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?

Posting by:  Joel Susco
Date: July 7, 2010

Have you ever heard or said, “Boy, this task would be much easier if we had better instructions,” or “I wish this task had been better communicated to us?” 

No matter what your business is, much of your success is dependent on good staff communication.  We have found that our staff has been very receptive to the extent of information we provide to them.  Their feedback to us has been great.  We have heard, “This is more information than we had expected to be provided.”  Through trial and error, we have found employees who are unaware of what is expected of them seldom go above and beyond their potential.  Some believe that there is a direct correlation of performance, productivity, morale and even attendance of an employee to the amount of communication the employee receives.  We are taking an interest in them, so they are taking an interest in us.  I would think that you would agree with me that in most cases workplace communication is usually inadequate.  It is not that we need to be hovering over our employees instructing every move, but rather providing useful informative feedback and instruction, thus improving the effective communication with our employees.  An owner must build that trusting respectful relationship with your employees because without it, employees tend to determine what you say doesn’t really matter or become disinterested in your business.  They are merely putting in time to earn a paycheck.  Like all good relationships the amount of time and effort one commits has a direct correlation to the strength of that relationship.

Posting by:  Geoff Brown
Date: June 30, 2010

I was reading an article the other day about some of the budget woes facing various states across the country and it’s not a pretty picture, as several may face default at some point over the next few years.  For example: in ten years the state of Illinois will have to pay $14 billion annually in pension benefits, which will amount to roughly 25% of its budget.  I found that astounding.  Georgia’s infrastructure, which is woefully inadequate, is falling apart and the bill to fix it all is astronomical.  And we’ve all heard about California’s troubles.

It is disheartening news.  In better times much of it would barely get a mention, but today, with our economy mired in the doldrums and the federal government already having spent billions (or is it trillions) to keep our economic engine running, its big news.  At some point in the not too distant future, President Obama or his successor may be dealing with our own internal “Greece-like” situation.

Posting by:  Michael N. Mercurio
Date: June 24, 2010

“Simple plays executed with maximum effort.”            – Vince Lombardi

I recently attended a talk by Ron Jones, EVP of Corporate Strategy & Development of Global Defense Technology & Systems, Inc. (NASDAQ: GTEC).  Ron is responsible for accelerating the growth and corporate development for this over $200 million government contractor; his talk was impressive and inspirational!  

He spoke on “Supercharging Growth in the Government Contracting Arena” and gave as examples Gray Hawk Systems, Inc. and Veridian (NYSE: formerly listed as VNX), two companies he had led through incredible growth and sale.  For example, when he came to Gray Hawk, the company had received an offer of $40 million and just five years later it sold for $100 million.  While many businesses may not want to be quite so “supercharged” (Jones wants a ten-fold return within 3 to 5 years), it occurred to me that Jones’ message has value for all who run businesses, family or otherwise, including their advisors.

Posting by:  Debra Andrews
Date: June 22, 2010

Every day, we are bombarded with marketing communications.  From the television to electronic and print ads, to Twitter and Facebook, there is no denying that there is a battle going on for our attention.  Most marketing communications tend to slide right off of us like Teflon.  Are limited-budget companies hoping to make meaningful, lasting impressions on their target customers completely screwed?  If you are a family-owned and -operated company with a couple generations under your belt, you will probably be just fine if you play your cards right.

According to marketing god Jack Trout in Differentiate or Die, all companies looking to grab the attention of consumers must have a sustainable competitive advantage to help them stand out from the crowd.  “Heritage” is one of those powerful trump cards for two primary reasons. 

Posting by:  John C. Morris, CFP
Date: May 24, 2010

The answer to the titular question is ever evolving, and no doubt varies from business to business and family to family.  However, there are common threads that weave throughout successful family businesses, and a recent study conducted by Harris Interactive identified them.  The study pointed to four common success factors for family-owned businesses:

• Communication
• Work/Life Balance
• Trust
• Planning

Seemingly Standard Success Factors – But Not Standard Enough

When I read these findings, the thought, “No, duh!” came to mind.  However, very rarely are these actions and characteristics carried out on a regular basis in a positive and effective manner.  Why is this?  What I have seen in working with our clients is that the emotion that makes family businesses great can also inhibit the communication, work/life balance and trust within the business.  It is proper planning that allows that emotion to flourish rather than detract from these areas.