Monday, March 3, 2008
I had an interesting call on Friday from a founder of a family business who had read my book. He wanted to know if I could help him sort out his relationship with his son who was working in the business. After talking about our mutual affection for Bull Terriers for quite sometime (it's in the book) we got to the good stuff which was really his confession that his dream of his son continuing the business was not shared --his son just wanted a job and didn't want to buy the shares. The call reminded me why I wrote Every Family's Business, it reminded me about just how much suffering there is in family businesses, how the love of family gets so mixed up and convoluted when you introduce money and control. There isn't enough room here to explain everything we talked about but we did end the conversation on a high note. The caller agreed to ask his son one important question... he would ask his son to help him sell the business one day and in return he would put in place an incentive plan to pay him for doing so. I could feel the relief in the caller's voice when he himself arrived at the solution -- a plan -- for exiting the business and keeping in tact the family he loved. In this particular story, a father and son working together in business gave the illussion of a succession plan, nothing more. Both were working in a family business that neither wanted to own. Starting family businesses are relatively easy-- they are always born out of love and optimism-- it is the exit of a family member from a business that is the tough part. Most lack a method, that is respectful and trusting. Only by bringing all family members together to discuss options will a succesion plan emerge that keeps two important goals front and center; preserving the wealth created by the business and maintaining trusting family relationships. My hope is that Every Family's Business is the book read by everyone in a family business --even family outside the business --and that the book is the "topic" for discussion, the thing that "breaks the ice" and get's everyone thinking and talking about their own family business succession plan.
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