pornn

Dr. Merlot’s Perspective: Motivations and Strategies for Business Growth

Loyd and I found ourselves both with a Friday free from client travel, so we decided to meet for a round of golf. I always love an opportunity to talk some smack to Loyd about his golf game.

We were rounding the turn to move to the 10th hole and ran into a friend of ours, Jack. We took a minute to catch up, giving updates on family and business. As Loyd and I were about to pull away, Jack asked if he could ask us a quick question about his business. Jack was scratching his head, so I could tell he was really struggling with something. In short, Jack had been in Board meetings the previous day, where most of the conversation focused on strategic planning and growth. Jack’s business had a strong customer base, reputation in the community and product/services. To him, he felt everything was great and his mentality was focused on sustaining success, but his Board members were more focused on growth. As such, Jack felt at odds with his Board and was struggling with the direction of the strategic plan. Other than a date confirmed for the next Board Meeting, there was no resolution or next steps identified at the end of the day. Knowing our backgrounds, Jack asked:

“If everything is going well, why is business growth so important, other than to fill someone’s ego or make more money? I need a compelling reason to take on the risk."

I opened my mouth to speak, but Loyd beat me to the punch.

Continue reading
67 Hits

As Seen in Multi Unit Franchisee - Family Business Perspective Matters

As Seen in Multi Unit Franchisee - Family Business Perspective Matters

An owner's perspective about the purpose and who the business serves directly impacts culture, ability to recruit and retain good people, and drive performance - all of which influences customer perceptions, revenue, and profits. In the franchise industry, often times, multi-unit franchisees do not intuitively view themselves as a family business owner. This misperception can and does have an impact on overall business success, sustainability, and value

Read the complete article on the Multi Unit Franchisee website

Continue reading
280 Hits

A New Succession Challenge: Private Equity

The automobile industry has encountered significant changes over the last 20 years. We have seen public companies come into the market. We have seen the dot-com balloon inflate and burst. We have seen banks offer money to anyone with an IQ over room temperature and then call loans from the smartest, brightest and most successful in our industry. We have seen franchises devalued, nuked, given away and arbitrated as manufacturers went belly up and gave up control to our government. And here we are with stock market returns struggling to beat inflation and the investment world recognizing that auto dealerships are a good buy at six, seven and eight times adjusted earnings.

Continue reading
1347 Hits

How Do I Become an Effective Cross Generational Coach?

There are multiple generations in almost every organizational and business setting. If not at start up, then during transition periods of one kind or another. Older generations don't get younger ones; and younger ones don't get the older ones. Are you puzzled by why it always seems to be that way?

Continue reading
1520 Hits

Working Towards Working Together

When I first met my wife, Patricia, I was head over heels in love. Although, just a few years after our honeymoon, our marriage appeared to be less than ideal. However, we decided we wanted to be married so we found a counselor to help us understand and deal with the good and bad we brought to our union. After 30+ years of counseling we have a marriage that isn't perfect but one that is getting better every day.

Continue reading
1487 Hits

Fifty-Fifty, Not So Nifty

As a business succession planner, I encounter the full gamut of dealership business structures, Regular C corporations, S-corporations, partnerships and limited liability companies. I have had clients owned by public corporations and foreign corporations, and even one client who boasted he was the only sole proprietorship dealership in the United States. That relationship was short-lived - he was not pleased with my response.  

Continue reading
1860 Hits

How to Attract and Retain High Performers for Your Business

  • Do you have key employees who are telling you they want a piece of the action – an ownership interest in the dealership? 
  • Do you have key employees whom you want to retain in the dealership over the long term? 
  • Do you have highly compensated employees who are getting killed income tax-wise and want to know what you can do to help? 
  • Are you looking for ways to create greater incentives for your key employees? 

If you answered yes to any of the above questions, then you should consider utilizing some type of non-qualified deferred compensation plan(s) in your dealership. The Fortune 500 companies have been using NQDC plans for years to attract and retain their key employees and so should you. 

Continue reading
1630 Hits

The Value of Pre-Marital Agreements

Building a healthy, strong, and long-lasting marriage requires a lot of hard work. Good marriages don’t happen by default, they require intentionality and equality of contribution and effort by both spouses. Unfortunately, even the best of relationships endure many significant challenges. As one marriage psychologist said, “Marriage is really, really, really, really, really hard work for about the first 20 to 25 years…and then, it starts to get kind of good.” This may be an overly negative statement, but it reflects the reality that establishing the foundation of a long-lasting, healthy, and fulfilling marriage is not easy.

Continue reading
1399 Hits

Business Structuring and How it Can Impact Long-Term Goals

Business structuring deals with the mechanical aspect of how your business operates. The structure of your business has a direct impact upon items such as business taxation, control of business ownership, gift and estate tax on business transfers, and shareholder access to cash flow. As a business owner, it is critical that you or an experienced advisor understands the details relating to corporate structures and agreements between directors, owners, and key managers as they have a significant influence upon your business’ success and longevity.

 

Continue reading
2239 Hits

What You Should Know Before You Make Someone a Partner/Owner

If you haven’t been in this situation yourself, you probably have one or more friends who have.  They  have rewarded a  highly productive employee by making him/her a non-family partner (NFP) in a family owned business.   

