Surviving and Thriving in Your Family Business

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Why you should start a family business Shared goals

Shared property and/or skills

Family legacy

Being at home with the kids

Making money

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Why you should think twice All economic eggs in one basket – risk

Leakage of work life into family relationships

Leakage of family relationships into work life

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5 Mistakes family businesses make1. Starting with too little capital

2. Failing to create process and structure

3. Distracting or unprofessional work atmosphere

4. Overlooking poor performance, especially from family members

5. Hiring adult children who have no outside work experience

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A 6th Big Mistake Not defining the goal behind starting the business To provide jobs for family members

To create a family legacy

To make money, simple as that

To grow an asset to sell later

Because all sorts of decisions downstream need to align with the goal!

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For family startups – 5 things to do to start from a solid foundation1. Create a plan – include vision, scope, products and

services, competition, financial requirements and projections, marketing, etc.

2. Assemble key advisors – outside information and help in case of disagreement or controversy

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For family startups – 5 things to do to start from a solid foundation3. Summon family support – if they are not with you,

rough seas ahead

4. Define roles and create shared expectations from the start

5. Structure separation between work and home life

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Some words for the boss Model the behavior you want to see in others

Talk about the shared vision often

Nurture the emotional connection, but

Notice when it’s time to be the boss, and be that

When you’re at home, be at home all the way

Remember to groom your backup

Do estate planning if you want the business to continue

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More words for the boss Share the company’s financial condition

Create checks and balances

Be open to hires from the “outside”

Do what you need to do to be realistic about the current capabilities and future potential of your family members

Remember that some business decisions will feel very personal to those impacted

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For the SOBs and DOBs (sons and daughters of bosses) Work somewhere else first

Get experience you can bring back

Build your confidence outside the homestead

Create independent financial resources

Keep Dad (or Mom) informed of your plans

Be prepared to earn your stripes – no entitlement

Resist the urge to play the family card if you’re not getting your way

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For the SOBs and DOBs (sons and daughters of bosses) Remember that this is your parent’s other

baby

Longstanding attitudes about you will impact the way in which they see you –even if the information is way out of date

Be patient in your desire to take the helm – dad or mom might want to be actively involved for a long time

There may come a time for you to help with a graceful exit

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Communication principles for families in business Communication is two-way

Separate family (personal) issues from business issues

Create communication routines everyone can count on (like the Monday morning pow-wow, etc.)

Be as inclusive as possible to prevent insider-outsider morale problems

Use multiple modes – written, verbal, demonstration, etc.

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Resources for you to tap into Small Business Administration –

SCORE Sounding board for your startup idea

Assistance with your startup plan

Team of professionals – attorney, accountant, insurance agent, etc.

Chamber of Commerce – connect to business community

Business coach or another specialist to help you develop your staff, whether family or non-family

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