I Took Over the Family Business but My Parents won’t Let Me Run It

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

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Economists Call It Induced Demand, Entrepreneurs Refer to It as a Learning Curve – But the Lesson is the Same

August 28, 2024 No Comments

Economists Call It “Induced Demand,” Entrepreneurs Refer to It as a “Learning Curve” – But the Lesson is the Same Decades ago, California attempted to alleviate and lighten heavy traffic congestion on its highways by adding more lanes. Upon completing construction, the new thoroughfares opened, and, congestion significantly dissipated. Then, gradually, traffic became heavier and heavier. Eventually, the very problem the state tried to tackle returned, but there were more vehicles than before, and traffic moved even slower. The new travel lane additions didn’t solve the problem – they only made congestion worse. Economists call this phenomenon “induced demand.” This term is a fancy way to say it entices and causes more people to use something. The concept of induced demand, first proposed by economist Anthony Downs in his 1982 book “Stuck in Traffic,” suggests that increasing road capacity may not diminish traffic congestion due to the Triple Convergence Theory. This theory posits that new capacity attracts three types of travelers: those who change routes, those who adjust their travel times, and those who switch modes of transportation to driving. These shifts in behavior lead to increased usage of the new capacity, negating the intended benefits of reduced congestion. The lesson in the California road expansion project is simple – the state planned based on theory and had little to no quantifiable data that widening the highways would work. Although it seems perfectly logical to add additional lanes to lessen traffic congestion, the reaction by motorists wasn’t fully considered. And, it’s this very intention that can land entrepreneurs into considerable trouble. Why Entrepreneurs Should Carefully Experiment Before Fully Committing Growing a business can be a challenging process, and it’s easy to make mistakes that can cost time and money. So, you need to be prepared and understand a few things before you attempt to move forward. Now, here are some strategies entrepreneurs can use to avoid expensive or time-consuming mistakes when growing their businesses: Start with thorough market research. Before expanding, conduct detailed market research to understand your target audience, competitors, and industry trends. This will help you make informed decisions and avoid costly mistakes. Then, take the time to develop a solid business plan. Create a comprehensive business plan that outlines your growth strategy, target market, financial projections, and potential risks. This will help you stay focused and make better decisions. Next, learn to lean on your strengths and do the following: Focus on your core competencies. Stick to what you do best and avoid diversifying too quickly. Expanding into new markets or products can be risky and expensive. Invest in technology. Leverage technology to streamline operations, improve customer experience, and increase efficiency. This can help you scale your business without incurring significant costs. Build a strong team. Hire the right people and invest in their development. A strong team can help you avoid costly mistakes and drive growth. Remember, to succeed, you need to rely on others to help you accomplish your ultimate goals because you can’t do it all on your own. Monitor cash flow. Keep a close eye on your cash flow to ensure you have enough money to cover expenses and invest in growth. Try to avoid debt as much as possible. The less you owe, the more options you’ll have. Freeing up resources will do wonders when you experience leaner times. Be agile and adaptable. Be prepared to pivot your strategy if market conditions change or if you encounter unexpected challenges. Unfortunately, too many entrepreneurs become stubborn and refuse to make adjustments, typically leading to unpleasant results. Learn from mistakes. Use mistakes as learning opportunities and adjust your strategy accordingly. When you do this, you’ll build a healthy habit. One that will allow you to reevaluate situations and change direction to avoid bad results. Seek professional advice. Consult with experts, mentors, or advisors who can provide valuable insights and guidance. It’s highly advisable to speak with an experienced business consultant who can provide you with the right advice. And obviously, stay organized and focused. Keep track of your progress, set clear goals, and stay focused on your priorities. By following these strategies, entrepreneurs can avoid expensive or time-consuming mistakes and increase their chances of successfully growing their businesses. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,

Read More »

Accomplish Your Biggest Goals in Small Steps

May 16, 2017 No Comments

You’ve probably heard the way to eat an elephant is to take one bite at a time. In business this is fundamental because it decidedly identifies the road to success. This road, it should be well understood, isn’t an easy path and will have plenty of bumps along the way. These setbacks, or failures, are excellent parts of the learning curve and are typically more valuable than successes. Savvy entrepreneurs embrace this truth and use it in a strategic way. Some of the largest and oldest companies were born from simple ideas. These giants grew from obscurity, not because of all they offer, but because each accomplished a goal which made them instrumental to the world of commerce. In 1939, after many frustrating years, inventor Charles Goodyear discovered the process of vulcanization. Though the legendary achievement is etched in history, the backstory is quite telling. Goodyear spent years trying to turn his concept into reality. He went dead broke and into extreme debt, yet endured and persisted on one single goal. How to Accomplish Your Biggest Goals in Small Steps Of course not every entrepreneur suffers such extreme adversity. It’s true that the majority of businesses do experience fits and starts but overcome and go on to achieve enough to turn a respectable profit. The way this happens is through a series of phases which include periodic cycles of failures. These aren’t due to lack of motivation, not being smart or talented enough, but the result of trying to accomplish too many things at once. When people set out to begin a major work project or adopt a healthier lifestyle, it’s easy to become discouraged when picturing the long road ahead. By the same token, even smaller-scale plans like keeping a medical appointment or a standing date to the gym can become easily derailed by the busyness of our daily lives or a simple aversion to the doctor or the treadmill. —The Wharton School Let’s get back to how to eat an elephant. The key to tackling any big goal is to do so in a smart and workable manner. Though most people understand reaching a goal takes time, their enthusiasm causes over-reach and that’s when things start to go wrong. You just can’t do six things at once and expect to master all of them. Too many directions, which is to say too many projects, is a recipe for failure. So, the key to success is the opposite — do one thing at a time. Here’s how to accomplish your biggest goal in small steps: Set a big goal to reach. The first step is to set a realistic goal. There’s nothing wrong with dreaming big but these can be too large to reach before feeling discouraged. One of the reasons entrepreneurs achieve success is they have a vision that’s focused and workable. Identify a realistic path to take. Another component to achieving your big goal is to map out a realistic path to take. Break the process down into phases —these don’t have to include every possible detail or include all contingencies. Martin Luther King remarked on this when he said, “Faith is taking the first step even when you don’t see the whole staircase.” Start with one small, incremental step. You’ve probably heard different adages about the first step being the hardest. It’s true and to feel a sense of accomplishment while building momentum, the first step ought to be small. Take a moment to reflect the accomplishment. After each incremental step or phase is complete, take time to reflect on your accomplishment. The sense of pride is inspiring, and it reinforces your self confidence. With every step and phase completion, you can look toward your ultimate goal but stay focused on the here and now. This will help to motivate you and it’s a great way to appreciate your hard work. As a side note, it would be an honor to help out my LinkedIn connections with their business. At minimum, I’d love to connect and be in touch. We can do this by you signing up & getting my Top 5 Business Tips each month; and it’s free! May Your Business Succeed Beyond Your Dreams! ~Best, John Waters Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

Read More »