Family Business Issues

What issues can you expect in a family business?

OH, Boy! The stakes are much higher in a family business when it comes to the family members. In any other type small business, solutions to issues can be worked out easier without the breakdown of your family in disagreement and/or turmoil.

What starts out looking ominous in regard to the entire family participation, is to simply have a board (family) meeting and work through all concerns at the beginning. When I say family, I mean all members that can walk and talk, do not leave anyone out if they want to help, and on the other hand, use care and love with those that have another agenda, don't even try to put a square peg in a round hole, this is your family, keep it whole by allowing individuality.

I don't like this phrase, but, "Trust Me". I was raised in a family business, started by grandfather, and included Dad and uncles. Grandfather ruled with fairness but used ultimatums and intimidations when he did get what he wanted. I saw him as a benevolent dictator, most of the time. If you followed his rules, all was well. Not all family businesses work that way, but it taught me the consequences of that method of management.

I was an independent thinker and grandfathers method of teaching didn't work well with me, even though I did learn a lot, it was never really fun because of the fear factor. So I left the family business to go it alone.

My First Experience with Family Business Issues.

Dad was sent over to eastern Washington to start a feed lot for grandfather in 1951, his father-in-law. Dad bought a meat department concession in a grocery store to supplement our income. A few years later bought a locker beef store on the west side of town. I was fourteen and just finished my freshman year in high school in 1957.This store had a fruit stand, Dad didn't know or want to open a fruit stand, but I did. I asked, pleaded, begged and was told I also didn't know anything about fruit or selling fruit. Another distant relative did, but by season end, he left.

During that summer, I spent time with this relative learning. Then I started walking down to the next very large fruit stand, about half a mile away, during lunch hour. This father and family thought it was a kick in the pants that this young whippersnapper wanted them to teach me how to run a fruit stand and compete against them.

Something happen by the next day when I arrived. The father took me under is wing and the others accepted me without reservations. During that summer, my lunches grew longer, (Dad thought I was fishing in the river across the road). I was taught how to cull produce, display, price, discount leaders, but most important where to and how to buy produce, including to negotiate prices and watching for bait and switch tactics common amongst growers, especially with inexperienced buyers.

Needless to say, the next summer, I presented my business plan. I was waiting for Dad to laugh or say no. My plan needed $300 for inventory but not where I was going to get the money. No mention of rent for the fruit stand, nor how a 15 year old was going to go down into the valley to buy produce. To my surprise, Dad filled the holes in my presentation, money, rent and transportation, and the decision was rendered before I was able to complete my presentation. He said it was my research and business plan that turn the key.

I think Dad had everything figured out except for how I intend to pay him, unless he managed the money. I asked him if I could do it under his supervision and at the end of the season Dad was paid back the loan, and we split the net profits down the middle, $1,500 each, a lot of money back in those days. I never lost the taste of business, even with my failures and they usually came from to much enthusiasm and not enough research or good business plan. My experience with family business has been both exhilarating and humbling.

I learned the hard way about running a family business.

I learned early the family comes first, then the family business. Success is not the money, it's the feeling of accomplishment and fulfilment. That's not possible without the family being first. I discovered the mental trap that says business provides the income to pay the bills and it must come first, the hard way. Even though there is truth in it, don't let it take you away from, or cause conflict and stress on the family. I found that sharing my concerns with the family and listening to their complaints and ideas helped. Another "Trust Me", from the mouth of babies can come the simplest answers.

Treat your working family members the same as an employee, but above all, especially the young ones, teach them will patience, don't lose you temper when they make mistakes, grasshopper. Start with short hours and try to use them in areas they are interested in, then slowing expand their learning experience. I learned this from Dad, a great teacher by example with the patience of Job, thanks Dad and I miss you.

My Dad's litany of sayings.

Dad had some wonderful, but, annoying wise sayings:

1. If you don't know what you're talking about, just listen.
2. If know what you're talking about, just listen.
3. If you do all the listening, you're learning.
4. If the other person is not listening, stop talking.
5. Interrupting is the ego screaming "I want to be someone, too".
6. It's your responsibility to get your point across, if it's important that they understand.
7. It's your responsibility to get their point if it's important to you.
8. It's better to have a plan, even if you don't follow all of it.
9. Luck has little to do with success.
10. Without some failures, success has less meaning.
11. If it's not fun, change what you're doing, or change your thinking until it's fun.
12. You should never work a day in your life, you'll live longer, get it, Dad did, he was up early and went to bed late with a smile on his face, always!

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