Keeping the Family Business Healthy: Four Keys to Success

Keeping the Family Business Healthy:
Four Keys to Success

by Karen Vinton

Family business plays a major role in our economy. It is estimated that over 90% of all businesses are family-owned or controlled. These businesses contribute almost 50% of our nation’s GNP. Yet what are the typical stereotypes that surround these businesses? We frequently think of “Mom and Pop” stores, the undeserving child who inherits the business, the family squabbles which end up in court, and family businesses as portrayed on TV and in movies (Bonanza, Dynasty, etc.).

Many of these stereotypes tend to be very negative and may lead us to make wrong decisions about our own family businesses. In fact, some consultants and business experts say the way to “save” a family business is to take the “family” out of the business! But is this practical advise?? NO!!! More…

The Non-family Members of a Family Business

 

The Non-family Members of a Family Business

Delaware Business Review
by Nancy F. Blumberg, CPA, CFP
Simon Master & Sidlow, P.A.

Key non-family personnel are just as important to successfully operate a family business as family members are to the business. Attracting and retaining these non-family members will help the family firm grow and prosper.

There are a number of creative ways to keep those key employees happy without jeopardizing the family’s control of the business. To determine the most rewarding benefit to the key employee, first the owners need to be aware of the non-family manager’s expectations and concerns.

It’s not unusual for a key non-family employee to expect sick leave, disability, retirement and medical benefits.This employee will expect to be comparably compensated to others on his level in the industry.

Concerns that need to be addressed are: if the employee remains healthy, what will the employee have at the end of this tenure?Also, what happens if the company goes through a succession during the employee’s tenure – what part will the employee play? More…