Professionalizing the Family Business

Professionalizing the Family Business

Family Ink

With a pragmatic approach and just the right dose of humor–much of which can be found in his book, “Someday It’ll All be…Who’s?”–Dr. Donald J. Jonovic, discussed “Professionalizing” the family business. His comments, before the Family Business Forum members at the George Rothman Institute on October 26th, touched on the benefits of an outside advisory board, getting the best from your professional advisors, and employing an open organization policy.He also challenged some old myths and talked about the rights and relationship of in-laws in a family-owned enterprise.

Owners of closely held companies, he said, tend to focus on the short term…dealing with immediate problems/challenges and rewards.But this, he added, is definitely not the way to insure growth and build shareholder value over the long term, whether you pass the business on to the next generation or end up selling it. More…

Will you be a Survivor

Will you be a Survivor

by Diane Denslow

Studies indicate that only one third of family businesses make it from the first to the second generation yet a majority of family business owners intend for their businesses to continue. What happens? Most businesses are sold to non-family members due to a lack of planning. The following are key areas to address if the family business is to remain viable and in existence for future generations.

Plan for a transition of leadership. A family business owner should begin this planning for transition a minimum of ten years prior to the time they plan to leave the business. Family members that will be taking over the management of the business must be prepared for their respective roles. This means giving them increasing areas of responsibility and the opportunities to develop the required skills so they are ready to take the reins when the appropriate time comes. More…