Business Education

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

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These Two Words Reveal Bad Leadership Skills

September 14, 2020 No Comments

Harry Truman once said, “It is amazing what you can accomplish if you do not care who gets the credit.” Ronald Reagan echoed that sentiment. JFK famously said, “…ask not what your country can do for you — ask what you can do for your country.” Taking credit, even when legitimately earned, doesn’t sit well with others. People often take it as pompous, even narcissistic. That’s because it simply comes across that way, even if you don’t mean it at all. That’s why two simple words can give you a glimpse into someone else’s leadership style. Language Reveals a Lot about Personality The two words that serve as warning signs of bad leadership are merely pronouns — “me” and “I.” Someone who repeatedly uses “me” and “I” are subtly (perhaps overtly) expressing their worldview. That’s right, he or she is the center around which everything revolves. Leadership is one of the most important factors determining the success of a company. Poor leadership can seriously affect employee morale and even cause the company’s bottom line to plunge. Bad leadership leads to poor employee retention and demotivates the remaining employees, causing them to be much less productive than they would otherwise be. —Houston Chronicle Small Business Okay, that’s cliche, but it exposes a hard truth. We don’t like to think of ourselves as selfish, so we also don’t like to apply that label to others. Though, when the behavior is egregious, it not only seems appropriate to think of as an undesirable quality, but almost a necessity to call out. 3 Devastatingly Poor Leadership Traits While there are certainly numerous bad leadership attributes, three are among the absolute worst. They undermine the very role of a leader. So, doing any one of them (or more) will only be counterproductive. Here three hurtful leadership characteristics to avoid all the time: Micromanaging. Unsurprisingly, this makes the top of the list. Micromanagers are among the most despised people because their behavior is completely counterproductive. Insisting on control of everything means there’s really no need for anyone else. It’s so hated, this trait ranks among the highest in dissatisfaction among people in survey after survey. It shows you have no confidence in anyone else. Plus, it proclaims you’re the only competent person in the workplace. Not recognizing others. This isn’t much different from micromanaging because it stirs up just about as much resentment. It shows a lack of care and regard for others. It also says that you have little respect for the work others work so hard to produce. If you aren’t encouraging others through recognition, you’re insulting them in more than one way. Failing to share information. When you aren’t transparent and open about what’s going on or what’s expected, you’re effectively sabotaging anyone without that information. “To be unclear is to be unkind” the saying goes. It speaks volumes because keeping too much too close to the vest shows a real lack of trust. Without trust, there’s no way to have a working relationship. What other signs tip you off to a bad leader? Please share your thoughts and experiences by commenting! Others can greatly benefit from what you have to contribute. Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Subtle but Serious Signs a Business Partnership is in Big Trouble

February 6, 2020 No Comments

Ostensibly, a partnership is an ideal way to bring two necessary but different skill-sets together. After all, it makes sense to join various strengths in order to form an alliance. Such an arrangement seems like it will yield fruitful results. However, far more partnerships fail than succeed. There are many obvious reasons why this happens. But, it’s not always so clear-cut. So, let’s take a look at some subtle telltale signs that a partnership is in trouble. The Biggest Partnership Dangers Dave Ramsey has made famous his five dangerous D’s of partnerships: death, disability, disinterest, drugs, and divorce. Of those, only one makes the list below. That’s because it’s not always crystal clear that something is awry. You generally spend more waking hours at work than at home, which means you have more opportunities to interact with your business partner and the nature of your interactions tend to be more intense, with more potential for conflict because there are so many external variables that are beyond your control. —Forbes.com There are scenarios when very subtle factors are in play. Unfortunately, most business people miss these signals put out by their partners. Eventually, they become more pronounced and at that point, it is usually too late to save the enterprise. 3 Signs a Business Partnership is in Jeopardy When a business partner goes through a very difficult time in his or her life, it’s usually quite easy to see the writing on the wall. But, there are instances when there are no overt problems or issues. Here are three subtle yet serious signs a business partnership is in trouble: Apathetic. Let’s begin with the only sign that makes the list above — disinterest. This can manifest in two different but similar forms: distraction and apathy. A lack of concern and focus can wreak loads of havoc on a business. Before you know it, the onus falls on you alone. That’s when you’ll realize your partner is no longer interested in participating. And, by this time, it usually causes an irreversible rift. Autonomy. On the opposite side of the spectrum is autonomy. Sure, being able to operate independently is typically a good thing. Except when there’s far too much of it. So much, you find out about key decisions well after the fact. This is a sign that unpleasant news is most likely on its way to you. Elusive. This is a very tough one and perhaps, the most frustrating of the two because it’s so difficult to understand. When your partner becomes elusive, that is to say, overzealous one moment and indifferent the next, you’ll struggle to cope with why. This will only lead to unnecessary disruptions and make the partnership unsustainable. What other signs would you add to the list? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

The Quiet Art of the New‑Year Employee Reset

December 31, 2025 No Comments

For most employees, the end of the year or the beginning of the New Year means facing the dreaded performance review. They’ll have to face their shortcomings and recommit to previously stated goals, while also promising to achieve more.