What significant problem exists in your family-owned or closely-held business that is not talked about and is often avoided? Owning a business is challenging, complex and difficult. The goals are the same for most business owners –profitability, sustainability/growth and building a legacy. However, family-owned businesses have the added responsibility of working with and managing family members to help achieve these goals. This can be challenging and touchy, even in the best of times. As a family-owned or closely-held business owner, you have unique and differentiating issues. Here are a few examples:
- The owner has not, or will not, talk about when he will turn the business over to the next generation.
- There is a plan to sell the business to the next generation or key staff, but where’s the money going to come from?
- There is a lack of confidence in the next generation’s ability to make the business successful going forward.
- There is a lack of effective communication among senior management team members.
- There is a lack of boundaries among senior management family team members that has caused non-family members on the team to eventually leave the company.
- There is a perceived lack of equity and/or clarity among senior management with respect to pay and responsibility.
- There are no clearly defined roles/responsibilities among family members involved in the business which has resulted in poor productivity, reduced profitability and unnecessary conflict throughout the company.
- The owner is interested in selling the business but has no idea where to go next.
Are one of these your elephant in the room, or do you have a different one?
When these problems are addressed by us in a professional, confidential and compassionate way, you see improvements in your…
Business, family relationships and quality of life.
The following case studies illustrate how we partnered with businesses to eliminate their elephant in the room. We can do the same for you!
- CASE: Client was interested in selling her second generation family-owned business but didn’t know where to start. It was a difficult decision for her, but one she had made after careful thought and consideration. She was concerned for her employees and for her own future, so she called us for a consultation.
THE WORK: Our work focused on three major areas: 1) Planning for her future – both in terms of what she would do in the next chapter of her life and in terms of her financial situation; 2) Preparing her business for sale (upgrading of business operations, systems and procedures); and 3) Planning for the future of her employees.
THE RESULTS: Client successfully sold her business to another member of the family. She was able to secure positions for most of her employees as part of the sale. The terms of the sale provided for an annual income for the client (in addition to a lump sum payment), which enabled her to pursue other entrepreneurial ventures!
- CASE: Second generation business owner of a manufacturing company found his business suffering. The company’s product was recession-proof. However, the business was operating without any formal strategic planning process in place. The company’s standard operating philosophy was “let’s do better than last year” rather than to set goals and objectives and be proactive in marketing and sales efforts. Called us for help.
THE WORK: Our work with this client centered on beginning a Strategic Planning Process designed to focus the company’s efforts over the next 12-24 months. During the course of this planning process, several immediate process improvements were identified. These were implemented resulting in significant profit improvements.
THE RESULTS: Client reports that business continues to improve, along with company morale. Performance metrics are in place which enables the owner to monitor business performance on a weekly basis and to make adjustments and/or focus his attention on the area(s) that need it.
Eliminate the elephant in the room in your business. Contact Business Legacy Consulting today for a free consultation.