TheTop Nine Reasons Family Businesses Fail

With Wayne Rivers

 of

Family Business Institute

The Top Nine Reasons Family Businesses Fail And The Eight Building Blocks for Creating a SUSTAINABLE Closely Held Company is a groundbreaking work based on decades of working with family and closely held companies.  Wayne has created a “how to” for not only surviving but PROSPERING over the years.  This discussion will challenge you to objectively assess where you are as a business and to push through the barriers, which keep you from reaching your dreams.  You’ll learn about:

• The top nine reasons family businesses fail

• What steps to take to survive the recession

• The MAGIC BULLET solution for simultaneously achieving better family harmony AND greater business success

• Why having a clearly defined vision is vital

• Why self-management is a challenge for the majority of entrepreneurs – and what to do about it

• Why it’s so hard to attract and retain talented people

• How to develop marketing and sales systems for taking your company to a new level

• How to better manage your business family to achieve maximum harmony

• Why “running the business” is a much more important element of success than you think it is

Read an Excerpt from Wayne’s Book:

The Top Nine Reasons Family Businesses Fail And The Eight Building Blocks for Creating a SUSTAINABLE Closely Held Company

Wayne Rivers: Wayne is the co-founder and President of The Family Business Institute, Inc.  He has

authored three books on the subject of business families:  The Top Nine Reasons Family Businesses Fail – And the Eight Building Blocks for Creating a SUSTAINABLE Closely Held Business, Prescriptions for a Healthy Family Business, and You Don’t Have To Die To Win – Success and Succession For Family Businesses.  Wayne has appeared on the TODAY show, CNN, MSNBC, CNBC, "BusinessWeek: WEEKEND" and on the Retirement Living Network.  He is also a Wall Street Journal Expert Panelist.

Wayne has also been honored as a Fellow of the Family Firm Institute with the designation of ACFBA – Advanced Certificate in Family Business Advising.

Join The Network of Family Businesses for this Webinar on Tuesday, September 22, 2015 at 11:00 AM Eastern Time, with Wayne.

                                                                        For additional information email: steve@netfamilybusiness.com

Can a Business Exit Plan Make You Happy?

With Emrich M. Stellar Jr., ChFC, CLU, CBEC

 of

Stellar Advisor

Owning and running a successful privately-held business is a constant challenge that is full of obstacles and opportunities. It is pretty well understood that putting your business (and personal) plan down in writing tends to increase the chances of achieving them. However, what is less often discussed is how you might feel when you apply a high level of discipline to planning the future. If, in fact, you value the freedom and financial benefits of owning a privately-held business, then it is also likely that you place a high emphasis on not only what the business can provide to you but how you feel about the business and its future.

By thinking ahead Business Owners and Business Families can make a significant impact for their heirs. Families need leadership and creativity through a facilitated conversation about multigenerational planning to learn their options for business and family governance.

We have all seen the decisions that can create a “Family Story” or a “Family Secret”. Achieving security, harmony, and a great “Family Story” is a major goal for the hard work that needs to be done.

With all the various attributes of what may or may not make a business owner happy, where does disciplined planning fit in?

Read the White Paper – Can a Business Exit Plan Make You Happy?

Emrich M. Stellar Jr., ChFC, CLU, CBEC: Since 1989 Emrich has been practicing the “Serve

First” philosophy of seeking to understand before seeking to be understood. Emrich and his team provide leadership and creativity in the areas of Business, Estate, Wealth Management, and Charitable Planning. His commitment to client objectives starts with understanding the aspirations his clients have for their families and businesses. He assesses and maximizes clients’ unique abilities to help solve those “3 AM Questions” thereby enabling them to add real value to the process.

Credentials and Experience are important, but Emrich often refers the old adage, “You won’t care how much I know until you know how much I care.” This is why he sees his career as a “calling.”

Join The Network of Family Businesses for this Webinar on Thursday, August 27, 2015 at 11:00 AM Eastern Time, with Emrich.

