{"id":83985,"date":"2021-05-14t12:00:22","date_gmt":"2021-05-14t16:00:22","guid":{"rendered":"\/\/www.g005e.com\/?p=83985"},"modified":"2022-12-22t00:43:17","modified_gmt":"2022-12-22t05:43:17","slug":"when-parents-children-hit-an-impasse","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/05\/14\/when-parents-children-hit-an-impasse\/","title":{"rendered":"when parents, children hit an impasse"},"content":{"rendered":"

\"overhead<\/a>four ways to proceed.
\n<\/strong><\/p>\n

by ed mendlowitz<\/i>
\ncall me before you do anything: the art of accounting<\/i><\/a><\/p>\n

many family-run businesses have parents and children who perform excellently together, and i have worked with many proud companies. however, occasionally there is a stumbling block, in that a parent and child just cannot get it together. what to do?<\/p>\n

more:<\/b> how bickering can ruin a family business<\/a> | ceos don\u2019t always know numbers<\/a> | finding new business in sustainability<\/a> | 14 simple, easy tips for a better tax season<\/a> | how to recoup staff training costs<\/a> | 10 ways to stay in control<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

in many small businesses an underperforming employee hurts, and oft times there is a reluctance to get rid of them. they linger on, holding back the company. it is inevitable that they will be gone at some point, but that point seems to be delayed past when it should have been dealt with. biting the bullet is necessary, and when the owners realize they are better off in the long run, they take the necessary step.
\n
\nhowever, let\u2019s suppose the employee is a son or daughter. then it isn\u2019t so easy, and could cause a war within the family. as an advisor i\u2019ve learned that providing honest advice is a death knell and will lead to eventually losing the client, and i am comfortable with that. i don\u2019t like it, but i feel it is important to do my job the best way i can and that the client is paying me for my advice, guidance and opinions.<\/p>\n

with children, i see four ways to proceed: 1) help the parent get rid of the child, 2) the child to get rid of the parent, 3) bring in a professional nonfamily manager, or 4) sell the business.<\/p>\n

i will deal with #4 first. selling replaces the cash flow stream the business provides with a fixed sum that will throw off substantially lower cash flow. if the family members rely on the business for their livings, then this is not a viable way to proceed. #3 is a realistic approach when it is clear that neither the parent nor child could manage the business effectively. this requires an agreement on the lack of management skills or desire and a joint cooperation to defer to a professional nonfamily person running the business. it works. the downside i\u2019ve seen occurs when the manager who is brought in turns out not to be the right person and is let go. the search process then restarts. it needs perspicacity and resolve. in one client i\u2019ve seen this work fantastically on the third try, so once the process starts, it needs to be followed through. in another case, the search process showed that one of the children was capable of handling the reins, and this also worked out great.<\/p>\n

#1 and #2 are harder. one has to step aside voluntarily or be bullied out. either could step aside but usually only the parent could be bullied out. reality indicates that the child or children take over a great deal of the day-to-day work from the parent and become indispensable to the daily operations, even if they do not have the talent to manage the entire business, be a leader and take it to the next level. the parent can\u2019t push out the child, and usually will not want to even if that is the right decision, because then the parents have to go back to doing the type of work they got rid of for themselves when their child took it over.<\/p>\n

the parents also risk a fight with each other because the one not fully involved in the business does not want their child pushed out. false starts are made trying to get the child the management and leadership training needed, but the child is too busy working. also, stubbornness sets in when the child wants an undeserved anointment as the \u201cboss,\u201d even if they are not ready. this creates massive family friction and unpleasantness.<\/p>\n

i\u2019ve seen these situations quite a few times. it works itself out when the child is given a personal assistant to take over many of the nonoperational functions they get involved in and operational people are added to relieve the business of the dependence on the daily work of the child. concurrently the child recognizes the need for management training and starts reading books and articles on the topic, listens to recorded programs, attends seminars and industry conferences where such speakers are scheduled, and joins a peer coaching group such as vistage. this is usually done during a \u201ccease fire\u201d and can take a couple of years. with the right attitudes, slow progress is made and one day it dawns on everyone that the child has earned the respect to have the head position.<\/p>\n

as much experience as i have, i still become involved with situations that are \u201cnew.\u201d the dynamics of people continually evolve and today\u2019s young\u2019uns are different than yesterday\u2019s. also, many parents with energy do not like to admit they are slowing down or need to step aside to some extent. our job is to gain trust, offer suggestions and project the situation if nothing is done versus making some changes. it also requires reasonableness from all parties and a desire to move the business forward.<\/p>\n","protected":false},"excerpt":{"rendered":"

four ways to proceed.<\/strong>
\nby ed mendlowitz<\/em>
\ncall me before you do anything: the art of accounting<\/a><\/em><\/p>\n","protected":false},"author":1341,"featured_media":70489,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1905,1363,3120,3002],"tags":[],"class_list":["post-83985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clients-and-service","category-featured","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\nwhen parents, children hit an impasse - 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