, is to evade tax, make two books, and generally heavy blood, affinity. So, the family council, the Family Affairs Management Association, should be formed. To make good rules and regulations, can not be determined by the rules of experience, project decision-making to try to recruit professionals, expand channels, effective fund management. Any decision should be made in the interests of all parties.　　"At the same time, Xuewen suggested that the rich generation should separate the roles of fathers and bosses, establish long-term succession plans, and detailed regulations, including how disputes should be resolved." "At present, family business should thinkA few financial questions: How big is the family's demand for money? The next four or five years? Cash liquidity? Age, health and income of family business members It is best to establish a reporting mechanism. Make each family member clear. At the same time, Xuewen pointed out that the second generation of rich should have planning. Through the dividend system so that good employees stay, on the other hand also learn to attract good industry investors.