                                                                        For additional information email: steve@netfamilybusiness.com

Ghosts and Secrets in the Family Business

With Gerard J. Donnellan, PhD

 of

Big Leap Family Business Advisors

"Each family has its own colorful and compelling history. Buried deep in that history, many times, are family secrets, the "ghosts of the past". These ghosts, be they the long-shadow of the founder, lost, disinherited or forgotten members of the family or long-decayed family values and culture, have unseen and powerful effects on the family system. These spirits take many forms and guises, but they all share one common element: they hold power and sway over otherwise mostly normal people."

"These "hauntings" make themselves present in un-ending family conflict, lost riches and the decline of the family business."

Read the White Paper – The Haunted House – Families and their Ghosts

Gerard J. Donnellan, PhD, is an organizational consulting psychologist and family business advisor. He is trained as a Clinical Psychologist and Psychoanalyst.

Gerry works with owners of closely-held businesses and senior level leaders on issues such as succession planning, development of senior management, and family business issues. He provides executive coaching and assessment for professional development. He is an adjunct Professor at Boston College, where he teaches Organizational Behavior. He developed and introduced the first family business course in the MBA at Brandeis University International Business School. He has held university faculty appointments at Harvard Medical School and the City University of New York.  He holds the Advanced Certificate in Family Business Advising by the Family Firm Institute (FFI) and is a Fellow of FFI. He is a frequent presenter at FFI conferences.

He is the founder of Big Leap, a company which utilizes innovative techniques for organization development in family businesses, public companies and non-profits.

His widely acclaimed book, Who Will Drive the Bus? Guidance for Developing Leaders in the Family Enterprise (on Amazon), is used by families and their businesses worldwide.

Join The Network of Family Businesses for this Webinar on Wednesday, July 22, 2015 at 11:00 AM Eastern Time, with Gerry.

                                                                        For additional information email: steve@netfamilybusiness.com

Guiding A Family Business Through Change

With Kiki McShane & Chris Fucci

 of

FarVision

Regardless of the business you are in, or the transitions you experience, there are three key building blocks to creating optimum solutions to move forward, navigate change and lead with an eye toward long term success; Purpose, Vision and Mission. These foundation building blocks serve different roles AND are interdependent. Purpose, Vision and Mission are instrumental in developing a creative, caring and committed culture vital to effective leadership and business success.

As a business grows and moves through its life cycle, there is the risk that the corporate culture may lose its understanding of Purpose and that the understanding of the founder’s intention for starting the business may become blurred.

Purpose Vision and Mission are vital to forming and leading a culture that is creative, committed and caring.

Read the White Paper – Design a Unique Purpose, Vision and Missionfor Successful Transitions

Kiki McShane: Kiki is the President/Managing Director FarVision.

As part of the FarVision team, Kiki works with leaders of Entrepreneurial companies, helps design core business teams, facilitates the effective use of creative conflict and increases an organization’s capacity for healthy, planned growth. Kiki began her career in business consulting and organizational development with the Adizes Institute in Santa Monica, CA. She then co-founded her own firm, Corporate Transitions, Inc. in Miami, FL. where she worked with numerous internationally renowned companies and several YPO chapters, facilitating their strategic planning retreats. Kiki received a BA cum laude, from Boston College in Spanish and Secondary Education and her MA from Texas A&M University, in Education/Psychology.

Chris Fucci: Vice President FarVision.

Mr. Fucci began his professional career in his family’s real estate development company in 1974 as an entry-level associate and reached the position of president and majority shareholder in the mid-1980s. Over the next 20 years he successfully reorganized the family owned companies and sold them in 2000. Chris is currently the President of Chris Fucci Associates. Chris has consulted with a number of independent and family owned businesses, structured mergers and acquisitions and led successful financial restructuring and business sales. He is currently on the Assembly of Overseers for Dartmouth Hitchcock Medical Center and a member of the Castleton College Gridiron Club. Chris received his BA cum laude from Boston College in Political Science.

