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Help! My Dad Retired from the Family Business Years Ago but Still Tries to Run It and It’s Causing a Lot of Problems

It can be difficult when a parent retires from their job within the family business but continues to act as if they are still in charge. They may make unnecessary demands or try to micro-manage things that are no longer their responsibility. This can cause tension and conflict among other family members who are trying to run the business smoothly. If you find yourself in this situation, it is important to set boundaries and communicate effectively with your parent. So, let’s discuss some tips for how to do that.

The “Unable to Let Go” Syndrome

Some people, be it a father, mother, or even another family member, who’s worked for long periods of time in a family business regard the company as part of their identity. It’s simply part of who they are and therefore, it’s not easy to walk away. It becomes even more difficult when handing the operation over to children, who don’t have all their years of experience.

One of the most agonizing experiences that any business faces is moving from one generation of top management to the next. The problem is often most acute in family businesses, where the original entrepreneur hangs on as he watches others try to help manage or take over his business, while at the same time, his heirs feel overshadowed and frustrated. Paralleling the stages of family power are stages of company growth or of stagnation, and the smoothness with which one kind of transition is made often has a direct effect on the success of the other. —Harvard Business Review

Unsurprisingly, this can easily lead to a father, mother, aunt, uncle, or even a cousin to hang around. Perhaps to the extent that he or she still continues to “run” the business, without the permission of their successors. He or she may make promises, enter into deals, or offer discounts that undermine the new authority of their successive family member(s). Of course, this can cause resentment, anger, frustration, and might also be the cause of unnecessary fighting and/or financial trouble.

How to Deal with a Parent Who Keeps Interloping in a Family Business After Retiring

Fortunately, if you’re in a situation where one or more of your family members has retired but still continues to interlope in the family business, there are steps you can take. First, you need to have a discussion with your parent about their role in the business now that they are retired. It is important to be respectful yet firm in this conversation. Explain to them that while you value their opinion, they need to respect the fact that you are now running the business. This means that they should not try to make decisions or give orders without consulting with you first. You may also want to set some ground rules about how often they can come into the office or participate in business meetings. It is also important to stay calm and avoid getting into arguments with your parent. If they continue to try and take control, it will only escalate the situation and make it more difficult to resolve. Instead, try to have a rational and calm discussion about the situation. If necessary, you may need to involve other family members or even a mediator to help resolve the situation. Additionally, it may be necessary to speak privately with any customers who aren’t completely clear about who is actually running the company and who makes the decisions. This could help in the future with communication and in other important areas. If you find yourself in this situation, it is important to set boundaries and communicate effectively with your parent. By doing so, you can hopefully avoid conflict and maintain a healthy relationship with your parent. Have you ever dealt with this type of situation? What would you do to resolve it? Please take a moment to share your experiences and thoughts so others can benefit from your input. Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Do Businesses Really have a Credit Score?

February 26, 2021 No Comments

Do businesses actually have a credit score? The short answer is — yes. And, these measures of financial responsibility are calculated much in the same way individual credit worthiness is determined. Although it’s not something that’s widely discussed or known about in the consumer world, businesses do have credit histories, and therefore detailed reports which give them scores. Read on to learn the basics about business credit scores and what you need to know. How Business Credit Scores are Calculated As mentioned above, a business credit score is measured very similar to the way individual scores are calculated. Meaning, the length of credit history, types of credit used, payment history, debts owed, and other factors. Unsurprisingly, the better a business handles its financials, the better score it earns. Businesses of all sizes may need credit. A carpenter with no employees may want to borrow money to buy equipment. A marketing professional with a few employees may be ready to purchase furniture and computers for a new office. A salon owner with subcontractors but no employees may want to buy, rather than rent, commercial property. Any type of business could benefit from a business credit card. —US News and World Report Of course, there are some differences, one of the most minor being the scores themselves. While individual credit scores range from a low of 300 to a high of 850, business scores range from 0 to 100, with 100 being the highest. Additionally, business credit scoring services use different models in order to determine the creditworthiness of companies. Also, instead of there being three main credit reporting bureaus for individuals, Equifax, Experian, and TransUnion, there are two principal business credit scoring entities: Dun & Bradstreet and Experian. How to Improve a Business’ Credit Score Since business credit scores rely on many of the same elements as individual consumers, nearly the same factors are used to assign a credit worthiness score. So, in order to maintain or improve a business’s credit score, companies must do the following: Keep debts manageable. Opening too many accounts and taking on large amounts of debt will only increase your financial risk. This not only hurts your business’s credit worthiness, it also puts a lot of strain on you as the owner. This is why it’s best to keep your credit accounts to a minimum and pay off as much debt as possible. Utilize different types of credit. Credit mix is also a consideration, meaning businesses having different types of credit accounts. While it’s advantageous to have various types of credit, it is equally advantageous to keep these to a minimum so you’re able to pay what’s owed in a timely manner. For instance, you might finance or lease vehicles through your business, have a business credit card, and maintain vendor credit accounts. All of these will go into determining your business’s creditworthiness. Be vigilant with your personal credit. One misnomer that entrepreneurs have about business credit is that it’s somehow separate from their personal credit and/or financial responsibilities. However, this is completely false. Business credit accounts almost always require an individual or personal guarantee. This of course means that if the business defaults on a line of credit, you are personally responsible for that particular debt. Moreover, business credit is partially scored on your personal credit, so it’s best to maintain a good personal score for the benefit of your company’s creditworthiness. What other suggestions do you have about maintaining a business’ credit score? 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.

