The Worst and the Best Companies
According to an American Management Service, Inc. survey compilation, http://www.amserv.com/familystatistics.html …
- Family businesses comprise 90 percent of all business enterprises in North America.
- Only 30% of family owned businesses survive to the second generation, 12% to the third, and 3% to the fourth.
- Of CEOs due to retire within 5 years, 55% have not yet chosen their replacement.
According to my experience, the best companies I know are family businesses and the worst companies are family businesses. When it works, you have aligned team members building on solid, functional, trusting relationships. Communication is streamlined. And there is the pride of creating a legacy of opportunity and wealth.
When a family business doesn’t work, it’s awful. Unresolved family issues (“Dad always liked you best!”) sabotage communication and production. Unqualified offspring are hired and are given a pass when it comes to policies and procedures.
Here are tips for putting the “fun” in dysfunctional family business….
- Have the conversation. Could you gather the family/business members together for a day, or a half day, and ask this question? Answer individually, then share your answers.
- “What do I want to be and do and have?”
- If you don’t trust that you could meet peacefully as suggested above, invite a counselor or spiritual leader to facilitate the meeting…and keep things civil.
- Commit to an Organizational Chart. Clarify who reports to whom and who is in charge. Map it out.
- Then, create a short bulleted list of responsibilities for each position on the Organizational Chart.
- There can be only one person at the top. Someone must make the call and set the sail. Is it you? Lay claim to your position. Be the leader. Is it someone else? Embrace him or her as the leader. There are advantages to being the captain as well as the lieutenant.
- Put a business plan together. The tips above will help you get started. Gather the family members together again. Write down what you want…as a family, as a business. Who does what. Why. Who wants what you have to offer. How much to charge. How will you market and sell it. How will you make good on your promises. What actions will help you do this.
- Put the pages in a binder. Now, you have moved your ideas from thought-form to physical-form. That’s a powerful step.
- You can do this in a weekend. Check out The Weekend Biz Plan.
- Choose to stay or go. You don’t have to work in the family business. Really. You could go elsewhere. After the initial upset, you will probably still get invited to Thanksgiving dinner.
- If you choose to stay, be there. Be all in. No more sitting on the fence, whining, complaining or wishing.
- Put “buy sells” together and get “key man” insurance. At some point, someone is going to want out or need an exit. Plan so that family members can leave without collapsing the business or the bank account.
- Let go of the worst and move towards the best. You could just set the baggage down. You could let the old wounds heal.
Don’t wait for her to change. Don’t wait for him to die. Decide now that you are going to live your best life, and – perhaps – create your “best” family business.
Ellen Rohr – The Plumber’s Wife turned Business Makeover Expert®
Once upon a time, Ellen got involved in her husband’s company after his partner died unexpectedly. Boy was she humbled! It seemed like lots of money was moving through the company, but at the end of the month there was never any money left. Thankfully, Ellen found terrific mentors, savvy contractors who taught her how to keep score in business, how to put a simple business plan together and how to make money.
Ellen started Bare Bones Biz, a venture capital and consulting company in 1995 to help folks of all ages turn their big ideas into successful businesses. Ellen is also a successful franchisor, helping launch a plumbing franchise to 47 locations and $40 million in sales in under 2 years. Ellen is currently the president of Zoom Drain and Sewer, LLC since 2014.
Ellen has appeared on television over 50 times sharing Business Tips. She is also a columnist for Huffington Post, PHC News, and a contributor to many business journals and trade magazines. She takes ordinarily dry-as-dust business basics and makes them simple and fun. Ellen is also the author of four business basics books: Where Did the Money Go?, How Much Should I Charge?, The Bare Bones Biz Plan and The Weekend Biz Plan.