When Dad Is Still The Boss

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Surviving and thriving in your family business

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When Dad Is Still The Boss

  1. 1. When Dad is still the boss…<br />Surviving and Thriving in Your Family Business<br />www.summithrd.com<br />
  2. 2. Why you should start a family business<br />Shared goals<br />Shared property and/or skills<br />Family legacy<br />Being at home with the kids<br />Making money<br />www.summithrd.com<br />
  3. 3. Why you should think twice <br />All economic eggs in one basket – risk<br />Leakage of work life into family relationships<br />Leakage of family relationships into work life<br />www.summithrd.com<br />
  4. 4. 5 Mistakes family businesses make<br />Starting with too little capital<br />Failing to create process and structure<br />Distracting or unprofessional work atmosphere<br />Overlooking poor performance, especially from family members<br />Hiring adult children who have no outside work experience<br />www.summithrd.com<br />
  5. 5. A 6th Big Mistake <br />Not defining the goal behind starting the business<br />To provide jobs for family members<br />To create a family legacy<br />To make money, simple as that<br />To grow an asset to sell later <br />Because all sorts of decisions downstream need to align with the goal!<br />www.summithrd.com<br />
  6. 6. For family startups – 5 things to do to start from a solid foundation <br />Create a plan – include vision, scope, products and services, competition, financial requirements and projections, marketing, etc.<br />Assemble key advisors – outside information and help in case of disagreement or controversy<br />www.summithrd.com<br />
  7. 7. For family startups – 5 things to do to start from a solid foundation<br />Summon family support – if they are not with you, rough seas ahead<br />Define roles and create shared expectations from the start<br />Structure separation between work and home life<br />www.summithrd.com<br />
  8. 8. Some words for the boss<br />Model the behavior you want to see in others<br />Talk about the shared vision often<br />Nurture the emotional connection, but<br />Notice when it’s time to be the boss, and be that<br />When you’re at home, be at home all the way<br />Remember to groom your backup<br />Do estate planning if you want the business to continue <br />www.summithrd.com<br />
  9. 9. More words for the boss <br />Share the company’s financial condition<br />Create checks and balances<br />Be open to hires from the “outside”<br />Do what you need to do to be realistic about the current capabilities and future potential of your family members<br />Remember that some business decisions will feel very personal to those impacted<br />www.summithrd.com<br />
  10. 10. For the SOBs and DOBs (sons and daughters of bosses)<br />Work somewhere else first<br />Get experience you can bring back<br />Build your confidence outside the homestead<br />Create independent financial resources<br />Keep Dad (or Mom) informed of your plans<br />Be prepared to earn your stripes – no entitlement<br />Resist the urge to play the family card if you’re not getting your way<br />www.summithrd.com<br />
  11. 11. For the SOBs and DOBs (sons and daughters of bosses)<br />Remember that this is your parent’s other baby<br />Longstanding attitudes about you will impact the way in which they see you – even if the information is way out of date<br />Be patient in your desire to take the helm – dad or mom might want to be actively involved for a long time<br />There may come a time for you to help with a graceful exit<br />www.summithrd.com<br />
  12. 12. Communication principles for families in business <br />Communication is two-way<br />Separate family (personal) issues from business issues<br />Create communication routines everyone can count on (like the Monday morning pow-wow, etc.)<br />Be as inclusive as possible to prevent insider-outsider morale problems<br />Use multiple modes – written, verbal, demonstration, etc.<br />www.summithrd.com<br />
  13. 13. Resources for you to tap into<br />Small Business Administration – SCORE<br />Sounding board for your startup idea<br />Assistance with your startup plan<br />Team of professionals – attorney, accountant, insurance agent, etc.<br />Chamber of Commerce – connect to business community<br />Business coach or another specialist to help you develop your staff, whether family or non-family<br />www.summithrd.com<br />

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