Posting by:  John C. Morris, CFP
Date: August 9, 2010

Most of us are aware that former New York Yankee’s owner, George Steinbrenner, passed away in July of this year.  However, what most people do not know is that the controversial owner’s death was as well-timed as a Derek Jeter home run swing.  As Dave Carpenter and Stephen Ohlemacher of the Associated Press put it, “Steinbrenner's death Tuesday [July 13, 2010] came during an unplanned year-long gap in the estate tax, the first since it was enacted in 1916.  Political wrangling has stalemated efforts in Congress to replace the tax that expired in 2009.”  By dying in 2010, the billionaire owner's wealth avoids the federal estate tax, likely saving his heirs enough money to buy several more championships (coming from the perspective of an Orioles fan).  The Steinbrenners therefore are expected to avoid what happened to the family of Chicago Cubs owner P.K. Wrigley after he died in 1977.  The family was forced to sell the Cubs to the Tribune Co. four years later to pay the taxes on Wrigley's estate. 

What Can We Learn from Big George’s Passing?

When it comes to the death of an owner or key person in a family business, we cannot all have the timing of Mr. Steinbrenner.  For those of us who cannot control an untimely death, succession planning with a well-drafted and -funded buy-sell agreement is essential.

Posting by:  Debra Andrews
Date: July 26, 2010

Your family business can make the best product or provide the best service, but if no one knows about it, you may not stay in business for long.  It seems silly to mention that marketing and public relations (“PR”) as necessary tools for a family business, or for any business for that matter, because of course they are essential.  What I’m referring to here, however, are unique opportunities available to family businesses that may assist in getting your press release posted, your company’s name listed in different sections of the newspaper, or even that feature story successfully pitched to the desired niche publication.

Being a Family and Being a Business: Doubling Your Opportunities

If you look at it from the angle of a publication’s editor, each period (day, week, month, etc.) there are pages or Web pages to fill with material, and different topic and focus “buckets” that each require such material.  A standard business, for example, may write a “Letter to the Editor,” be in a “milestones” or similar section regarding endurance of company, appear in a “What’s New” area, or be the feature story for the theme that edition.  A magazine may have 10-20 different regular segments that each require a different format, angle, length, and other specs to be accepted.

Posting by:  Margaret E. Wilson
Date: July 12, 2010

It has been said that in the next five or six years, 40% of all family enterprises will change hands. That means that every year, thousands of family companies are wrestling with issues like management transition, successor development and ownership transfer. However, working on those transition issues may not amount to much if you haven’t also taken steps to keep the entrepreneurial spirit alive. There’s no question that many family companies were founded by people with extraordinary vision and passion. But where do things stand today?

Take a look at these characteristics of entrepreneurs and entrepreneurial companies and answer the questions for yourself. Just how entrepreneurial is your family business?

Creativity
In some family enterprises, there’s an unspoken belief that creativity is reserved for writers and musicians. In others, there’s an underlying mindset of “this is the way we’ve always done it.” Either attitude can stifle creativity, which is a precursor to innovation, which is essential to entrepreneurship. Creativity comes in many forms – the ability to generate multiple approaches to a problem, having heightened perceptions or awareness, seeing things differently or seeing different things. Which of those creative talents are present in your business? What are you doing to develop them?