pornn

Why Use a Revocable Trust

In my travels around the country working with family owned companies, I am always amazed at the significant and very public role these entrepreneurs play in their communities. Because of this we often recommend the use of revocable living trusts as a part of their succession planning environment. I’m also frequently amazed at the pushback on this powerful planning tool that we get from local attorneys. In one recent situation, our client’s attorney told our client that we did not understand this particular state’s laws and that probate in this state is not a big deal.

Continue reading
2059 Hits

Revocable Trust - It's Now or Later

Having heard, on multiple occasions, from local attorneys that probate is not a big deal, and knowing from experience that, indeed, probate is a big, fat, hairy, expensive, time intensive, insensitive, and emotionally challenging deal, I have asked these attorneys to share with me, from their perspective, just one compelling reason to not use a revocable trust.  Here are the two most common responses I have received:

Continue reading
1783 Hits

How to Overcome the Family Business Curse - Enablement

I am frequently asked – “What is the biggest problem that family businesses face?” The ugliest problem by far is what I call The Family Business Curse: ENABLEMENT or FAMILY BUSINESS WELFARE which can be described as - able bodied, capable minded family members active or inactive in the business who for any number of excuses are not contributing, but are provided ongoing financial assistance/subsidy to keep their standard of living up to par with those that are sacrificing to make the business work.

Continue reading
1688 Hits

Family Business Advisor Teamwork

Family businesses rely on teamwork. The family infrastructure sets the inherent expectations and role model (good or bad) for teamwork to management and employees. The family team concept should also apply to their advisors. Most families base their advisor decisions upon relationship, often times with tenure taking blind precedence over the quality of service.  Although I acknowledge that the average family business is increasing in sophistication, I continue to see abuse and malpractice caused by predators who are seeking to take advantage of the natural tendency of family business leaders to rely upon relationships to make important decisions. Unfortunately there are far too many wolves wearing sheep’s clothing.

Continue reading
2378 Hits

"Family" Business is Not a Bad Word

As I reflect on 38 years of experience in business succession planning I can confirm that there was a time when being categorized as a “family” business was not a compliment. The term was derogatory, considered synonymous with “mom and pop” business. This stereotyping had obvious exceptions but was more right than wrong with respect to pets laying around with assumed rights superior to visitors or employees; kids entering the business out of school as an expert because they had worked a few summers and then coronated with a vice president title, a parking place and a tricked-up office.

Continue reading
1949 Hits

Tips for Effective Communication

One of the reasons for going into succession planning is to communicate and present future expectations. Each of us has a very different physical and emotional map of the world. We experience the physical world through our senses – what we see, hear, touch, taste, and smell. These physical discoveries outline the territory. The emotional world of values and beliefs provides the filter system that help create a map for getting through life on a daily basis

Continue reading
1346 Hits

How To Define Your Vision - First Comes Confusion, Then Comes Clarity

Last week, we began talking with a client who is just beginning the succession planning process.  His comments were telling:  “We have been talking about this for years; and until now, we’ve managed to avoid dealing with some of these questions.  We did not like pushing ourselves so far out of our comfort zones.  It was uncomfortable; it was disorienting; it was confusing.  Last week, it all began to come together; and now, we wonder why we waited so long.”

Continue reading
1425 Hits

Successors - 7 Tips for Taking Over the Reins

Every organization goes through some form of transition.  At computer giant HP, the hook has been used twice within the past ten years on leaders who seemed ready but somehow managed to snatch defeat from the jaws of their personal victories.  How can you avoid having something like that happen in your own organization?

The answer comes from what might first seem to be an unlikely source.  In 2006, the World Health Organization began using surgical checklists to better manage the risks associated with surgical procedures.  Looking outside their own medical fields, the WHO team borrowed some of the best practices used in the aviation industry.

Continue reading
1818 Hits

Successor Development: 5 Key Indicators for Evaluating a Successor

Once there are available successor candidates, business owners should take a less instinctive approach to selecting a successor from the candidates by evaluating some key traits. We refer to these traits as the 5 Cs: Character, Confidence, Capability, Competence, and Community.

Continue reading
1475 Hits

Successor Development: There Has to Be One Available

Business owners frequently select their successors with an intuitive approach, or based on experience-informed “gut” feel. Most of the time they’re pretty good at it, but when it comes to evaluating a successor for a family business, the family relationship dynamic inevitably clouds a business owners evaluation. There are emotional entanglements that get in the way of their well-grounded intuition. So to help business owners be less instinctive and more intentional and consciously competent in selecting a successor, there are some key indicators to look for in identifying a successor for your business.

