Back in summer 1994, my father started to take serious steps toward starting his own business. It was something he had talked and dreamed about doing for years, but the leap from dreaming to doing, as many of you know, is huge.
Finally, one day he had endured enough at his place of employment and that fateful piece of straw landed…the camel’s back was broken, and this idea started taking shape into something that would become real—very real!
Of course, the odds were against him and his young family.
Startups are risky. He still had small children at home and so many people warning him, “Too risky;” “Be careful;”, “Are you sure you really want to do this?”
Despite the potential hazards, he pressed forward with courage to accomplish his dream of owning his own business.
The company started with a business plan, then a square concrete pad, then a building, then the original pieces of fabrication equipment.
Opposition and setbacks were upon the company almost immediately—one of the first was trying to get the driveways and loading docks poured in blizzard-like conditions as unexpected and surprising snowfall arrived in mid-November.
In early December, before we had opened our doors for business, a thief broke into our building. He stole a work truck, two welding machines and $5,000 worth of hand tools. In the process, he decided it would be awesome to wreck the new building by smashing the forklift through the overhead doors, not only to steal but to vandalize our facility, causing an immense amount of damage.
I remember the shocking feeling of despair that ran through my body when I arrived, early that morning, to find the damage. I was numb—it was a gut punch extraordinaire. Like most startups, we were lean on cash and bootstrapping wherever possible. The monetary loss, at the time, was significant—probably around $30,000.00 that was, essentially, flushed down the drain.
Even worse than the money, was the feeling of defeat—how would we recover from this and why did we have to face this when things were already so hard.
Collectively, as a family, we steadied ourselves and refused to give up. From that point forward until we installed a security system a week later, I would sleep at night—shotgun under my cot—out on the shop floor.
The date finally came, December 1st, 1994, when the big machines were set and a few key men hired to open the front door for business.
We would sell our fabrication services in the day and lay tile, paint walls and set bathroom fixtures by night. The whole family was involved. It was stressful and we worked our hearts out—indeed it was a family business.
Diane, my mom and Melissa, my sister were office administrators. My little brothers were delivery boys and shop help. Mel, my dad, was the everything else: sales, estimating, purchasing, operations, human resources and, most of all, Chief Motivator as in every-thing-gonna’-be-alright!
Like any startup, we faced many hiccups and stumbled often—there is so much to learn.
I remember one day driving a much needed group of checks to deposit at the bank with my mom. We were in the car talking—feeling stress to meet payroll and bills. My mom and I had an unexpected verbal exchange that started so innocuously. However, before I knew it, we were, essentially, stabbing each other with words and she began crying.
I felt horrible. In fact, I can recall those feelings to this day. My mom needed reassurance. I realize now that so did I. We both needed reassurance that everything was going to be all right but instead I ended up cutting her to the core with some course comment.
I mainly remember that she was taken-back, like her breath had been knocked out of her. I knew immediately that I had crossed the line! I had gone too far!
Tears streamed down her face as we drove back to the business in silence.
We, of course, worked through it but the point is that the pressures of family businesses drove, and can drive, for any family working together, incredibly painful conflicts and emotional barbs between the people that we love the most.
Every family member must realize that these complex circumstances are very difficult to maneuver and worth real attention. Startups are very often very stressful but so are businesses that have been working for many years. When multiple layers of family start working together there are bound to be conflicts that are hard to manage because of the family dynamics layered into the business.
Business conditions impact family relationship and, visa versa, family relationships can impact business conditions. Like deadly forest fires, when the conditions are just right, punishing flames can scorch a business or family almost overnight.
Be smart enough to thin the forest of unwanted and decayed undergrowth, which isn’t to suggest firing family employees or ripping family members out of your business, but is more to the point that these issues cannot simply be ignored.
Pruning your business means managing your business and making intentional efforts to consider the family relationship issues which, like it or not, are a big part of how your business operates. Do what it takes, even when it feels like it can wait or feels uncomfortable, so that the conditions for fire are minimized.
There are many things that require attention. Many of them can wait but most family business patriarchs wait too long. Consider, honestly, if your family business is implementing and preparing ways to manage the following:
Ownership & Leadership Succession Plans: who will own the business; how will equity be handed off; when will it be handed off; how will it be handed off; what about family members that do not work at the business?
Financial Succession Plans: how much money will each person make; are buyouts expected; how will the buyouts be organized?
Risk Management: is there keyman insurance or disability insurance in place; what are the biggest failure risks that the company faces; are those risks being actively addressed?
Performance Expectations: are family members pulling equal weight; is there weak spots in your organization because of poor performance; is there a way to address performance issues that do not damage family relationships?
Business Planning and Strategic Vision: how does everyone get a voice in the company; how does the business manage differences of opinion?
These are just a few thoughts—actually pretty common issues that many family businesses don’t specifically address. Why? Well, it is hard—feelings can get hurt, opinions can vary significantly and often it is easier to wait ‘til next year to deal with it…until next year, turns into next year, turns into next year and soon it is too late and plans give way to emergencies and survival.
Family businesses can be run professionally and effectively. They can be run successfully and without drama but the ground work must be laid correctly and intentionally.
Learn more at www.familybusinesspointe.com.