You have taken over the family business. At least ostensibly. But, it appears that your parents (maybe one in particular), has yet to truly let go of the company. That is to say, your parents collectively, or mom or dad, are still running the day-to-day operations, even though they’re not supposed to do so any longer. It’s driving you crazy, and what’s more, it’s beginning to create a confusing situation among your employees. Worse still, you’re not getting the control and respect you deserve. So, what can you do? Common Family Business Challenges When a child or children take over the family business from their parents, it is not at all uncommon for the parents to stick around for a little while. However, if they continue with their normal presence and engagement, it can create a number of problems. First and foremost of course, is the fact that successors aren’t seen as true authority figures. But, that’s not all. While business owners typically make more money by selling to a third party, many want to keep their companies in the family. ‘If it’s a growing and thriving business, it should appreciate and produce income for the kids,’ says Amelia Heath, a lawyer in Portland, Ore., with Davis Wright Tremaine. ‘If the kids are involved, then giving them the business can be a good choice.’ —Kiplinger Because the children’s role has been marginalized, they don’t feel comfortable or empowered to make any needed changes. Obviously, the employee’s disposition at large will also be affected by this type of situation. In short, it creates an awkward and uncomfortable scenario that just can’t be tolerated. How to Take Over a Family Business from Parents Who won’t Let Go If you’re experiencing these types of circumstances, you’re probably very unhappy, to say the least. Though you appreciate your parents’ past and current contributions, you’re now the one that is supposed to be running the business. Even though they’ve passed it off to you, they’re still holding on to their previous roles. So, here are a few helpful suggestions: Have “the talk.” While it’s either the last thing you want to do, or you’re eager to jump into it, you’ll have to have a firm yet caring discussion. Get the point across that you greatly appreciate all they have done and would also be equally grateful to help you out as you need it, but you must take on the position they’ve passed to you to honor their legacy. In other words, treat them with respect and gracefully allow them to transition out of the company. Speak with your employees. Next, it will probably be necessary to speak to the employees in much the same way. That is to say, that you are now the one that is in charge of the business and they should look to you. Give them a little leeway with this, because if your parents are still even marginally involved, they’ll naturally feel obligated to listen to them. However, given a little time, the entire dynamic will change and the employees will respect your place as the head of the company. Get all your vendors up-to-date. The same thing holds true for vendors. Because they have a long-standing relationship with your parents, they will also feel more comfortable doing business with your folks rather than you. Just as with the employees, this too will change over time. Make necessary changes incrementally. Another way to make the transition go smoother is to hold off making any big changes in the short term. (At least, those things that can wait.) This way, your parents won’t feel as though they’ve been doing something wrong, or that you’ve been itching to making changes they’ve long resisted. What other suggestions do you have? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group

If you run a successful business — and have for many years — it’s understandable that during such an uncertain time as there is now, you might consider just getting out. This is particularly true for individuals who’ve enjoyed a good amount of success but just don’t want to go through another cycle that again puts them emotionally through the wringer. However, because of all of that’s going on in the economy, with things largely down, is it best to sell now or wait until the economy recovers? The Downsides of Selling During a Recession That’s really the million-dollar question. Of course, a recession will naturally be a more tough environment in which to sell. There will be fewer buyers available as small business credit tightens and even larger organizations avoid potential risk. So, you’ll probably find it a bit challenging to find a suitable buyer. The Great Recession ended in 2009 and impacted the lives of many. Now as the economy appears to be headed into another downturn, it’s a good time to review how to take advantage of the recession instead of letting it take advantage of you. —Investopedia Then, there’s another fairly obvious factor — will your business bring the amount you expect? Put another way, can you sell it for the same amount or near the same amount you would be able to during normal economic times? Also, how do you effectively market your business in order to attract the right type of buyer? (This is where an experienced business consultant/coach would come in very handy.) The Advantages of Selling During a Recession Conversely, there are some distinct advantages to selling during an economic downturn. Here are some benefits you should know about: You might be able to leverage a slight discount. Okay, so that’s probably not what you want to hear, but this doesn’t mean giving your company away for an undervalued, low-ball price. What it does mean is being able to attract qualified buyers with the promise of a fair deal. By taking this approach, you may be able to sell it faster and move on to something else, or perhaps retire, in a shorter period of time. You can separate out time-wasters from serious buyers. This is something just about any business that’s for sale encounters. People who talk a good game but never really follow through and actually take action. On the flip side, serious buyers will understand the overall economic circumstances. Therefore, they’ll be more sincere and eager to get the deal done. In other words, they’ll likely have their ducks in a row and be ready to proceed because they’re serious. Remember that you’re in control. Very few business owners who decide to sell are completely comfortable with their decision. The majority will second-guess themselves over and over again, even after they go through with a transaction. The bottom line is, if you are able to get a fair price, it’s probably not worth risking waiting any longer, because the economic environment could worsen and that will most definitely hurt your chances of selling. What other advice do you have? Please take a moment to share your thoughts and experiences by commenting and giving others valuable feedback! Interested in learning more about business? Then just visit Waters Business Consulting Group.