Continue reading
1618 Hits

Wipe Out Enablement Attitudes - Rights Versus Responsibilities

No matter where you stand on the immigration law, one thing is painstakingly clear. Our country is obsessed with protecting everyone’s rights with little to no concern for their responsibilities. Somehow we seem to suffer from affluence guilt that leads us to feel it is our responsibility to take care of everyone on the planet, and perhaps more accurately, that everyone on the planet has a right to be cared for by the U.S. 

Continue reading
1891 Hits

Move Beyond Your Limits - The Imaginary Power of "What If"

Last Saturday, four of us took in “Letters to Juliet”.  It turned out to be much better than I had expected; and a few of the lines reminded me how powerful two simple words can become when they are placed right next to each other.  As the title suggests, those words are “what” and “if”.

For the moment, clear your mind (and your heart) of everything except those two words.  Use them to begin a string of sentences.  The sentences can range from the ridiculous to the sublime.  Here’s what I mean:

Continue reading
1475 Hits

Why Do You Have to Market Business Succession to the Family?

How much cash does your business invest in marketing?  No, not marketing to your customer base.  I mean how much do you spend on marketing to your employees and to your family. If your answer is anywhere from “Where did you buy that tobacco?”  to “Nothing.”, then you need not be surprised if your employees and your family members are somewhat less than engaged in your succession dream.

Continue reading
1393 Hits

Can You Be Too Optimistic for Your Own Good?

What do you think?  Can you be so optimistic that you are completely out of touch with reality?  Can you believe so strongly in your own dreams and ambitions for yourself, your family, and your business that you just do not “get it”?

Just a few days ago, I discovered that one of Frank Sinatra’s trademark songs from a few decades ago is now a ringtone for cell phones.  Written by Sammy Cahn and Jimmy Van Heusen, “High Hopes” is all about the need to believe you can overcome great odds against success. 

Continue reading
1370 Hits

How to Inspire Your Family With Your Succession Planning Goals

A classmate named “Howie” had a signature response to almost every exhortation that was meant to move him from one course of actions to another.  No matter how gifted the speaker or the written communication, Howie could be counted on to raise a simple question:  “And I should care because . . . ?”

We often believe that the power of what we say and/or do has the immediate impact of creating a compelling interest to do, buy, or follow.  When it does not, we generally think that others “just don’t get it.”  That is probably true.  But why do they “not get it”?

Continue reading
1353 Hits

What Is a Family Business?

I have always believed that family has a built in advantage in business. From my perspective the natural behavior of family provides both governance and teamwork benefits. Unfortunately some families leverage their natural behaviors better than others. The wide variation of performance among family businesses brings up the question, “What makes some family businesses better than others?”

Continue reading
1470 Hits

I've Sold My Business, Aren't I Done With Succession Planning?

Recently I was invited to speak to a group of successful business owners about the various aspects of succession planning (what I refer to as the Succession Matrix). The Succession Matrix consists of ten interdependent factors that business owners must successfully address to improve the odds that their business will successfully make the transition to and through the next generation of owners and managers. Addressing these factors is important regardless of whether you plan to sell your business or plan to keep it in the family. Often times these critical factors are ignored and unfortunately result in the business becoming another casualty.

Continue reading
1553 Hits

Successor Development - How Good is Good Enough?

I was recently in a meeting with a son of a business owner, who was the identified 3rd generation successor leader to his family’s business. We were talking about some communication challenges he was having with his dad. His dad is a larger than life kind of guy, one whose shoes are hard to fill.  So, I asked, “What seems to be causing the difficulties?”

Continue reading
1689 Hits

Is Your Family a Liability to Business Value?

“We want you to be part of our family” is the common accolade. “We want to think of you as one of our children and we hope you feel the same. Make yourself at home and we will treat you like one of our own.”

To be considered a part of the family is a compliment in any social setting. You have standing. You can be counted upon and you can expect the benefit of the doubt. The more perceived social, political or financial power imputed to a family, the greater the compliment. Within the family business realm, being told you are a member of the family generally creates an immediate feeling of prestige reflective of the depth and breadth of the family’s business.

Continue reading
2015 Hits

Aging Parents? What is Guardianship and Why You Should Do Everything to Avoid It

Many of us have moved from home and have ageing parents at a distance. This distance does not impact our love or concern. We stand ready to fly in and provide care and attention in the event of the inevitable needs or challenges associated with ageing.  Beware of vermin lying in wait for good intended children endeavoring to attend to parents at a distance!  Specifically, as I have personally experienced over the last six years with my Mom and Dad several states away in N. C. from which hopefully you can avoid problems associated with long distance guardianship or probate. 

Continue reading
1608 Hits