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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Strategic Moves Small Business Owners can Make during Rising Inflation Periods

January 13, 2022 No Comments

Rising inflation is affecting both consumers and businesses alike. As the dollar’s purchasing power decreases, and prices for goods and services rise, a vicious cycle ensues. Small business owners are obviously not immune to this damaging dynamic. These small companies experience a decline in sales volume and their top lines fall. Fortunately, there are some strategies that small business owners can use to their advantage, even as inflation rises. While these moves won’t magically make all their problems disappear, they will help them to get through this trying time and even realize a greater profit in the future. Expect the Unexpected It is very easy for small business owners to get comfortable in their routines. So, when circumstances change, they generally are not prepared. The shock can lead to making rash decisions and as everyone knows, decisions made under duress don’t typically go very well. Because there is no way to tell how long this inflationary cycle will last, it’s best to adapt to the disruptive environment than to ignore it and hope to weather the storm. An increase in inflation has a number of effects on the economy. First and foremost, it erodes purchasing power as the cost of retail goods and services increase. It can also raise the cost of borrowing as interest rates increase due to increased risk. Inflation increases can also fuel further inflation, creating a feedback loop. —Yahoo Finance In other words, don’t just plan for the immediate short-term, think farther into the future and consider possible contingencies if this inflationary run persists past expectations. Since there’s no real way to know when it will end, it’s far more advantageous to be able to pivot and maneuver on short notice. Otherwise, you could get caught off guard and that could spell big trouble. Strategic Moves Small Business Owners can Make during Rising Inflation Periods The good news is that inflationary cycles don’t last forever, they are temporary. But in such situations, there will be challenges. So, you can use the following strategies to help your small business make it through inflationary times: Offer long-term contracts. During periods of uncertainty, people relish the comfort of stability. Suppliers, vendors, and clients are no exception. Offer them long-term contracts at agreeable terms and that will alleviate some anxiety. It will also help to give you more peace of mind in the short term and can also help to set your business up for future success. Invest in technology. Smart business owners take advantage of these circumstances by doubling down where it really counts. Technology gives businesses the power to increase productivity with fewer employees. Technology is a force multiplier. By expanding their technological assets, companies can not only meet but surpass client demands with fewer human resources. Refinance your debt. Interest rates remain at near historical lows at the moment. But, they are likely to go up through the year. So now is the time to lock in a lower rate and refinance your debt. Paying just a little less in regular installments will help to free up cash for use elsewhere. Resist shrinkflation, if possible. Consumers are very well aware that they are getting less and still paying the same amount or more. Big corporations use this sleight of hand and needless to say, the general public doesn’t like it. If you are able to deliver the same goods and services for the same prices as you normally would, continue to do so for as long as possible. This will most definitely help you stand out from the competition and your sales figures will reflect it. What other suggestions do you have for small businesses that are dealing with rising inflation? Please take a few moments 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.

Is Crazy Creating Chaos in Your Company?

