Going Outside – The Runaway Manager

“Before we knew it, we learned that we were having a Grand Opening for our new Manhattan retail store later that week. And we weren’t even a retailer“

To help with the growth our family business, our family hired a key non-family manager for the first time.  Attracting an outside manager into a family business is especially challenging with regards to compensation.  Like many closely-held firms, we weren’t willing to give up equity in the business, so we created a compensation package built around a performance bonus.  We selected an outside executive who came from a larger company, who brought proven expertise to grow our company rapidly. Coupled with their high ambition, it seemed like a good idea to tie their compensation into sales growth. More…

Family Business Strategic Plan

5 Ways to Keep Your Family Business Innovative

“One of the first things we lose as our companies grow is our innovative and entrepreneurial thinking – here’s how to gain it back”

As our businesses grow we struggle with the balance between being too hands-on and too far removed from the operations of the business. We’re encouraged to delegate and develop employees, which tends to draw us further away from the hands-on more entrepreneurial tasks of the business. In it’s extreme form, delegation can feel like we are just “managing managers”. Conversely, being too-hands on, pulls us away from thinking strategically, because we’re too caught up in the day-to-day routine tasks of running the business.

In our family business our parents encouraged us to reach out for new ideas by continuing to learn and meet with people outside of our industry. How do you “keep entrepreneurial” even as your business grows more corporate and formal? More…