Is a Legacy Business a Blessing or a Burden?

One of my favourite Ricky Gervais quotes is about the burden of being a misophonia sufferer, which I am, though it’s far too profanity-laden to share here on LinkedIn. My second favourite? It’s about the burden of tradition: ‘You can’t plan your legacy.’ I admit it’s not a profound statement, but it’s one he made as part of a skit about how people imagine their legacy and how they will be remembered and what they will be remembered for. I’m sure Caption Cook and Mother Theresa didn’t ever imagine their legacies being as harshly criticised and reassessed as they are now.

A legacy business is one which spans multiple generations, and they are usually a family business. The Family Business Association of Australia states that 70% of all Australian businesses are family businesses, and they provide 50% of the workforce in Australia. A line on their website really piqued my interest; ‘helping members navigate the nuanced intersection of family dynamics and business operations, supporting both the wellbeing of the family unit and employees, and the success of the business through generations’.

Something I consider a lot, particularly now our family business is over a decade old, is the future. For our business and for our family. I see some amazing local family businesses both in Wyndham and in the plumbing industry either starting their journey or into their second or third generation of family members steering the ship.

Growing up in a family business is like a front-row seat to adulting and reality (or for real life as Bluey would say). Our kids have witnessed things many their age may not have, not just the business wins, but the long nights, the hard decisions, the budgeting meetings (and HR disagreements) at the kitchen table, and the weight of being responsible for a team of people who rely on us. They’ve seen firsthand what reputation really means, that it’s something you build slowly and protect fiercely; especially if your business name has your family name in it, that’s a whole ‘nother level of responsibility.

But they’ve also seen the beauty in it; the flexibility that allows us to be at their sports days and school assemblies, the chance to travel for conferences and awards nights, the ability to care for sick family members and the pride of being part of something bigger than a job. In many ways, they’re growing up with a deep understanding of work, resilience, and the value of showing up, and that’s a legacy I’m proud of, whether they choose to follow in our footsteps or forge their own path.

I have many concerns about the pressures of carrying on the family business. I didn’t grow up with entrepreneurial parents so I’ve really had to learn to love this lifestyle choice my husband/ business partner and I made. My husband Dave is from a dairy farming family, now THAT really is a lifestyle business. Whilst he was part of the 50% of siblings that didn’t want to take over the farm and milk cows every day at 3.30am for the rest of their lives, the small business values imprinted hard on him. He got an ABN the day after he got his trade certificate (I made that bit up, I don’t know exactly when he got it but knowing him it’s probably true). He worked hard for all of his employers and gained some incredible knowledge both here and in the UK, but there was always a piece of the puzzle missing for him, a puzzle that is seemingly complete with business ownership.

When family businesses finally (FINALLY) become profitable and have aged enough to ensure a sense of sustainability and longevity, you can’t help but think of what happens next. We’re far from the stage of stepping away from our business, in fact I don’t think my husband ever will fully retire. But something that would keep me up at night, if not for my calm + sleep gummies, is our business’ succession plan.

I couldn’t get enough of the HBO series Succession. For those who haven’t watched this binge-worthy masterpiece yet, it follows a very successful family business and its members struggle through the ‘passing of the baton’ phase of the business due to the lack of a clear succession plan from its founder, Rupert Murdoch Logan Roy.

Now my family is nothing like the Roy family, and we aren’t billionaires or toxic a**holes (I hope). But we can learn from the lessons of a fictional family and ensure our business has a clear succession plan. My biggest worry, if the succession plan includes my children, is that legacy businesses can unintentionally rob them of the drive to carve out their own identity. Would they have ever chosen plumbing if we didn’t already have a business for them to step into? Would they feel obligated to carry something forward that they didn’t create, choose or have a dream of creating?

When my beloved Dad was alive he used to remind me to take every opportunity that is presented to me. Those humble but wise words have served me well. However, there’s a fine line between opportunity and obligation. I worry about raising ‘nepo babies’, or kids who inherit the perks of our hard work without necessarily developing the same grit or hunger. The very safety net we’ve worked so hard to build might be the thing that dulls their ambition. I don’t want them to feel like they’re trapped by our plumbing business, or worse, entitled to it.

But then again, isn’t that the gift of generational progress? That we work hard so our kids can have options we didn’t? Like helping them buy their first home, paying private school fees so they receive a good education etc. If they choose to join the business, perhaps they’ll bring new ideas, innovations, and energy that could take it further than we ever could. Maybe the stability and security of a legacy business will give them the freedom to take risks we couldn’t afford. Maybe it becomes the foundation, not the ceiling. Or, maybe the old saying will come true; ‘the first generation grows it; the second generation enjoys it; the third generation destroys it’.

I suppose that’s the paradox of a legacy: it can be both a burden and a blessing, as recently described by a KPMG report. It all depends on how it’s passed down, and whether it’s a gift they’re free to accept, or walk away from, with love and without pressure. Then we can sell it to someone else instead and all this pressure of burden will go away, ha! Yes, please!

Where does that leave us and our succession planning? Like most things in parenting and business, our succession plan is a work in progress, evolving as we do. We don’t have all the answers, and probably never will. We can build a strong foundation, create opportunities, and instil values, but we can’t control the path our kids choose. And maybe that’s exactly what Ricky Gervais meant when he said, ‘You can’t plan your legacy’.