Join The Network of Family Businesses for this Webinar on Thursday, June 25, 2015 at 11:00 AM Eastern Time, with Kiki and Chris.

                                                                        For additional information email: steve@netfamilybusiness.com

It's Time To Defuse Your Buy-Sell Agreement

With T. Eric Blocher &  Greg M. Lowe

 of

McKonly & Asbury

Many businesses operate under the terms of a buy-sell agreement. Chances are that, as a business owner, you should have a buy-sell agreement. It is a prudent business practice. But here is the catch, most buy-sell agreements don’t work or won’t work as intended. The reasons why they don’t work are varied but typically include one or more reasons. A buy-sell agreement is usually ratified when a business begins. It is filed away and often forgotten.

Over time, the business, its ownership, purpose, and operations can change. The buy-sell agreement is rarely amended to include changes addressing these issues. The good news is that it is not too late to fix your buy-sell agreement!

Read the White Paper – Buy-Sell Agreements: IsThere a Storm on the Horizon?

Eric Blocher is a Principal with McKonly & Asbury with over 24 years of public accounting experience. He has oversight responsibilities for audits, reviews, and compilations for a wide range of service providers. As the leader of the valuation team, Mr. Blocher has over 17 years of business valuation consulting experience. He has been instrumental in developing a successful valuation service providing valuation and litigation support services. He has valued more than 150 closely held businesses in various industries including: professional services, real estate, manufacturing, retail, food services, automotive dealerships, and others.

Greg M. Lowe is Chief Operating Officer with McKonly & Asbury, overseeing the operational management of the firm. Most recently, he served as President of the IT services division of Intellimark/Technisource, a large national information systems consulting and outsourcing company, with over 600 employees and offices in multiple states. Prior to joining IntelliMark, Mr. Lowe held several leadership positions in sales and service with companies in the information technology and packaged foods industries.

McKonly & Asbury is a current corporate sponsor of the S. Dale High Family Business Center at Elizabethtown College

Join The Network of Family Businesses for this in-depth Webinar on Thursday, May 28, 2015 at 11:00 AM Eastern Time, with Eric Blocher and Greg Lowe.

 For additional information email: steve@netfamilybusiness.com

Entitlement and Succession: The Key is Communication

With Phil Clemens, Chairman

Clemens Family Corporation

Communications in family businesses are often tough.  We generally go to extremes – we tell way too much or we say nothing.  This is especially true when it comes to two critical subjects – Succession and Entitlements. 

With Succession a lot is assumed by the Nxt Generation – and most times it is wrong.  The same is true with Entitlements.  In most cases, the younger generation assumes they are entitled to many things, one of which is to be the next leader of the business.  The older generation assumes that their children clearly have received the messages that they aren’t entitled to anything and that certainly includes who will lead the family business in the future.

Communications are critical to have a smooth running family business.  My experience is that the older generation think they are communicating; the younger generation knows they aren’t and neither will tell the other.  Thus assumptions go on and on and on.

In this session Phil will provide ideas on how to communicate more effectively between generations and build healthier family businesses for the future. 

Phil has spent his entire working career with the family business. He began working in the legacy

business, Hatfield Quality Meats, on a part time basis while going to school. He began his full-time career in 1967 while attending Peirce College. His career has allowed him to work in all areas of the business. He began on the clean-up crew and worked his way to be the CEO of the Company. He began both the Data Processing and Human Resource Departments. He spent 20 years of his career in Human Resources and 7 years as CEO and President of the legacy business. The Corporation has annual sales of $750 million, employs about 2,200 people, and markets products all over the US with a concentration in the northeast part of the US.

Active in his community and other organizations, Phil serves on many non-profit boards and boards of several family owned businesses

Phil is a national and international speaker on family business issue and has a passion to teach leadership skills to next generations.

Join The Network of Family Businesses for this exciting Webinar on Thursday, April 16, 2015 at 11:00 AM Eastern Time, with Phil Clemens.

For additional information email: steve@netfamilybusiness.com

Why Does Your Family Business Exist?

