ENSURING A LEGACY FOR BUSINESS OWNERS

Our next Webinar is scheduled for July 18, 2012 at 3:00 PM EST, with Karen Benz, MS and Mark Lee, CPA, MBA. Mark Lee and Karen Benz are founders of Business Legacy Consulting, Inc. providing exit planning and business consulting services to small to medium size business owners.

This intense webinar will explore the many risks associated with not planning in advance for leaving the business.  The issues include:  not meeting your business, family and personal goals; selling your business for less than it’s worth; family in-fighting and discord; transitioning at the wrong time; and not having a successor developed. Developing an exit strategy and exit plan can mitigate these risks significantly.

An exit strategy sets the context for the exit plan. Learn the key elements of an exit strategy and what the critical questions are, that must be considered. Answering questions such as: What do you want this transition out of your business to do for your life?  and What are your  personal/family obligations? are essential to the exit plan. 

Karen's focus is on business consulting, strategy and leadership development with an emphasis on improving individual and organizational performance. Mark has a passion for helping business owners succeed. They both bring extensive experience in business planning, evaluation of business systems and general management services.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

For additional information email: steve@netfamilybusiness.com

Preparing the Nxt Generation for Leadership

Many ‘young’ leaders today grew up in an environment where every child received a ribbon or trophy and some schools no longer declare a Valedictorian. Yet in the business environment, there is a need for people to step forward, be recognized and lead.

In the Business Family, the process of developing savvy business leaders with the ability to unify the family, nurture the vision, maintain focus, maintain energy, maintain persistence, and see the world from others’ perspective is increasingly critical for the family to build their transgenerational legacy.

Skills necessary to build the interfamily networking skills, the ability to act and speak with power, and how to influence others and build a unified team can be learned. If the Nxt Gen leader can learn that what is good for the family and the business is good for them, the family and the business will be poised for success.

“The Diamond cannot be polished without friction, nor the man perfected without trials.”

                        Chinese Proverb

What trials, experiences and opportunities are we creating or allowing for the Nxt Gen leaders to be perfected?

I would love to hear your story

Business Succession and Estate Planning: A Team Approach

The Network of Family Businesses has scheduled a virtual educational Webinar  on June 28, 2012 at 11:00 AM EST, with Rich Locher, Financial Advisor, and Philip E. Levin, Esq. This practical and ‘how to’ discussion will help Family Business owners better understand the various disciplines needed in the planning process. Gain insight into what are the key points a Business Owner needs to consider as they approach the planning process, how Business Planning Concerns impact Estate Planning Concerns, and how one selects the correct tools and instruments for Estate Planning.

Rich brings with him 30 years experience in the investment and financial planning industry. His strengths are in helping his planning clients understand the impact their financial decisions have on their quality of life- now and in the future, especially the outcome of delaying decisions regarding family protection, estate planning or keeping investments in line with long-term goals. 



Attorney Philip Levin has over 25 years of experience working with clients, along with their financial and tax advisors, to develop and implement comprehensive and tax efficient estate plans for individuals, business owners, and corporate executives. Phil believes that the key to creating an effective estate plan is to inform clients about their options under current law and create an integrated plan designed to make sure that the right property, distributes to the right party, at the right time, either outright, or through flexible trust planning arrangements. Phil has worked with many privately owned family businesses for the purpose of developing business disposition plans to protect the rights and interests of company shareholders, partners, and their families.

Don’t miss this critical and timely ‘How To’ topic.

Remember When?

Remember the days when business was done on a handshake?  When an individual’s word was their guarantee?

For families in business, their name is on the door or the delivery truck or the website. Their word is the family’s name and they are usually committed to supporting the communities.  Studies have shown that over a third of the 5.5 million family businesses in the United States have written codes for the behavior of the family and the business and consistently talk about those values and ethics.

It is often because of the relationships that were built by the founders or previous generations that family businesses continue to trust and respect each other and still do business with each other into the 2^nd or 3^rd or 4^th generations and beyond. The trust developed between generations doesn’t just happen: it takes work, it takes learning, it takes sharing information of what works and what could be done better.