May 5, 2017 No Comments

We all deal with crazy (read: difficult) people in life. They are rude, obnoxious, oblivious, pitiful, without fault, always victims, stir up drama, and what’s worse, don’t know so. You see, the problem with him or her is someone else besides he or she: another coworker, a family member, perhaps even you. As the head of an organization, no matter its size, you’re bound to run into crazy and what’s simply insane is the fact that you let them through the door in the first place. This is just one way business owners and managers rationalize a situation that’s spiraling out of control. “It’s a phase,” or “he or she just needs a little extra motivation.” Though these thoughts might bring a modicum of comfort, it will be short-lived. If you are faced with an employee that’s ultimately doing more harm than good, you’ve got to deal with the situation before it has time to inflict more damage. Ways to Deal with Difficult Employees In most instances, people that behave this way aren’t at all aware of reality. While you and the rest of your team know it, the problem personality probably has a peculiar position. This is a moving or adaptable perception that assigns blame away from him or her. Of course, this makes things worse because he or she won’t be easily convinced as to what’s truly going on. Often, when an employee is difficult we stop paying attention to what’s actually going on. We’re irritated, it seems hopeless, and we’ve already decided what we think about the employee – so we just turn our attention to other things, out of a combination of avoidance and self-protection. But the best managers get very attentive when someone’s not doing well. They know their best shot at improving the situation lies in having the clearest possible understanding of the situation… —Forbes.com The very first thing you ought to do is to take stock of the dynamics. Put yourself in his or her shoes to try and gain some perspective. If that comes up short and doesn’t provide any tangible answers, you now know he or she is the real source of the problem. Fortunately, there are steps you can take to take crazy out of the company: Separate fact from friction. Yes, friction, as well as fiction. Friction between employees can easily lead to you taking sides because of your affinity for one over the other, which is where fiction comes into play. You should act on facts, not feelings, and not because of favorites. Don’t confuse performance with conduct. One rationalization for keeping problematic employees in the company is because of their so-called “redeeming qualities.” While he or she might well possess some great performance traits, it is his or her conduct that’s actually most important. What he or she might be producing individually could well be undermining his or her peers. Take time to listen and offer solutions. Should the person who brings crazy chaos into your company be a productive team member, you ought to try to invoke a turn-around. Go into a private place and ask if he or she is having any problems, then, tactfully offer solutions. If the response is knee-jerk or obtuse, it’s probably time for ultimatums. Lend a helping hand. Not your own, but someone within your organization you trust. This works best peer-to-peer, where coaching captures cooperation. Though this can work wonders, it can also become a tempting choice in the future. Don’t use it as the fallback position or you’ll simply be known for passing difficult personalities out for others to deal with. Ultimately, you are fighting to deal with a situation, not to win by wrangling control away. You want to create a solution, not to win an argument. If you do chose the latter, you are choosing to join in the craziness and even make the environment worse. Also, know when you’re at your limit, as not every situation can be resolved. There will be times when simply parting ways will be the best solution for you and your business. [shareaholic app=”follow_buttons” id=”26833294″]

Stop Enforcing These Dumb Office Rules That Make People Quit

September 6, 2017 No Comments

If you want success, you’ve got to stop doing certain things. And, these include enforcing dumb office rules. Let’s face it, there are a number of do’s and don’ts in the workplace we all seem to recognize as unnecessary. But, for some strange reason, we follow tradition — even when it’s doesn’t really make sense. Giving into the “ways it’s always been notion” simply hinders us in different ways. Okay, rules are fundamental in business but too many rules stifles your employees. 5 Most Hated Office Rules that Drive Employees Crazy Think about it this way — more freedom means more business. Put another way, the more rules applied, the less freedom your team members enjoy. That’s simply creates artificial barriers they must overcome. Which means, it’s a waste of time (and ultimately money) and that’s not going to propel your business forward. When there are less rules, there’s more enthusiasm. Fewer rules also means more creativity. Companies need to have rules—that’s a given—but they don’t have to be shortsighted and lazy attempts at creating order. When companies create ridiculous and demoralizing rules to halt the outlandish behavior of a few individuals, it’s a management problem. There’s no sense in alienating your entire workforce because you don’t know how to manage performance. It makes a bad situation that much worse. —Entrepreneur Now, there are reasonable rules. It might apply to workplace social media use. Or, about limiting overtime. But, there are probably at least a few rules that your employees hate. These cause unnecessary stress and can easily become too overwhelming. If rules are stringent enough, you might lose good talent. Obviously, you need to retain the best talent and attract more. But some rules will make that quite problematic to achieve. Here are five of the most hated office rules that drive employees crazy: Time off rules. We all get sick, tired, and have personal needs. So, if an employee doesn’t feel well, don’t make it a bigger burden by requiring a doctor’s note. And, be flexible. If an employee feels lying is the best way to take a personal day off, there’s something wrong. Treat your employees with respect and you’ll definitely reap the rewards. Approval rules. Try this thought experiment — every time you make a purchase decision or other kind of decision in your personal life, stop to consider how productive it would be to seek an approval. Now, there are reasonable limits but you should trust employees to do what’s in the best interest of the company. Performance rules. Performance evaluations aren’t necessarily the best use of time. In fact, there are plenty of good arguments they just drive people nuts. What’s more, these are often dreaded, boring routines. So, ask yourself if you really need performance rules to meet performance guidelines to reward someone during a performance evaluation. Internet use rules. Unless you’re dealing with super-secret information, there’s really little to no need for internet rules. Your team already knows what is and what isn’t acceptable. Give them the power to do the right thing and they’ll feel respected. On-site attendance rules. The office isn’t always the best place to get things done. Sometimes, working from home or outside the office is better. Requiring people to be in the office or on-site from this time until that time daily simply won’t produce the best results. What hated office rules have you eliminated? Which office rules do you find the most productive? Please share your thoughts and experiences by leaving a comment! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]