I recently asked a family member working in their Family Business, 

              “Why does your Family Business exist?”

The response was a long period of silence, followed by, “I never really thought about it, it was always just here!”

If you were to stand at the door of you Business and ask each Family member (and Non-Family employee) that goes in and out of the Business, how will they answer that question?

Why is this question so important?

As a Business Family – Why does your Family Business exist?

In a Business Family, the measuring stick or metric of success must be determined and considered by all in the Family and in the Business, in order to understand underlying motivations and decision-making. Increasing satisfaction in attaining the results of the metrics will increase morale, commitment, and overall satisfaction in the business and in the family.

Why are we in Business together?

                                    A Checklist

            1. Our goal is to just pay our bills.

            2. Our goal is to provide employment for all family members that need a job.

            3. Our goal is to harvest the business and cash out.

            4. Our goal is to build a family legacy that has an Entrepreneurial mindset.

            5. Our goal is to build a family legacy and pass the business to the next generation.

            6. All in our family have identified & connected with the goals&  objectives of the family.

            7. All in our family have identified & connected with the goals & objectives of the business.

            8. All in our family have internalized the vision of our family.

            9. All in our family have internalized the mission of our family.

            10. All in our family have internalized the values of our family.

Is it Possible to Keep Everyone Happy and Productive in a Family-Owned Business?

With Paul S. Reback

Recognizing the vital role Family-Owned Businesses play in America's Financial health, a mistake that even the most successful family enterprises make is that they get stuck doing things the same way even when circumstances necessitate change. Another problem is that the company’s hierarchy typically reflects the family’s pecking order at work in the same way it does at home. For instance, whoever is seen as the head of the household also wants to tell everyone else what to do at the office. Ditto when it comes to how the bully brother, the passive aggressive sister, or the perennially insecure middle child interacts in the workplace.

While every story is different, the fighting and feuding that often results tends to revolve around one of two things: money and personalities. Regardless of the scenario, these conflicts, if left unresolved, can blossom into full-blown warfare in the business setting.

There are five areas that are among some of the most common problems affecting family businesses today. The better you understand them, the better you will be able to use them to your advantage.

Paul S. Reback, President of Capital Estate Advisors, Inc. is a Registered Investment

Advisor with over 30 years’ experience successfully serving clients in the financial services industry. He received his designation as a Certified Financial Planner from Adelphi University. He has been a guest lecturer at the American Institute of Certified Public Accountants and teaches continuing professional education courses for CPAs. Paul has appeared on various radio and television talk shows, including Bloomberg Television, speaking on finance, investment and estate and retirement planning. He has also given many public talks and seminars with attorneys, stress management experts and numerous other client advisors. He is a dynamic and entertaining speaker adept at making complex financial choices easily understandable.  He enjoys helping people make sure they meet their goals and that they will never outlive their money. 

Join The Network of Family Businesses for this in-depth Webinar on Thursday, March 26, 2015 at 11:00 AM Eastern Time, with Paul S. Reback.

                                                      For additional information email: steve@netfamilybusiness.com

A Focused Look at a Few Key Buy-Sell Agreement Provisions

With John Reed, Esq. of Barley Snyder

and

Eric Filippone MT, of The Glatfelter Agency

Rather than a broad-brush overview of a Buy-Sell Agreement, we will focus on and have an in-depth conversation regarding three key provisions in a Buy-Sell – Triggers; Valuation; and Funding.  The conversation will focus on different options; discuss when such options are appropriate and the benefits of each approach.

John T. Reed, Partner, Barley Snyder: John is the chair of the firm's Business Law

Group and Family Business Law Group. John's primary practice is comprised of two separate but related areas: (i) counseling family owned and closely held businesses; and (ii) buying and selling businesses, and in many cases, acting as a general counselor for the business on an ongoing basis after the transaction is completed.

