sponsored by Bond Beebe http://www.dcfamilybusiness.com Fri, 10 Sep 2010 22:05:01 +0100 FeedCreator 1.7.2 http://www.dcfamilybusiness.com/images/M_images/dcfba-logo.png http://www.dcfamilybusiness.com sponsored by Bond Beebe http://www.dcfamilybusiness.com/blog/picking-a-good-time-to-die-george-steinbrenner-s-final-lesson-to-family-business-owners.html 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. Mon, 09 Aug 2010 10:27:07 +0100 http://www.dcfamilybusiness.com/blog/leveraging-your-family-business-for-public-relations-opportunities.html 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. Mon, 26 Jul 2010 13:19:19 +0100 http://www.dcfamilybusiness.com/blog/how-entrepreneurial-is-your-family-business.html 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? Mon, 12 Jul 2010 13:04:31 +0100 http://www.dcfamilybusiness.com/blog/can-you-hear-me-now-the-continued-importance-of-clear-communication.html 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. Wed, 07 Jul 2010 11:11:15 +0100 http://www.dcfamilybusiness.com/blog/whose-de-fault-is-it-it-s-all-greek-to-me.html 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. Wed, 30 Jun 2010 10:11:57 +0100 http://www.dcfamilybusiness.com/blog/lessons-from-a-defense-contractor-guru.html 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. Thu, 24 Jun 2010 09:30:04 +0100 http://www.dcfamilybusiness.com/blog/family-businesses-have-a-powerful-marketing-differentiator.html 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. Tue, 22 Jun 2010 09:54:04 +0100 http://www.dcfamilybusiness.com/blog/what-does-it-take-to-be-successful-in-family-business.html 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. Mon, 24 May 2010 09:53:34 +0100 http://www.dcfamilybusiness.com/blog/five-attributes-of-the-enduring-family-business.html Posting by: Eileen O’Connor, CFP, MBA Date: May 17, 2010 As part 2 in a 5 part series, I will next be reviewing the second attribute that McKinsey Company, a leading strategy consulting firm for Fortune 500 companies, says is critical to ensure that a family business endures multiple generations. These attributes are fairly unique to family businesses, an oftentimes overlooked ownership structure, but one that permeates our entire economy since family businesses are all around us. In my last blog, I discussed the first attribute, Family Governance through formal forums, policies and/or services. The second attribute relates to the formality of ownership structure(s) as depicted in shareholder agreements, holding structures and codified in legal documents. To read the complete article to go: https://www.mckinseyquarterly.com/The_five_attributes_of_enduring_family_businesses_2498 (https://www.mckinseyquarterly.com/The_five_attributes_of_enduring_family_businesses_2498) Mon, 17 May 2010 09:51:51 +0100 http://www.dcfamilybusiness.com/blog/chapter-11-bankruptcy-not-the-final-chapter-for-family-business-success-story.html Posting by: Debra Andrews Date: May 12, 2010 Next year will mark the 100th anniversary of Boscov’s department store, a chain founded in Reading, PA in 1911, with approximately 40 stores on the East Coast, including three in Maryland. It is also America’s largest family-owned independent department store chain. This alone makes the retailer an interesting story for a family business blog posting. But in the past few years, as we’ve been watching the demise of some beloved and some lesser-known family businesses in our region and across the country, hit hard by the economic recession and the changing tastes of the public, it’s encouraging to see the Boscov’s family – both the literal family, and that of their employees and community – fight the good fight and make out even better. Although the story starts at Chapter One with the founding by Solomon Boscov, let’s move to Chapter 11. Wed, 12 May 2010 09:51:11 +0100