To build a Family Legacy, the same is true. By offering a special promo code (join2012), The Network of Family Businesses is providing a special promotion to help Family Businesses keep the next generation in mind in decisions they make and the plans they develop. The sharing of information through Social Media and nurturing a Network for Nxt-Gen Internships will develop new relationships just like the relationships that were built by the founders and previous generations.

Building and nurturing relationships, networking with other Families in Business, providing resources for learning and sharing is how The Network of Family Businesses supports families as they strive to grow their family, their business, and build their family legacy.

Remember when your family knew who they could turn to?  Today, family businesses can turn to The Network of Family Businesses.

Visit the The Network of Family Businesses at: http://www.netfamilybusiness.com/ -- Promo Code: join2012

How Healthy is Your Business Family Culture

An effective Business Culture is built on trust, respect, values and                                                             the proactive engagement of the leaders.

In a Business Family an effective and healthy culture is nurtured and modeled by all members of the Family. Are you as a Family in Business creating a culture of excellence, of clear performance expectations, of trust and respect or are you creating a culture of mediocrity and ‘what’s in it for me’?

To build a culture of trust we need to ‘do what we say we will do’ and fulfill our commitments, display a willingness to rely on others and trust we all have each other’s, the family’s, and the business’s long term interest at heart.

The culture of the business will be based on the values of the family. The recognition and adoption of the values, guidelines, and way of behaving that a Family has declared should be communicated often, communicated in writing and will be communicated in deed and action.

When there is strong accountability, commitment and agreement to those values both family members and employees are able to focus on the family needs, the business needs and the long-term goals.

Raising Successors to be Adults and Peers - A Family Business Dynamic

As a parent we want to do the right things correctly.

As leaders of the family business we usually want to build the family legacy and have the business thrive for generations.

In a recent Webinar, Dr. Steve Treat itemized what he believes are the three highest corollaries’ for the successful transition of a family business.

1.     Family Meetings that not only discuss the business but the family.

2.     A family business leader that steps down and turns the business over to his/her successor in a timely fashion.

3.     Peerage.

In the webinar Steve outlined very specific steps for parents (steps that apply to children of any age) to build relationships and relate to their children as peers.

            The goal of Peerage and Adulthood:

                        - Building an identity of their own

                        - Having accomplishments of their own

                        - Learning how to think on one’s own

                        - Asserting oneself respectfully

                        - A clear understanding of roles

                        - No sense of entitlement

                       

The many ideas for the basic of growth parents included: to learn to be friends with our adult children, learn how to build a peer relationship with them, learn how to build mutuality, have boundaries, and build integrity. Steve states there is every reason to believe the family and the business will thrive.

This is a must see webinar for any parent.

It is an absolute must see for Business Families striving to build their family legacy.

The webinar is available in archives of The Network of Family Businesses.

The Family Dynamic of Family Business: Raising Successors to be Adults and Peers

The Network of Family Businesses has scheduled a virtual educational Webinar with Dr. Stephen R. Treat to gain insight and practical guides for this critical family dynamic. Steve is a Senior Therapist and former Director and CEO of Council for Relationships, the nation’s oldest and largest counseling agency. Dr. Treat continues to see clients, teach at Thomas Jefferson University, and consult with family businesses. He is an in-demand speaker, consultant and media expert. He can be seen regularly on television programs such as Philadelphia’s NBC10’s 10! Show, CBS3’s Talk Philly, and numerous local news programs. He has appeared on national television shows, such as the Today Show. He’s also been featured on numerous radio programs, and is often quoted for newspaper and magazine articles.

Understanding how to relate to your adult children as peers is a difficult task for any parent. Understanding the Family Dynamic of Family Businesses to Raise your Successor truly compounds the matter. The seminar is scheduled for Wednesday, May 9th, at 11:00 AM EST.