Barley Snyder is also one of the founding members and a current corporate sponsor of the S. Dale High Family Business Center at Elizabethtown College. John leads the firm's efforts at the Center and is a frequent speaker and a regular resource for the CEO Roundtable and Emerging Leaders Groups at the Center.

Eric M. Filippone is Vice President, Life Insurance for The Glatfelter Agency. He joined the firm in 2012. Eric graduated with a bachelor’s degree in Accounting from

LaSalle University and holds a Master of Science in Taxation from Philadelphia University. He has more than 20 years of combined experience in the accounting and Life & Annuity industry. He is a candidate for Certified Financial Planner at the American College.

The Glatfelter Agency is a current corporate sponsor of the S. Dale High Family Business Center at Elizabethtown College and is the local retail division of Glatfelter Insurance Group. The Glatfelter Agency is a full-service agency providing a wide array of commercial and personal insurance products, benefits packages, and risk management solutions to more than 6,300 clients in Central Pennsylvania and Northern Maryland.

Join The Network of Family Businesses for this in-depth Webinar on Thursday, February 26, 2015 at 11:00 AM Eastern Time, with John Reed and Eric Filippone.

                                                      For additional information email: steve@netfamilybusiness.com

Why You Should Write Your Family Business History

With Rachel Landry

For the present

The action you take today will certainly generate immeasurable results well into the future. But more than that, this action can generate measurable results today. This session will explore the immediate benefits of documenting your legacy, and the long-term gains of doing it sooner rather than later. In addition to your future generations and family members, there are other possible audiences for your business story. We’ll identify a number of them together, helping you understand how you can use a product like this today to boost your business.

For the future

Sometimes we don’t know we need something until it’s handed to us, and once we have it, we suddenly see and feel its value and we cherish it with all our hearts. As the current leader of a multi-generational business, you may feel you have the added responsibility of trying to anticipate what the next generation of leaders may need, and preparing it for them, whatever it may be, so they never have to wonder or guess. In a family business one of those things, possibly the very first and most important of those things, is the legacy.  The progressive story of the business from the day it started to how it got to where it is today, with special emphasis on the values and dreams of the person or people who built it from merely an idea or need, to this thriving modern entity.

That’s only one example of the potential value your documented story holds, the appreciation that will surely come to those who read it years from now, or decades from now, when you or other family members who know the story firsthand are no longer around to tell it.

Rachel Landry – A Writer for Life 

She was praised by teachers as a talented essayist. She had hundreds of pen pals. She spent hours writing journal entries in the sanctuary of her tree house. But in those days, writing held little promise for a girl from a small Canadian fishing village. Besides, Rachel Landry had other dreams. She came to Toronto in 1990, intent on success in film production, and accumulated an extensive list of Script Supervisor credits. In 2007, seeking the freedom to be home with her daughter, and with the web now offering a limitless market, she called upon her lifelong passion for writing. Rachel has since been the author of short bios and profiles for hundreds of executives, artists and musicians, politicians, professional athletes, and celebrities.

Join The Network of Family Businesses for this challenging Webinar on Thursday, January 22, 2015 at 11:00 AM Eastern Time, with Rachel Landry.

For additional information email: steve@netfamilybusiness.com

Merry Christmas from SKM Associates!

It has been an exciting year for us: we began working with several new business family clients, we

continued serving business families that we have known for years, and we enjoyed navigating additional opportunities for my son, Aaron, and I to work together.

Family businesses continue to be a lifeblood of our economy, and we consider it a privilege to walk along with families navigating the myriad of issues that families in business face.  We couldn't agree more with Ted Clark of Northeastern University's Center for Family Businesses: "Run well, family businesses can be some of the best.  They invest for the long haul, offer long-term employment, and contribute to their communities."

We are thankful for the opportunity to work with great folks like you.  We are able to do what we do because of referrals from people like you.  We don't take those referrals lightly, and we appreciate you thinking of us when we could be helpful to you or someone you know.

Merry Christmas to you and your family.  We wish you the best in the new year.  

Please feel free to reach out to us.  We would love to hear how things are going.