A father and son discuss their family business future … at a bar?
“So, what you have to do is take your son out for a beer and ask him.”
An advisor to a small business owner, as he grapples with deciding to sell his business or consider passing to his son, who’s been working there several years.
Seriously, do you really think it is that simple?
The advisor might have great intentions of not wanting to make this once-in-a-lifetime decision more complex than it needs to be. The problem is that he might be projecting his own family relationship context into his clients and assuming that this approach will work.
And, he is not appreciating the deep emotional fog that these conversations about the future can create.
Finally, we all know how alcohol can affect our judgement and decision-making … let’s park that issue for this article.
Let me share with you with this really looks like. I just finished having a conversation with a business owner of a successful landscaping company. Here is his situation.
Scenario
Successful owner in his late 50s is nearing a transition point.
Partner buyout is complete, and he wants to reduce his workload.
His son is engaged but not yet leadership ready.
His son has one child, with twins on the way
Outside buyers have expressed interest.
Family conversations about the future remain informal and inconclusive.
If you are the business owner’s trusted advisor, what do you do?
Providing an open space for sharing of thoughts and ideas is key. No matter how strong the father-son relationship is, a local pub is not going to provide this space!
First, you will want to create the right environment where you can ask a few questions to gain clarity on a few things (many initiate by taking your client to lunch):
What is your client’s vision of keeping the business in the family? Has he thought what this would look like if they became a multi-gen family business? How important is this to him and his family? What assumptions might they be making?
If this has some merit, what are their family relationships like – inside and outside of the business? How often do connect outside of the business, if at all?
How does the owner view their son’s capabilities – what key characteristics is he looking for to confirm he is ‘ownership’ ready?
What other children might be impacted -though they may not be part of the business … yet?
Has he thought how he would like reduce his workload? What roles & responsibilities could he delegate to his son - and/or others in the business?
What conversations and/or assumptions about the future have been discussed?
What challenges is the business facing and what do you know about the background of the family member(s)? Have they worked in other companies, industries in the past? What is their schooling and leadership development background?
Has he thought about longer-term? What interests and hobbies, other projects, ventures does your client hope to have more time for?
These once-in-a-lifetime decisions need to begin slowly, intentionally, and a with a bit of formality.
And, they need space for reflection and momentum. The first conversation with your client will likely be awkward, and expect that they will not have the answers, and that is ok. Tell him you will follow up in a couple of weeks.
DO NOT WAIT UNTIL YOUR NEXT CHANCE CONVERSATION WITH THIS CLIENT. ANOTHER YEAR WILL GO BY AND THIS IS TOO IMPORTANT!
Unfortunately, these infrequent conversations are all too common …and it is robbing communities from thriving family businesses who build thriving communities.
If you have this conversation and it leads to a few next steps for either of you … this is a win!
Reach out as I would love to hear how you make out, and happy to help providing the space, the process and the tools to make these conversations and Continuity Planning in general more frequent … and actually fun!