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

When it comes to the workplace, trust is key. Employees need to trust their managers in order to feel comfortable taking risks and be productive. Managers, in turn, need to trust their employees in order to delegate tasks and give them the freedom to make decisions. Unfortunately, many managers say things that damage this trust relationship. So, let’s discuss five of the most common phrases that managers use that kill employees’ trust. Words can Speak Louder than Actions Managers should avoid the following phrases in order to maintain a trusting relationship with their employees. Trust is essential for a healthy workplace and these phrases can damage that trust relationship. Employees need to feel comfortable coming to their managers with questions and concerns, and they need to know that their manager will be open and transparent with them. The employee-manager relationship is one of the primary components to a strong organizational structure. Employees rely on their managers for career development and guidance on how to improve their skills. One of the elements of a successful employee-manager relationship is trust. When the sense of trust is strong between an employee and manager, it adds efficiency to other elements of workplace productivity. —Houston Chronicle Small Business When managers use these phrases, it sends the opposite message. It makes employees feel unimportant and disregarded. It creates uncertainty and frustration, which leads to a lack of trust on the part of the employees. And that, of course, results in a negative impact on morale, productivity, and overall company culture — three poison pills that can cause actual, long-lasting damage. Five Phrases Managers should Avoid to Avoid Destroying Employee Trust We’ve all heard the age-old wisdom about sticks and stones breaking bones but words never inflicting harm. Of course, this philosophy is entirely contextual because we all vividly remember instances when words cut deep. While these phrases aren’t intended to insult or hurt, they nevertheless undermine your authority, respect, and relatability. So, avoid using the following phrases because they will slowly kill employee’s trust: “I’m the boss, I don’t have to explain my decisions.” This phrase is incredibly damaging to trust. Employees need to feel like they can come to their managers with questions and that their manager will be open and transparent with them. When a manager uses this phrase, it sends the message that the employee is not valued and that their opinion does not matter. It also makes the manager seem like they are hiding something. This can lead to employees feeling uncomfortable coming to their managers with questions or suggestions, which can hurt productivity and morale. “I’m too busy to deal with this right now.” This phrase often comes across as dismissive and unprofessional. It sends the message that the employee’s concerns are not a priority and that their manager is too busy to deal with them. This can make employees feel unimportant and disregarded. It can also lead to them feeling like they are not able to come to their manager with problems or concerns, which can hurt morale and productivity. “I’ll get back to you.” This phrase often comes across as ambiguous and frustrating for employees. Employees want to know what is going on and they want answers from their managers. When a manager says this phrase, it sends the message that the employee is being ignored and that their question is not important. It also creates uncertainty, which can lead to employees feeling anxious and stressed. “I’m not sure, let me check on that.” This phrase is often used as a way to avoid making a decision or taking responsibility. It sends the message that the manager is not capable of making decisions and that they are not in charge. This can make employees feel like they are not being taken seriously and that their concerns are not important. It can also lead to frustration and a lack of trust on the part of the employees. “That’s not my job.” This phrase communicates that the manager does not care about their employees or their job responsibilities. It sends the message that the employee is unimportant and that their job is irrelevant. This can lead to employees feeling unvalued and unmotivated. It can also cause them to feel like they are not able to come to their manager with questions or concerns, which can hurt morale and productivity. Which other phrases would you include in this list? 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.

Any experienced financial advisor will tell his or her clients to buy when the market experiences a downturn. “Everything is on sale,” is the old adage, and for good reason. If an investor rides the roller coaster, he or she will make up any “paper losses” only to add real gains later on. Business owners know this but are often too afraid to take the risk. Then, later regret not seizing the opportunity. Why Economic Downturns Create Opportunity Most economic downturns hurt a variety of industries. By the same token, that creates opportunities for those unaffected, and even those who are. Here’s an example. A construction business will probably suffer during an economic downturn as more people will attempt to go the DIY route. But, once the homeowner gets in over his or her head, they’ll need a professional. Entrepreneurs are often reluctant to spend money to make acquisitions, expand capacity or open new markets during an economic downturn. However, downturns can be an ideal time to invest in your business. Every recession creates opportunities for innovative entrepreneurs. And inaction doesn’t mean safety in uncertain times. Rather than simply hope things will get better, you should act to improve your operations and position yourself for growth when the economy recovers. —Business Development Bank of Canada The contractor who continues to aggressively market their services will likely be the one to benefit. Because their competition will likely cut back on advertising and maybe even layoff crew, the construction firm that remains publicly out front will reap the rewards of strategic marketing. Meanwhile, those who pulled back will only continue to shrink. 3 Reasons Now is the Time to Expand Your Business Even though just about everyone knows that a bear market presents opportunity, a good percentage will err on the side of caution, rather than taking a risk. So, it’s important to know the rewards that favor those who seize the opportunity. Here are three reasons now the time to expand your business: Commercial real estate is slow. Because of the nature of this economic downturn, commercial real estate is in a slump. That means you can use the circumstances to your advantage and negotiate a favorable deal. With a little bit of swagger and confidence, and a keen eye on opportunity, it’s possible to negotiate aggressively and score a real win. Remote work costs less than on-site. It’s no secret that remote workers cost substantially less than on-site employees. This is a great way to expand your workforce while getting a substantial discount and expand your business as a result. This also allows you to streamline your processes to get more productivity without paying more for it. There’s a larger pool of talent available. When the economy slides, many talented individuals become unemployed. That means, if you’re discerning enough, you can put their advanced skill sets to work for your business. What’s more, motivated and successful individuals will most likely come to you, while lackluster individuals and people who aren’t ambitious won’t. What other suggestions do you have for expanding a business? Please share your thoughts and experiences by commenting and giving others some ideas! Interested in learning more about business? Then just visit Waters Business Consulting Group.