The dynamics of a Family Business are often not recognized and often overlooked or avoided. How does one go about raising the Next Generation to be Adults and Peers in the business. We often hear phrases that seem to indicate “Children” aren’t competent successors. Yet to build a family legacy we need to prepare the Next Generation as well as ourselves. How do we help the Next Generation build their own identity, think for themselves, and understand each individual’s roles.

Don’t miss this critical and timely topic.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

Business Family Values

Every Family has a set of Values. The Values may not be explicitly articulated, but they are present.

We may not always agree that those Values are good or bad, positive or negative, but each family has a set of Values.

In my work with Business Families it is very rewarding to nurture the dialogue as the Family struggles to articulate their Family Values. It is my belief the hard work of articulating the Family Values, specifically developing the non-negotiable Values for their Family, pays huge dividends the Family and the Business.

Roy Disney once said: “When your values are clear to you, making decisions becomes easier.”

I believe Family Values, articulated or not, are the glue that will carry a Business Family through tough times or be the wedge that will divide.

How has your Business and Family been strengthened by understanding your Family Values?

I would love to hear from you.

Collaborative Partnership Formed to Better Serve Business Families

Family businesses are the very fabric of global economies and their success is vital to any economic recovery. In the turmoil of today’s economic environment The Network of Family Businesses and Family Business United are collaborating to provide global, on-line business networks for families in business.

Family leaders frequently feel isolated as they face the issues of transferring the business to the next generation, building family unity, and growing the business. However, family business leaders are learning they need not walk this journey alone.

In an effort to support these Family Business leaders, Paul Andrews, President and Founder of Family Business United and myself state now there are collaborative platforms to nurture on-line dialogue, facilitate learning, educational resources and global networking.

Our websites www.familybusinessunited.co.uk and www.netfamilybusiness.com provide collaboration and a forum for dialoging with other families in business as well as confidential on-line forums to discuss critical questions families in business face.

This is an exciting step in continuing to provide a growing network of business families access to educational resources as they strive to build their family legacy.

HUMAN RESOURCE ISSUES IN A FAMILY BUSINESS "Even With Family, It Has To Be All Business"

Join Jacqueline Shulman, Partner - Labor Relations & Employment Law Department of Obermayer Rebmann Maxwell & Hippel LLP to learn and discuss how recent Employment Law changes may impact the Family Business. The seminar is scheduled for Thursday, April 19th, at 09:00 AM EST.

Jackie states many family business owners believe their "close-knit" Family approach provides them with protections not enjoyed by the typical private employer. This wrongly held belief could be costly on two fronts. Aside from poor morale, it could lead to legal fees being expended for failure to comply with specific laws (especially discrimination lawsuits).

Several of the topics Business Families need to be aware of will be covered in this seminar. There have been some confusing Media and Press reports regarding children of business owners working in the business and what their compensation may or may not be. How should the Family Business manage a Family Member who is not performing as expected? Three individuals have been “appointed” to the Labor Board; what implications will that have for Business Families?

Social Media is exploding; what should a Family’s Social Media Policy consist of?

Does every Family Business need a handbook and what should or should not be in that Handbook?

Don’t miss this critical and timely topic.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

What is Your Reputation

Several months ago I was talking with my son who is in the process of starting his own business. He was telling me about a project he was negotiating. One of the other individuals stated they should just commit to the item to get the project but knowingly would change the specs after the deal was done.
My son stated he was dismayed at that reaction and willingly backed out of the negotiations stating his reputation was more important to him than just getting this project. That decision, to be true to himself and his reputation cost him financially, and possibly, from a financial perspective, more than just this job.
The decision my son made, made me proud. Unfortunately it places a high financial burden on him. I am proud of the choice my son made. He really does know what is important.

That also got me to thinking about the reputation of Business Families.

How many times do we really stop to consider what our reputation is?

It is not that we don’t care, but we are frequently confused with getting the job done and our need to be effective by the world’s standards. Our reputation and the reputation of our Family’s Business is influenced by what we do, what we say, and if we can be trusted.

Our reputation is really who we are and what we will or won’t fall for.