Want to Be Successful? Stop Doing these Six Things Starting Now

August 23, 2017 No Comments

Who hasn’t heard the adage, “Quitters never win and winners never quit?” But, you’ve probably heard Michael Jordan talk about his career and already know he learned a lot more from losing than winning. So, why is it that we think quitting or failing are bad things? They’re not. In fact, quitting is quite healthy in some life aspects. And, that’s the key to being successful — to know when to stop doing something to move forward. Be More Successful by Not Doing these 6 Things Research conducted by the University of Rochester reveals there are two primary motivations, approaching goals and avoiding goals. Now, that’s sounds strange, but it makes sense when explained. The former personalities find motivation in challenges but also know when it’s futile to continue. The latter group greatly avoid goals due to fear of failure. So, they don’t give up, even when it’s totally illogical to continue. If we didn’t have to work hard to reach success, we wouldn’t appreciate it. If there’s something you’re putting off because it’s boring you, it’s hard, physically demanding or tiring…just get up and get it done. Quit avoiding it. There will be rewards along the way and there will be a great sense of accomplishment at the end. —Forbes Call it bull-headed, stubborn, tenaciousness, or perseverance, it does shed light on a peculiar behavior that represents a real dichotomy. Studies show those who don’t give up typically “win” more often than people who quit. But, not everything works out that way. Realizing when it’s time to stop doing something is just as important as not giving up on realistic goals. To be more successful, you must stop doing these six things right now: Stop doubting yourself. Doubt and fear are powerful foes. Each acts as a paralyzing weapon which causes angst, anxiety, and more negative feelings. When you doubt your own abilities, you’re giving into an illogical fear. Tap into your confidence and let the self-doubt go. Stop procrastinating. Tomorrow is always a day away and it’s why the “Free Drinks: Tomorrow” meme is a popular one. Tomorrow is also known as an excuse. If everything was easy, you wouldn’t procrastinate and tackle it head on. So, stop putting things off and reap the rewards of accomplishment. Stop dodging choices. There’s always a choice and sometimes, too many. But, you always have a choice and if there’s not a good one, simply chose not to undercut yourself. Think outside of the box, if necessary. But whatever you do, don’t give away your power to choose. Stop the insanity cycle. We all know how Einstein defined insanity, by doing the same thing time and again and expecting a different result. Realize when your efforts are not yielding fruit and go in a different direction. After all, it’s the smart thing to do. Stop believing it’ll work out. When you wait for things to just “naturally work out,” you’ll wait an awfully long time. It takes hard work to get ahead and just waiting around won’t move the needle. Take action and you’ll experience traction. Stop saying “yes” all the time. If you’ve seen the movie “Yes Man” you already know that by breaking this habit, you’re not constantly giving your time away. “No” by itself is indeed a complete sentence and it can easily be far more healthy than saying “yes.” What have you stopped doing to improve your chances of success? Which changes did you adopt that yielded the best results? Please share your thoughts and experiences by leaving a comment! Interested in learning more about growing your business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

If You’re Too Nice, You’ll Hurt Your Business, Here’s Why

August 30, 2018 No Comments

Just be nice. You’ve heard it from your mother. You heard it in kindergarten (and through school). It’s on tee-shirts and bumper stickers. And, it’s good advice, for the most part. But, it’s a recipe for disaster when it’s always your default disposition. Sure, you should be nice to people as it’s the polite thing to do. But, being too nice will cause all kinds of unintentional issues. Read on to see why. How Assertiveness can Hurt You On the flip side, being too assertive can also be quite harmful. Don’t get the wrong impression. You do need to be assertive, just at the right “temperature.” If you are too assertive, you’ll come across as overbearing. And, downright mean, in some situations. People also might think you too coarse and possibly aloof or antipathetic. Leaders are placed under a tremendous amount of pressure to be relatable, human and … nice. Many yield to this instinct, because it feels much easier to be liked. Few people want to be the bad guy. But leaders are also expected to make the tough decisions that serve the company or the team’s best interests. Being too nice can be lazy, inefficient, irresponsible, and harmful to individuals and the organization. —Havard Business Review Assertiveness can also be taken as overly self-serving. Basically, it’s an attitude that can easily come across the wrong way in more ways than one. Although, assertiveness does have a purpose and when it’s used strategically, it’s highly effective. That’s because striking a balance gives you the best of both worlds and a positive perspective. Which ultimately helps you to see things more clearly and make better decisions. Top Ways being Too Nice is Harmful Conversely, being too nice, is at best, problematic. It creates illusions that simply can’t be sustained. In essence, it’s a false impression, even if you’re being genuine. How? Well, here’s how being too nice is harmful in business: You project weakness. When you’re overly nice, you’re perceived as a pushover. It’s that simple. People who have this impression will try to take advantage, when and where they can. And, that sets-up a bad scenario. You attract the wrong people. Another problem with being too nice is that it does attract the wrong sort of people. Some others will take this as a green light to burden you with their own problems. Which means, you’re inviting unnecessary stress and drama into your life. People might feel distrustful. Niceness can bring out negative feelings in others you interact with. For instance, someone could sense you’re actually concealing your true feelings and merely putting up a front. So, they manifest a sense of distrustfulness. You bias your own expectations. When you’re constantly nice, you might make others feel better. But, you’re also inadvertently warping your own expectations, thinking everyone else should treat you the same. How do you balance being courteous and polite with also being assertive? What other advice would you offer? Please share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.