Family employment and compensation are a potential source of conflict in any family business. All too often, family members are employed and compensated because they are family, not based on their contributions to the business. One of the key elements in any business succession engagement is to establish and enforce a family employment policy. This…
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Four Steps To A Successful Family Meeting
Step #1: Planning the meeting The starting point is specifying the goals for the family meeting. The more specific and refined the goals, the better. An agenda based on those goals should be created, delineating what is to be discussed and what decisions can hopefully be made. Based on the nature of the topics on…
Family-Business Overlap Can Create Conflict
Greg Wilson is the president and sole owner of Wilson Irrigation, Inc. (WII). He’s 59 and has two children working in the business. His daughter Katy is responsible for marketing and sales. His son Bill is in charge operations and installations. Greg has begun the succession planning process, but he doesn’t believe his children are…
Is a Mentor Relationship Right for Your Next Gen Leader?
A key to any professional development plan is to designate a mentor to assist the successor candidate. The mentor serves as a coach and helps ensure the successor stays on course toward the designated goals. Typically, the mentor serves as a confidant and sounding board for the successor, providing insight and direction when needed. The…
Questions on Buy-Sell?
I’ve often said a properly drafted and adequately funded buy-sell agreement may be the best legal document in an owner’s filing cabinet. A buy-sell agreement may help by: Preventing unwanted persons from becoming owners. Ensuring continuity of ownership through a number of triggering events. Providing a ready market for closely held business interests.…
Why Every Business Owner Needs a Succession Plan
Like most people, business owners are usually concerned about their own financial security, providing for their loved ones, and keeping their family happy. However, farmers, ranchers and family business owners often have the additional concern of keeping the business successful after they’re no longer running it—since they (or their family members) often depend on the…
Success as a Family Business
Dr. Jaffe, of Wise Counsel Research, uses the term ‘Generative Family’ to describe those families who have weathered the storms and navigated the challenges to mark multiple generations of continuous ownership. He posits, though most operations commonly follow the “shirtsleeves to shirtsleeves” doctrine, there are a few that represent what is possible when a family…