It is people’s recognition of us, our family, and our business.

Take the time to sit down, truly assess what you want your “reputation” to be, what you want your family’s “reputation” to be and consider what you must do to establish and build that “reputation”.

What is it people are saying about us behind our back?

It might be worth your while to ask others.

Why Plan

“In preparing for battle I have always found that plans are useless, but planning is indispensable.”

Dwight D. Eisenhower

As a Business Family how much of your time is spent on the hard work of planning?

How is your Family managing the nexus of your Determined Strategy and your Emergent Strategy?

Executive Coaching for Family Businesses

The Network of Family Businesses has scheduled a virtual educational seminar with Kathi M Smith, ACC, CPC, ELI-MP to learn and discuss Executive Coaching for Family Businesses. The seminar is scheduled for Wednesday, March 21st, at 11:00 AM EST.

In a White Paper for The Network of Family Businesses, Kathi states it is easy to think of the term coaching when we think of the sports or entertainment industry. We know that the person or team being coached is not only learning the physical skills of their craft but equally important is identifying what drives them to succeed. A coaching partnership in the Family Business incorporates communication and leadership skills that may be used to increase your influence with others. Not over them but with them. Influence is leadership and communication builds confidence allowing you to grow yourself and your business.

People have limiting beliefs and habits that may prevent them from being able to utilize their best skills. What beliefs or habits do you or your teams possess which prevent the ability to move forward? Just like in sports, a personal development coaching partnership encourages, supports, and builds confidence to bring out the best in an individual or team to accomplish their purpose and established goals.

As a coach to family owned businesses, Kathi takes their entrepreneurial spirit to encourage and motivate them to move from where they are, to where they want to be. Kathi is a full time coach and is one of 80 coaches certified in the state of NJ through the International Coaching Federation. She is also a certified Energy Leadership Index – Master Practitioner, which concentrates on core values and unique energy levels we devote to the primary areas of our life each day.

Prior to her coaching career Kathi was in the financial field for 15 years as a successful Sales Account Executive at PHH/Cendant watching the firm grow from 85 employees to a corporation of over 7,000 team members. She worked as a Financial Consultant with Smith Barney and saw the challenges of family owned businesses in passing wealth. She has written the program FAITHThinking which was born through her coaching practice and personal experience as she realized that how we view our Future, our Attitude, what Inspires us, our Thoughts and Habits determine the success we will have each day.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

Who Fills Your Tank

“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”

Mark Twain

The responsibility of family leadership is to nurture the growth and development of the next generation’s knowledge, skills, and abilities.

How many opportunities has your Family missed out on by not encouraging the ambitions of the next generation, even if that may not be in the business?

Continuing in the routine Health Assessment of your Family Business

Family owned Businesses, of any age or generation, need to take routine assessments of the health of their business, family, and individuals in the business. To get a clear true understanding, the assessment should consider, separately and in combination, all the factors that enhance the health of the Business Family. Critical areas that should be evaluated include: Leadership; Values; Change; Goal Orientation; Empowerment; Communications; Governance; Team Work; Interpersonal Relationships; Familiness; Customer Focus; and Individual Recognition.

The best way to find out what is actually going on in the family and business is to ask those in the family and in the business. Earlier ‘Check-Up’s examined Familiness, Family Values, Communication, and Customer Focus. This Family Business Check-up examines Leadership.

The leader’s role in the organization creates the foundation upon which to build the future. Successfully influencing the activities of members and the group is enhanced when members recognize the leadership as nurturing, caring, competent, and forward thinking. This dimension considers the strength of support for the group or organizational leader.

Each Family Member should address the following statements:

1. Leadership in our family business encourages individuals to think and make decisions for themselves.

2. We display strong confidence in the integrity and ability of our family leaders.

3. We are confident our family leadership will fulfill their commitments.

4. The leadership cares about each individual in our family and business as a person.

5. There is a defined process for leadership succession in our family.

How would your family, employees, and customers, clients, or vendors, answer these questions about Leadership by your family and your family business?

