What to Do with an Unwanted Inherited Business

Owning a business is not something that everyone aspires to do. Sure, many people like the idea of being their own boss. But, there are definitely individuals who prefer to avoid the stress and anxiety of being an entrepreneur. Of course, there are many different sets of circumstances. For instance, children who follow their parents and run the family business, taking it over after their parents retire. Or, people who unintentionally fall into their own business without actually setting out to do so. For example, someone who inherits a business from a relative. Although this might seem a bit far-fetched, it does happen more often than one would think. So, what options are available to an heir who really does not want to take over the business?

Types of Inherited Businesses

Probably the most common form of an inherited business is a family company. Usually, the children grow up in and around the operation and are at least familiar with it. Other times, the children aspire to follow their own career path and never work in the organization. Additionally, there are heirs who inherit a family-owned business that they have never really been acquainted with whatsoever.
If you’ve inherited a company, there might be a lot of questions on your mind. You might not want to be an entrepreneur, or even if you do, you might prefer to work in a different industry. Even if you’re ready to take on the business, you might be unsure about how to deal with current employees and suppliers. —Nerd Wallet
Though these circumstances are far less common, they do occur. One prime example is someone who inherits a commercial property. That property is leased by several other businesses and generates a profit. The owners may not even be directly involved with the day-to-day operation and rely on a firm or individual to handle the necessities. These would include things like maintenance, repairs, negotiating leases, upgrades, and more.

What to Do with an Unwanted Inherited Business

Your first instinct could be to just sell it and be out of the situation as quickly as possible. But, if it’s generating a consistent profit, that might not be a wise idea. On the other hand, even if it does generate a profit and you’re completely unfamiliar with it, it could turn into a gigantic mess. Here are some possible options to explore:
  • Learn about the business. Regardless if you’re set on selling it or remotely considering taking it over, you’ve got to know what you’re dealing with first. It’s imperative that you educate yourself about the business in order to make an informed decision as to which way to go. Don’t make the mistake of letting your emotions take over. Instead, take at least a little time to understand precisely what it is and more importantly, how much it’s really worth.
  • Consider being an absentee owner. Although this is quite common in the business world, it’s always a risky proposition. And, it’s probably why you don’t want to get involved in the first place. If you let other people run it, you’re putting your trust into others and that could easily lead to a very regrettable set of circumstances. However, if it is something like commercial property and your relative was also an absentee owner, at least give it some serious thought.
  • Invest in the business. If you do want to give it a try, don’t go it alone. Bring in a business coach to guide you through the process of taking on an entrepreneurial role and become familiar with all it takes to head up this type of operation. If you find it isn’t a good fit, you can always sell it and move on.
What other suggestions would you give someone in this position? 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

Business Owners Thinking about Switching to a 4-Day Workweek Here’s What You Really Need to Know

The 4-day workweek continues to gain traction, though it’s a long, long way from becoming standard. Still, recent trials by companies have shown promise for reducing the workweek by one day (something instituted almost one-hundred years ago in 1926 by Henry Ford). The change is definitely full of ostensible advantages – and big potential. But, this certainly doesn’t mean it’s all upside and no downside. So, let’s take a look at what business owners need to know about switching to a 4-day workweek and what to expect. 4-Day Workweek Pros Switching to a 4-day workweek can have several benefits for a business. While some are obvious, others may not be so intuitive. Here are a few reasons a company might want to switch over: Increased productivity Research shows that shorter workweeks can lead to increased productivity. Employees may feel more motivated to get work done if they have more time to rest and recharge. Better work-life balance A 4-day workweek can give employees more time to spend with their families and pursue personal interests, leading to better mental health and job satisfaction. Cost savings A shorter workweek may lead to reduced operating costs for businesses, such as lower energy bills and reduced use of office resources through less use of computers, lights, climate control, and more. It can also help to rein in office expenses as it offers an opportunity to scrutinize spending expenses. It’s hard to say if many employers will find the 4-day workweek structure agreeable. Everyone is watching these kinds of experiments and learning. Plus, it depends on how the economy and workforce evolve and whether these become new expectations from the vast majority of the workforce—as being able to work at least part-time remotely has become for most knowledge workers. —Boston University So, the very fact that a business will be operating fewer hours translates directly into operating expense savings. (This is something that generally comes to light when there’s a big change and businesses are forced to examine their spending amounts and frequency.) Attract and retain talent Offering a 4-day workweek can be a unique and attractive perk that helps businesses stand out in a competitive job market. It can also help retain current employees by increasing their job satisfaction and loyalty. 4-Day Workweek Cons While these are certainly compelling reasons and sound good in theory, in practice they may not necessarily materialize (or simply manifest in different forms). Of course, as with any new idea, there are bound to be possible drawbacks and problems that could arise unexpectedly. Here are some things you might encounter by adopting a 4-day workweek: Reduced hours A 4-day workweek means employees will work fewer hours, which could lead to reduced productivity and output, especially for businesses that require around-the-clock operations. Workload distribution Businesses may need to redistribute workloads or hire additional staff to compensate for the lost hours of those who are working a 4-day week. Operational difficulties A 4-day workweek could create operational difficulties, such as coordinating schedules with clients or customers who operate on a 5-day schedule. Reduced profits Reduced hours could lead to lower profits for businesses that rely on hourly work or have tight deadlines to meet. Ultimately, whether a 4-day workweek is a good fit for a business depends on its unique needs and goals. It’s important for businesses to carefully consider the potential advantages and disadvantages before making the switch. What other considerations would you suggest be a part of these? Please take a moment or two to comment so others can benefit from your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

