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MASTERMIND

"where business starts"

Record keeping 1 Family Agri-
Business
2 for small business
owners

JUNE 2018 / ISSUE 1 / VOLUME 1 Success of

Fo 3 transfering family
business

4 Succession in
family business
u

Syera Syahidah

Greetings to all readers! First of all we want toFatinAdila
thanks to my lecturer, Dr. Shamsul because

lead us to create this e-magazine. To all readers,
we hope you guys enjoy it.

Letter from the editors

MASTERMIND

CONTENTS

PAGE 1
PAGE 4 Family Agri-Business

Record keeping for small
business owners

PAGE 8

Success of transferring
family business

PAGE 15

Succession in family
business.

Family Agri-Business

NURUL SYAHIRA However, the business family

The survival of family risks missing one of the key
businesses into second or
to the next generations is facilitator of business start-up
an uncertain process which
is from the available and development. If the family
statistics, fewer than 30
per cent of businesses are acts together in pooling
passed to the second
generation and fewer than financial, human or social
15 per cent to the third
generation. . capital for the benefit of at

least one but probably more

businesses there is a business

family

Page 1

t

"Business that has been family ownership for one or more
generations and where the family does not necessarily own

100 percent of the businesses."

so-called “family-farms” as
partnerships or sole traders
for tax purposes may have
confused the picture by
partially concealing the
identity of many family farms
as both family businesses and
part of the business family
base.

Actually, the famliy business The agri-business context
which is defined by Kenyon remain almost invisible and
Rouvivez as the family provide an area ripe for further
business that has been study and development. The
family ownership for one or agri-business families is also
more generations and worth noting that business
where the family does not families are relatively unlikely to
necessarily own 100 per undertake major geographical
cent of the businesses, a re-location. This also maybe the
controlling interest is held.If fundamental premise behind
the role of the family in much involvement in rural
agricultural businesses is hospitality and tourism
well established, the various businesses and also represents
classifications of many the unspoken assumptions
 behind much diversification
policy.

Page 2



RECORD KEEPING FOR SMALL
BUSINESS OWNERS

By Syahidah Mohamad

The aim of this work was to storing business records.
look into the activities of the Book keeping is one of your
owner-managers of small jobs most important duties as a
in managing working capital. small business proprietor.
Owner-managers of small The achiever of your job
businesses do not need the depends on creating and
same level of sophistication sustaining an effective
employed in planning, record system, whether
monitoring and controlling your clientele is a sole
working capital. They call for proprietorship, partnership,
soft skills. Therefore, or corporation.

academics, practitioners and “Record keeping is not
policy makers should solely about fulfilling
emphasize knowledge regulations or legal
management and cash requirements. Record
accounting. keeping is also about

WHAT you know about the understanding your
record keeping? Record business, now and in the
keeping can be defined as the future.”

alimony of a chronicle of one's
activities, as financial
dealings, by entering data in
ledgers or journals, putting
documents in files according
to dictionary.com. It is also
can refer equally to the
orderly and disciplined.
practice of
Page 4

Small businesses Key Points for Small
also recognize that Business
being close to 1. As a small business
customers is the best owner you will need to
marketing attack. track a significant
"Since we deliver a amount of
smaller ad and information.
marketing budget than 2. Irrespective of
they accept, we have whether you utilize a
to rely on word-of- computer system,
mouth advertising." cloud-based
The best style to computing or a
accomplish this? combination of these
"Invest time and two, you will need to
money into our people remember about
aiming them in every business software.
facial expression of
customer service Page 5
possible," Brandt
says.
Good record retention
is in the best interest
of companies. A poor
system of retention
will prevent managers
from retrieving
information needed to
establish sound
business decisions.A
poor record keeping
retention system also
presents a security
danger.

Documents Small Disputes between the
Business Owners small and large
Should Keep: entities are in the
1. Bank Statements process of being
Bank statements will carried out. Manager
be as a evident to your of small business
business owners do not need
2. Payable and the same level of
Receivable invoices sophistication used in
Some examples of the planning,
invoices the small monitoring and
business owner should control. They need
keep: skills.
3. Vehicle and mileage
expenses However, they also
Even though you run need to be pro-active
most of your business and familiarize
from home, the use of themselves with better
your personal vehicle research methods that
on a regular basis for can improve working
business activity can capital management.
be turned off.

