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Family
Owned Business Issues |
A business ends when the owner sets fire to it. A sports team is sold out of the family in order to pay estate taxes. Father and son can’t work together. Son leaves and becomes dad’s main competitor. Any of this sound familiar? Scenarios like this happen all too often. It used to be common to think that there were only two main factors involved:
(1) Failure to plan
(2) Inadequate and inappropriate communication
Every business failure could be accredited to them, to some degree. It is time to expand the list and make it more practical.
Causes
of Failure
|
Cash Flow Shortages |
Transfer
of Ownership Landmines |
Business
Practices |
|
Inadequate
Estate Planning |
Management
Succession Problems |
Family
Behavior Patterns |
|
|
Personal
Issues |
|
The
Freeman Institute's™
~ Professional Services ~
Leadership Succession and Business Continuation Planning
Three key factors govern a successful family business transfer:
| a plan for leadership succession and business continuation |
| the management of both business and family assets |
| a family vision for leaving a lasting legacy |
Vision, Mission,
Core Values & Operating Principles
Family and Business Assessments
Key Leadership/Followership Development
Problem Solving
Decision-Making Skills
Employee Retention Planning
Ownership Transition Planning
Family Issues
Conflict Resolution
Understanding Personality Dynamics
Strategic Management
Organizational
Culture Change
Human Resource Development
Advisory Board Selection / Development
Family Non-Profit Organization
Family-Owned Business Mediation Service
Strategic thinking and methodical planning are always vital to the success of any business. They are critical during times of change. Since the structure of family business is represented by three distinct, but interlocking systems, (the family, the business, and the ownership) an integrated method of priority planning is essential.
A
Voluntary Process
Hard On Problems, Soft on People
Saves Time and Money
Private With Confidential Results
"Win-Win" Solutions
Tailored Resolutions
Enhances Communications
Improves Relationships
|
CAUSES OF FAILURE |
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Cash Flow Shortages for
|
--start-up |
|
Inadequate Estate Planning
|
--unwillingness
to face mortality and the reality of estate taxes |
|
Management Succession Problems
|
--absence of vision or
failure to communicate that vision --paying people what they need, not what they're worth --failure to appoint a successor --inadequate training of successors --gender and age prejudice --differing values between generations, especially related to --work ethic --one-person show as principal management style |
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Personal Issues
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--belief that
disability will never happen to me or mine |
|
Family Behavior Patterns
|
--shoving
conflict under the rug |
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Transfer of Ownership Landmines
|
--no buy-sell agreement --by-sell agreements with no price or valuation formula specified --no way to fund buy-sell agreements --inability of family member to manage assets --belief that fair means equal ownership among heirs --secrecy -- when it keeps stakeholders --uninformed |
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Business Practices
|
--lack of attention to
business --employees stealing you blind --keeping unproductive people on the payroll --tunnel vision -- absence of checks and --balances --unwillingness to diversify for fear of --violating the original --vision |
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Streaming Video Clip of Dr. Freeman For More Information:
|
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