Mixing family and business
Discussion
My dad runs his own (successful) business. Today he asked me if I would like to come on board and run things for him so he could retire without selling. Without going into too much detail, what are peoples thoughts to this? Obviously I will be making my own mind up, I was just wondering if anyone has been in a similar position and what they did?
TotalControl said:
IMO taking over a family business is very different to actually working with family. Depends on the situation and/or if anyone else from your family works there.
it'd be with my dad for a while whilst I settle in and then he'll be farking off around the world for 9 months of the year. Pending your interest in what the company does, you should jump at the chance. You can perform well in a usual role, but running your own business you can make it your own, put your own ideas in alot easier.
I'd jump at it, in the short time I worked for a family business I enjoyed it more than all of my standard employed jobs.
I'd jump at it, in the short time I worked for a family business I enjoyed it more than all of my standard employed jobs.
I did this on the strict understanding that after 6 months my Dad would retire because I didn't think I could work with him for much longer than that. 3 years later he staill hadn't farked off and it was causing me so much grief I ended up selling the business in the end.
I got on well enough with him most of the time but he reacts really badly under pressure whilst I am very calm and he hates customers. Made me wonder how he'd managed to run it for the previous x years.
Now he comes and does bits and pieces in my new business but doesn't have any atress and doesn't deal with customers. I wouldn't work with him again.
Still, it was a good way to get your own business without having to build it up from scratch.
I got on well enough with him most of the time but he reacts really badly under pressure whilst I am very calm and he hates customers. Made me wonder how he'd managed to run it for the previous x years.
Now he comes and does bits and pieces in my new business but doesn't have any atress and doesn't deal with customers. I wouldn't work with him again.
Still, it was a good way to get your own business without having to build it up from scratch.
I run the business with my Brother (in theory)working for me as a specific director. It works very well for us as we both have very different qualities which compliment each other and we don't tread on each others toes. Family provides a very useful sounding board. It can be very lonely at the top.
The only thing which is VITAL is you must agree a date you dad leaves and make sure it happens. We did this so he couldn't continue to"help" in the day to day. He is now the non exec chair and puts useful strategic thinking into the board. I had to chuck him out his office though and banish him from the building as he would run his bits and bobs using my secretary then wander into a department and ask them to do something for him which would cock other things up.
As long as you can get your dad to let go of the day to day it can work very well.
The only thing which is VITAL is you must agree a date you dad leaves and make sure it happens. We did this so he couldn't continue to"help" in the day to day. He is now the non exec chair and puts useful strategic thinking into the board. I had to chuck him out his office though and banish him from the building as he would run his bits and bobs using my secretary then wander into a department and ask them to do something for him which would cock other things up.
As long as you can get your dad to let go of the day to day it can work very well.
TotalControl said:
IMO taking over a family business is very different to actually working with family. Depends on the situation and/or if anyone else from your family works there.
Agreed.Also, make sure your father has a robust exit strategy - I don't know you or your scenario, but I've seen quite a few similar situations where the founder/owner of the business (i.e your father) struggles to let go, and stays involved far longer than planned, causing frustration for the new owner/manager (i.e. you)
BrabusMog said:
My dad runs his own (successful) business. Today he asked me if I would like to come on board and run things for him so he could retire without selling. Without going into too much detail, what are peoples thoughts to this? Obviously I will be making my own mind up, I was just wondering if anyone has been in a similar position and what they did?
I have a family member who took over the family business (but in the end the father stayed on for a few extra years and two heart attacks) and all is well with them. In fact, the two brothers who work in the family business are, it seems to me, treated better than the one brother who didn't want to do it and wanted to live his own life......If you think you are capable and you will enjoy it, I'd say go for it. If however it is a business you don't like, then I'd say don't.
It's normally considered best practice to either sell the business or to recruit a successor who is qualified and capable of performing , rather than appointing a family member.
However, if you are capable of maintaining/improving the value of the business, and you feel comfortable with the role, it may a wise to consider having a clear an enforceable agreement in place with Dad.
All the best with it
However, if you are capable of maintaining/improving the value of the business, and you feel comfortable with the role, it may a wise to consider having a clear an enforceable agreement in place with Dad.
All the best with it
Jasandjules said:
BrabusMog said:
My dad runs his own (successful) business. Today he asked me if I would like to come on board and run things for him so he could retire without selling. Without going into too much detail, what are peoples thoughts to this? Obviously I will be making my own mind up, I was just wondering if anyone has been in a similar position and what they did?