Page 6



SUCCESS OF TRANSFERING FAMILY
BUSINESS

by : Noor Fatin Atikah Binti
Azmy

After  the economic reform

in 1978, the effort in doing However, in comparison
a research in Chinese western firm are suggested
to emphasizing contractual
family business are rarely
reported especially in relations. The relationship
in Chinese firm are more to
western publication. The
investigation are exist in informal and consecutive
the areas of financing and depending to the same or

explaining about the equal right in order to
Chinese family firm in inherit the family
general. Even though the
history of the Chinese properties. To get deeper
family are still short, the insight about this field, the
strengthening of renewal research are more focusing
and enhancing business
environment pose a concern on successions that have
for the field of research. taken place in over long
The Chinese business leader periods in two different
are more likely prefer to family firm which is one is
the long-term commitment located in China, the other
in work relationships.  one located in the German-

Danish border region. 

Page 8

How to deal with There are a few of
succession issues in family research question that are

firms in order to prevent be highlighted regarding
the failure is widely the two investigated
cases:
discussed. There are a few  
of factors that may also
lead to a preference in To answer those questions,
internal successors. And a conceptual framework is
one of that is a
favourable transaction first elaborated on the
atmosphere in the family basis of the resource-
firm as opposed to a oriented and transaction
general environment cost inspired thinking. To
get better understand the
characterised by instable
institutions. However, the factors do impact
researchers are still could knowledge transfer in

not provide a systematic inter-generational
insight on what types of succession in family
knowledge and transaction business, the researcher
atmosphere characteristics
that lead to the successful  focus on strategic
intra-family generational relevant experiential
knowledge. The researcher
changes . disscuss these implications
 
by taking different
Page 9 transaction atmospheres

into account that 

may be reflected in the The late Qing Dynasty was
industry framework, the marked with political
cultural specification or
instability and constant
macro business battles. Fiscal policy
environment. Kang Baiwan changed with new
family business, and Holz
temporary taxation to  
and Baustoff Kompanie
(HBK) are used to be
analyze.

 CASE STUDY 1 : KANG

Kang Shaojing has started

his business trading during

the Emperor Jiajing in Ming

Dynasty. The main trading

goods was grain, cotton, support the excessive

silk and wood. The military expenditure (Yang,

company was lasted for 2009). Kang had to sell

400 years and 12 land to pay back their

generation before it was debts which marked the

lost due to uncontrollable declining period of the

force such as wars. From business. Changes were

the late Qing Dynasty, taking place everywhere.

multiple factors has Banks became widespread,

influenced the family the family credit system

business before it was shut was threatened and no

down. The knowledge longer as effective as

resources in P2 contain before. 

two parts, idiosyncratic

knowledge and network-

related experiential

knowledge. 

Page 10

For the Kang case, the The HBK are large extent
preferred Chinese built on the high number of
succesiion was not sibling and there fore, they
have a wide choice for the
dominant and they are
emphasize the virtue and next successors. Based on
the European succession
the ability to become a mode, the company were
leader when considering
handed over to the eldest
the successors. Kang male heir in the family. The
resources, time, location
rules for the succession
and network are mainly tradition suggest that only
depended in the
one or two sons that are
government and they were active in the management
powerless to face the should inherit their family
turbelent external
situations. business ownership.
In the context of
CASE STUDY 2: HBK
transaction atmosphere and
(Holz und Baustoff succession, the transaction
Kompanie atmosphere was influenced

HBK was meaning Wood by the economic
and Bulding Material surroundings of bankrupcies

Company. The yaer 1870 and wars. A transaction
was marked as a big day atmosphere of  economic
to HBK because after the
German-Danish War, the welfare and political
company was split into two stability after the end of
the German-Danish war in
entities. The HBK was 1864 can be regarded as
managed by the ninth
one driver which led to
generation today. flourishing developments in
  both parts of the business. 

Page 11

Therefore not only the Page 12
outside environmental
conditions affected the
transaction atmosphere but

also the age of the
predecessors who in these
times were the main source
of experiential knowledge.
As a conclusion at HBK the

preferred European
succession mode of
primogeniture was not
predominant in the later
period (Whitley, 1999; Chau,
1991). The family tried to
solve succession problems
with flexibility but also
following traditions. they
suffered from wars and
economic crises  but still
 managed to keep the
company alive. One factor
can be seen in the number
of siblings in  each
generation which made it
easier to make a good
choice and build up wide
networks and also have a
certain “competition

between suitable
successors” and the
possibility to choose the

best. .

 

COMPARISON AND
IMPLICATION

 When it comes to According the family
comparing two family   business owner in the ninth
business, it has to be alert
that Kang company was an generation, rules and
traditions as well as
established company,
whereas the HBK is just obligations derived from the
respected company name
been founded. The
experiential knowledge at Dethleffsen were followed
by family members also in
Kang was more advanced
at the beginning. HBK also their private lives. 
followed a less strict mode

by allowing two brothers
or in one case the mother
take over, which impacted
the knowledge transfer. In

the Kang business,
successors started life-
long learning processes
early in their childhood

and therefore gained
relevant tacit and

experiential knowledge
(Bjuggren and Sund,
2002).HBK had the

advantage of choosing
their successors from a
large number of siblings.