Maybe you’re about to do the same thing yourself.  That’s big of you, really; and some people might actually appreciate the honor you’re bestowing on them. Others will probably think “It’s about time!”  And then, it gets worse.  The loyalty formerly shown to the organization seems to vanish, and the imperial partner syndrome emerges. 

Continue reading
1529 Hits

Struggling with Your Business Partner? 5 Ways to Find Common Ground

If you happen to be an active majority partner in a business, you may sometimes find yourself struggling for alignment with your minority partner or partners, especially if the minority partners are also involved in the business.   They assume because they have some percentage of ownership that they have the positional power to make unilateral decisions that move the business in a direction that suits their liking, regardless.  In short, they throw their “weight” around; and they pay little attention to the unintended consequences of doing so.

 

Continue reading
2265 Hits

50/50 Partnership Not Working Anymore - How to Resolve While Still Maintaining a Working Relationship

Partnerships are curious animals.  Two or more people start off with a great idea; decide there’s some synergistic benefits in working together; shake hands; and start off with the very best of intentions.  And then everyone lives happily ever after.  

Continue reading
4100 Hits

The Pope and the Catholic Church: A Succession Planning Case Study

 As I embark on my first article as a member of The Rawls Group, I figured I might as well throw myself into the deep end and entertain a topic that is undoubtedly surrounded by controversy: religion. The recent changes occurring in the leadership of the Catholic Church have not only fascinated me, but have also led me to ponder how such a significant change to this steadfast organization will affect the group as a whole. And I am not simply talking about those directly involved in the selection of the next leader of the Catholic Church; I’m also referring to the millions of citizens around the world that look to the Pope for guidance, purpose and support. 

Continue reading
1652 Hits

Are You In Constant Conflict With Your Partners - When To Know You May Need Help!

When I first met my wife, Patricia, I was head over heels in love. We came from similar backgrounds, had countless common interests, and our relationship was storybook magic. However, just a few years after our honeymoon, our marriage appeared to be less than ideal. With the advent of children and the increased time demands of work, no longer was my yin totally harmonizing with my wife’s yang. After significant soul searching we recognized that marriage is not a natural state; we also decided that we wanted to be married and that we were willing to work at being married. So we found a counselor to help us understand and deal with the good and bad that we brought to our union. Now, after 30+ years of counseling we have a marriage that isn't perfect but one that is getting better every day.  

Continue reading
4259 Hits

Change In Heart, Leads to Change in Plans - Is Your Succession Planning Strategy In Alignment?

Another situation I dealt with recently during an annual review of planning involved what I refer to as a “five minute bomb.”  Five minutes before the end of the meeting with a client, when I’m preparing to leave and go home, he says to me “oh, there’s something else I forgot to tell you” and it is inevitably an intense subject that requires much more than five minutes to handle.

Continue reading
1267 Hits

Please! What Is Succession Planning and Why Do I Need to Involve Outsiders?

The process of succession planning is significantly different for a privately-held and/or family owned business compared to a publicly held company.  For our purposes today, we’ll be dealing with the privately held because most businesses fall into that category.

Depending upon your advisor’s field of expertise, the definition of succession planning takes on a variety of meanings.  For some, succession planning is all about wills, buy/sell agreements, trusts, and estate planning.  For others, it’s about business performance and for another set of advisors, it’s all about family harmony.

Continue reading
1452 Hits

Understanding the Cycle of Addiction

Do you have any bad habits? If your immediate response was no, then you might consider that you have a bad habit of lying. The truth is we all have bad habits and sometimes those habits can turn into addictions. In my work with family businesses I frequently interact with people who are addicted to something. Sometimes it’s a functional addiction and sometimes destructive.

Continue reading
1454 Hits

How and When to Turn Over or Sell the Reins

Today, let’s talk about how you set the stage for a graceful and timely exit.  Depending upon your disposition of the business – sale, family transfer, outside management - some of the steps listed below may take anywhere from a few years to a couple of decades to implement effectively.  So, the sooner you begin this process, the sooner you will be able to begin climbing other mountains. 

Continue reading
1452 Hits

Think You're Too Young To Begin Succession Planning - What You Should Know That May Change Your Mind

Translation: “I am bullet proof and have no intention of dying prematurely”, “I am not interested in enhancing business productivity, profitability and teamwork”, “The business is all about me” and “I am not interested in protecting the value of my business and the welfare of my family”. Do you realize that when you state you are too young to begin succession planning this is what you are actually saying? Think about it!

Continue reading
1284 Hits

Have You Fallen for One of the Biggest Succession Planning Misconceptions?

How many of you actually believe that you indeed “have it all done” when it comes to your business succession plan? Come on, be truthful. I know there are some of you who believe in your mind’s eye that you have done all you can to successfully transition your business. Many of your predecessors felt the same way you do, but the statistics speak for themselves: approximately 33% of family owned businesses succeed from the first generation to the second and approximately 10% successfully make it from the second generation to the third. The truth is, when it comes to business succession planning, there is no such thing as “having it all done” just like there is no such thing as achieving perfection. There is always something else to do!

Continue reading
1674 Hits