We will continue to explore critical areas for the annual check-up of Family Owned Business in later posts.

What are your thoughts regarding the Business Family Check-Up?

When was the last time your Family Business had a check-up?

Addictions and Behavioral Issues Impacting Business Families

In a White Paper, found at www.netfamilybusiness.com, Dr. Karl Benzio explains in the United States 34% of US adults will suffer a behavioral health disorder this year. 61% of US adults will suffer in their lifetime and 72% of US adults will have a spouse, parent, child, or sibling suffer with an addiction in their lifetime. Alcohol is the 3rd leading cause of death in US and Heart Disease is a leading cause of death with primary factors being stress and emotion.

For Family businesses there are added pressures and stresses in that, people know each other’s baggage, insecurities, weaknesses, and shortcomings. There are extra pressures to succeed, work harder, and work longer. In the Family and the Business, at times, a lot more enabling occurs – meaning family usually ignores or “protects” the person from the natural consequences thus enabling the destructive/dysfunctional behavior to continue.

What is a Family Business to do? How should a Family Business address these critical issues?

The Network of Family Businesses has scheduled a virtual educational seminar with Karl Benzio, MD Psychiatrist to discuss Addictions and Behavioral Issues that impact the Business Families. The seminar is scheduled for Thursday, February 16th at 11:00 AM EST.

Karl Benzio, MD, Psychiatrist is an international speaker and frequent media guest expert. Karl testified for Congress and the President's Bioethics Commission, taught at pastor's conferences in Uganda and Kenya, led the first behavioral health training team into post-Sadam Iraq (at the request of the Iraqi government), taught counseling program courses, and spearheaded a unique Katrina relief effort. He has started a non-profit ministry, directed adult and adolescent programs, psychiatric ER, as well as a Christian Rehab program, using his unique cutting-edge workshop, WITHIN REACH, to help people transform their lives.

Karl attended Duke University,1981-85: BSE in Biomedical Engineering, concentration in CNS imaging (graduated with honors) UMDNJ-New Jersey Medical School, 1985-89: MD (honors in psychiatry) University of California - Irvine, 1989-93: Psychiatric Residency - Accredited by Board of Psychiatry and Neurology.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

We are excited to have Dr. Benzio discuss these critical issues for Families in Business.

What is happening in the marketplace that will predict the success of your family business?

With the recent announcement of several large businesses filing for Chapter 11, others filing for Chapter 7 and the seeming rebound of several market indicators, I would suggest it is as critical a time as ever for families in business to pause and consider what direction they want their family and business to go.

As is often the case, the tyranny of the urgency takes precedence to strive for income that exceeds expenses. It takes time and commitment for a business family to learn, to discuss, to plan, and implement the building of a legacy.

Success depends on how effectively the family, the managers, and the leaders understand the marketplace. There are several key factors that the family needs to understand to compete in the marketplace.

- What are the factors of the market: the competition, the economics, the technology, substitution products or services?

- What are the capabilities of our business and family: knowledge, skills, abilities, attitudes, and commitment?

- What can we as a family do, adapt, or redesign of our product or services: take the learning ability of our team to turn expenses into value generation?

- What do we, as a family, believe the future will be: based on critical metrics, leading indicators, and our family’s objectives for the legacy of our family and business?

What do we, as a family in business, need to learn and do well to create value?

What do we, as a family in business, need to learn to build our legacy?

Let me know how you and your family address these critical factors.

Social Media and the Family Business

“In the end, without an online marketing strategy most businesses will find it more and more difficult to attract new business, maintain their current customer base, and create overall brand awareness.”

Want to get started, but not sure where to begin?

Perhaps you are intimidated by technology and uncomfortable engaging others.

The answer is simple; before people will frequent your business, they need to feel like you care, regardless of the topic.

To help learn what to do about Social Media, The Network of Family Businesses has scheduled a virtual educational seminar with Chris Durante Visco to discuss Social Media and the Family Business. The seminar is scheduled for Tuesday, January 24th at 11:00 AM EST.