The Waters Effect

Why some commercial landscape companies consistently outperform their competition Walk into ten commercial landscape companies and you’ll find ten hardworking owners. Long days, talented crews, a genuine commitment to the customer. On paper, they look a lot alike. But some of these companies are quietly pulling ahead. Stronger margins, better retention, steadier growth, and a business that’s worth a lot more when it’s time to sell. The gap isn’t about who works harder. It’s about who built their business on purpose instead of letting it happen to them. The companies that consistently win aren’t necessarily the biggest, and it’s rarely one big idea that gets them there. It’s a set of disciplined habits around the things that actually drive profit: pricing, labor, production, accountability, leadership, and cash flow. At Waters Business Consulting Group, we call the compounding result of getting these things right The Waters Effect™. Not just a better-run company, but a more profitable, more resilient, and more valuable one. Growth can hide a lot of problems A company can add new contracts every single year and still be quietly losing ground. Margins slip. The owner gets pulled deeper into daily operations instead of further out of them. More trucks, more crews, more markets, and somehow, more headaches without more profit to show for it. Revenue creates activity. Profit creates options. The companies that outperform know the difference, and they’d rather grow slower and stay profitable than chase every contract that comes their way. That means asking harder questions before saying yes to new work: Which customers actually produce strong margins? Which services are worth doubling down on? Are the crews hitting their production numbers, or just staying busy? Are estimates built on real labor and material costs, or gut feel? Is this growth generating cash, or eating it? Know your numbers, then actually use them Most owners get a financial report. Fewer treat it like a steering wheel. The best-run companies don’t wait for a bad quarter to find out something’s wrong. They watch gross margin by service line, labor efficiency, job-level profitability, equipment utilization, and overhead as a share of revenue in something close to real time. When you can see how a decision on the ground shows up in the numbers a week later instead of three months later, you stop reacting and start managing. Systems beat heroics Landscaping is genuinely hard to run well. Weather blows up schedules. Equipment breaks at the worst moment. Scope creeps. A small inefficiency on one crew is a rounding error, but the same inefficiency repeated across fifteen properties becomes a real financial problem. The companies that outperform don’t rely on their best people saving the day over and over. They build systems for estimating, scheduling, quality control, and purchasing so employees know what good work looks like, who owns what, and when to raise a hand. That’s not about becoming rigid or bureaucratic. It’s about giving people enough structure that the business runs the same way whether the owner is watching or not. Less firefighting, more consistency, and performance that’s actually easy to measure. Leadership is the real ceiling Here’s a pattern we see constantly: the owner becomes the default answer to every question. Sales, hiring, customer complaints, equipment purchases, financial calls, all of it funnels back to one person. The business can keep growing for a while like this, but every new contract just adds to that person’s plate. Eventually something has to give. The companies that break through this ceiling invest in developing real leaders, not just good crew supervisors. They hand off real authority, not just tasks. When that happens, decisions get made closer to where the work actually is, problems get solved faster, good employees see a path forward instead of a dead end, and the owner finally gets to think about strategy instead of putting out today’s fire. Leadership development isn’t an HR checkbox. It’s a growth strategy, and it’s a value-creation strategy. Pricing is where profit is won or lost A lot of companies lose their profit before a single blade of grass gets cut. An incomplete scope, an unrealistic production assumption, or a price that was never tied to real cost data can sink a job before the crew even shows up. No amount of hustle on-site can fix a bad number on the estimate. The companies that consistently perform treat pricing like the strategic skill it is. They know their true costs, cold. They build estimates on real production data, not last year’s guess. And critically, they go back and compare what actually happened on a job to what they estimated, then use that to get sharper next time. They’ve also made peace with the fact that not every job is worth chasing. The wrong contract, even a big one, can drain crews and cash without actually building the business. Accountability makes strategy real A strategic plan is just a document until someone owns making it happen. The companies that execute well give every important goal a clear owner, a way to measure it, and a deadline. This isn’t about assigning blame when things go sideways. It’s about clarity: people perform better when they know exactly what they’re responsible for, and leaders make better calls when they have real information in front of them instead of a hunch. Regular check-ins, clear roles, and actually following through on commitments do more for a company’s performance than another strategic offsite ever will. Freedom is a sign of a healthy business Plenty of owners find that growth made their life harder, not easier. More revenue, more employees, more equipment, and somehow less time and less control than when they started. That’s usually a sign the business outgrew its own infrastructure. A healthy company can run well even when the owner steps away, whether that’s a two-week vacation or the start of a transition out of the business entirely. That kind of freedom isn’t about working less for its own sake. It’s proof that

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.