I have a family member who took over the family business (but in the end the father stayed on for a few extra years and two heart attacks) and all is well with them. In fact, the two brothers who work in the family business are, it seems to me, treated better than the one brother who didn't want to do it and wanted to live his own life......If you think you are capable and you will enjoy it, I'd say go for it. If however it is a business you don't like, then I'd say don't.
"So, (pulls up counch) tell me about your childhood."
Two years ago I was in a similar situation. I'd been working in IT for 5 years after university. Ultimately, the plan was always to go into the family business but I brought it forward a few years. I'd got a new job (which I thought i'd love) in the office at 9pm on a Friday made me think that i'd rather be working these late long hours towards my own good so to speak. I finished my contract the following week and made the move.
I've not looked back since and having worked in other companies has given me a great start and ideal experience.
I've not looked back since and having worked in other companies has given me a great start and ideal experience.
Same situation for me, I joined the family business 16 years ago after uni and took over 3 years ago, working with family is massively difficult but my business was strong, well established and offered massive growth potential, as long as you can see a path and are prepared to shoulder the hassle there it's a great way to go, but you need to make it your own or add to what's there, businesses need to evolve
TotalControl said:
IMO taking over a family business is very different to actually working with family. Depends on the situation and/or if anyone else from your family works there.
I would run a mile from ever working with family, but this situation seems a bit different. But there are still concerns..For example, will your dad ever want to really give up? Will he still be trying to control the business, even into retirement? Will he still own a share of it?
Will you get flak from Mum because you are doing something Dad doesn't like? You could end up in a big falling out - not what you want with older parents. Think of the knock on effect with brothers, sisters too.. "you stole dad's business off him" "that was our inheritance too"
If your parents are desperate to retire and go travelling the world, then that's great. You know you'll be left to it. If not...
I work for a family company, MY family's company. Fifth generation, 138 years old type thing. A sense of history not to be taken lightly!
My old man is the Chairman and we are undergoing a three year process for me to take-over.
As the bosses son, everything I do is scrutinised, and I have to work 120% at all times.
The only complication has been my brother. We are complete opposites and I have found it easier to make relationships with staff. The directors created a company for him to run which sadly didn't work out with him running it. Current situation is that my old man hasn't seen his new grandson yet (1 month on).
That is the only drawback to family, but I guess it depends on each individual family situation and the type of company. We are very much SME, but turning over £10m, operating in 5 countries, with three either being co-ops with other parties or sole ownership by the UK company.
My old man is the Chairman and we are undergoing a three year process for me to take-over.
As the bosses son, everything I do is scrutinised, and I have to work 120% at all times.
The only complication has been my brother. We are complete opposites and I have found it easier to make relationships with staff. The directors created a company for him to run which sadly didn't work out with him running it. Current situation is that my old man hasn't seen his new grandson yet (1 month on).
That is the only drawback to family, but I guess it depends on each individual family situation and the type of company. We are very much SME, but turning over £10m, operating in 5 countries, with three either being co-ops with other parties or sole ownership by the UK company.
in 2000 I bought a branch of my mothers insurance brokers, but we have been broking in the area since 1946! I did it mainly as I couldn't work with her (still love her to bits, just different views), but to this days she still comes in every couple of weeks and get the staff to stufff for her, and speaks to them as though they work for her.
Luckiliy they just know when to ignore her!
Word of warning though, I went into a side business with my younger bro and we sold just before we killed each other!!!!
Luckiliy they just know when to ignore her!
Word of warning though, I went into a side business with my younger bro and we sold just before we killed each other!!!!
1) Are you interested in the core business?
2) Are you genuinely interested in the product / service you sell?
If yes....
3) Can you handle not speaking to dad/mum again?
4) Do you REALLY want to work with your family?
Having spent the past 3 years setting up an international unit of my family
company I can honestly say I'd never work with my dad ever again. Love him, but
all we spoke about was business, morning, noon and night.
How's your wife? followed by how's XYZ project what are we doing about ABC
Total head bender! and as for £ when it's good everyone thinks there entitled to
a slice, when it's bad you get the blame.
I'm now keeping up to date with the company as a SID (Senior independent Director)type
role and when dad's actually gone I'll pick up the torch, as it were.
Spoken from good/bad experience........don't do it.
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