Page 13

At Kang a rich environment
contributed to this

knowledge transfer process
in consisting of two
characters:  

1) The high cohesive family
business culture, that drives
all family members to sustain
their business by all means,

in particular, to keep
 balanced relationship with
 all the stakeholders which is

indispensable in their
network related knowledge

transfer.
 2) Second, the unique
family business system that
cannot be easily replicated

by others ensures the
knowledge transfer.

For family business owner it
would be helpful to see what

resources were relevant in
the two different cases in
the two periods and learn
how to deal with different
transaction atmospheres.

 

Page 14



SUCCESSION IN FAMILY
BUSINESS

BY: Adila Farhana binti Kiisaei

WHAT IS SUCCESSION IN
FAMILY BUSINESS

i

Succession is determining

who will take over leadership

or ownership of the company

when the current generation

r e t i r e s o r d i e s . Ti h e k e y t o

avoiding conflicts about who

will take over a business is ISSUES IN FAMILY
having a well-defined plan in BUSINESSES

place. A family retreat, or a

meeting on neutral ground • Family versus Non-family

without distractions or Employees

interruptions, can be an There are a number of

ideal setting to open common issues that most

discussions on family goals family businesses face at

and future plans, the timing one time or another.

of expected transitions, and Attracting and retaining

the preparation of the non-family employees can

current generation for be problematic because

stepping down and the future such employees may find

generation for taking it difficult to deal with

overThe business leaders family conflicts on the

should take steps to job, limited opportunities

gradually remove these for advancement, and the

relatives from the daily special treatment

operations of the firm. sometimes accorded

Page 15 family members

• Employment Qualifications

Many family businesses also

have trouble determining

guidelines and qualifications
• Salaries and Compensation

for family members hoping to
Another challenge frequently

participate in the business.
encountered by family

Some companies try to limit
businesses involves paying

the participation of people
salaries to and dividing the

with certain relationships to
profits among the family

the family, such as in-laws,
members who participate in

in order to minimize the
the firm. In order to grow, a

potential for conflicts.
small business must be able

Family businesses often face
to use a relatively large

pressure to hire relatives or
percentage of profits for

close friends who may lack
expansion. But some family

the talent or skill to make a
members, especially those

useful contribution to the
who are owners but not

business. Once hired, such
employees of the company,

people can be difficult to
may not see the value of

fire, even if they cost the
expenditures that reduce the

company money or reduce the
amount of current dividends

motivation of other
they receive

employees by exhibiting a

poor attitude. 

Page 16

STEP FOR SUCCESSION IN Step 3: Hold meetings and
FAMILY BUSINESS discuss succession

A really good succession

planning process boils down

Step 1: Treat succession

to involving and

planning like it is urgent

communicating with the

A family business ignoring its

family members no matter

succession plan is akin to a

which generation they belong
30-year-old worker ignoring

to or their immediate

his retirement plan. Both

contributions to the firm.

events (succession and

retirement) seem like they

Step 4: Educate your family
are a long way off, but the

Education is the foundation
reality is that ignoring the

of a successful transition.
early years can lead to major

Without training and learning,
problems down the road.

people struggle to

contextualise what they need
Step 2: Rally around your

to do in the succession

family values

process.

Strong family businesses

The family must be educated

create a sense of shared

enough to perform the

values the kinds of values

following tasks:

that survive beyond one

• Handle conflict, whether for
owner. As you sit down to

family or business reasons.

prepare a succession plan,

• Accept positions of

take note of the moral and

responsibility in the company.
governing philosophies that

• Act as advocates for the

guide your enterprise

business no matter their

present responsibilities.

• See the family business as a

living legacy, with an

interconnected past and

future.

Page 17

REFERENCES
Family-Owned Businesses - Encyclopedia - Business

Terms | Inc.com. (n.d.). Retrieved from
https://www.inc.com/encyclopedia/family-owned-

businesses.html

Gil Bozer, Leon Levin, Joseph C. Santora, (2017)
"Succession in family business: multi-source
perspectives", Journal of Small Business and

Enterprise Development, Vol. 24 Issue: 4, pp.753-774,
Retrieve fromhttps://doi.org/10.1108/JSBED-10-2016-
0163

Six simple steps for succession in family businesses -
SmartCompany. (n.d.). Retrieved from

https://www.smartcompany.com.au/business-
advice/strategy/six-simple-steps-succession-family-

businesses/

Page 18