Family Business Today Blog
Family business owners often get tangled up with being “fair,” especially when they make their children stockholders in the business. We get the question often: “Should we pay bonuses, or dividends?”
Unless you are good with the numbers and tax law you should turn to a CPA or tax attorney for help. That is a good place to start, because bookkeeping and staying current with the tax man is no laughing matter…
Harvard Law School’s Negotiation Program has some famous stories. I was surprised to come across their research into several business conflicts between the three surviving children of Dr. Martin Luther King, Jr.
In his most famous line from his most famous speech, Dr. King dreamed of a world where his children would be judged by the content of their character, instead of the color of their skin. I say “Amen” to that…
Buy-sell agreements are an essential part of your personal and business estate planning process. They may not be the most “fun” part, but they get a lot of hard questions answered in writing.
It’s your opportunity, along with the members of your family who own the business, to figure out what you will do as a family in any given situation. The more owners there are, the greater the need for you to make the company’s plan legally clear, in a way everyone agrees to.
One thing that’s bound to cause a stir in planning the future of your family businesses is what’s “fair” versus what’s “equal.”
It’s common for family business owners to want to distribute ownership to their children equally when they pass, just like any other asset. But unlike cars, houses or your financial portfolio, a business may mean far more to one child than another.
What we know is that family businesses are strong. This strength comes from their multi-generational perspective and a history of success during adversity. As family business leaders you have weathered difficult times with composure, calmness, and clear-minded leadership. You will do it again during the current crisis. Here is a collection of lessons we have learned from you.
For those of you who know me and have heard my story, you know that I worked with my Dad in our family business for over 17 years before leaving the family business. The last 5 years of our working together were the most tumultuous as I had finally come to realize that Dad’s idea of someday this business will all be yours was like Prince Charles being the heir to the throne of England. He knew and I knew that Queen Elizabeth and my Dad was never going to give up the throne…
If you’ve been a part of a family business, even for a little while, you know that unexpected things happen. Plans get changed or derailed. Disagreements arise. Founding family members, being so used to running the business on their own and calling all the shots, get side tracked in pursuit of opportunities that no one else is aware of.
Tennessee Center for Family Business, 610 North Garden St BSMT,
Columbia, TN 38401, United States
(O) 615-513-9028 info@tncfb.com
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