Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
Do you have a question for Rock LaManna and the LaManna Alliance? Submit it here.
******************************************************************************************************************
Dear Rock,
Our company is at an impasse. We are a family business, and there are some personal conflicts that are spilling over into our business decisions. Specifically, there is the matter of my father nearing retirement age, with no clear designation of what the company will do when he’s gone.
My father has done a fantastic job growing the company, but he’s having troubles letting go and passing it on to his kids. Part of the issue might be that it’s his company and he built it. Part of it might also be that my brother and I (we are the only two involved in the family) are a bit at odds, primarily because his wife tends to think more about herself and money and less about the long-term benefits of the company.
I know you give advice on financial matters for a company, but what do you do when personal problems affect your business decisions?
Let me start out by saying that we begin any analysis of a business problem by looking at the financials – even if there is a personal problem. In fact, especially if there’s a family business conflict.
In a family business, the family structure and the business structure will overlap. In your case, they are overlapping too far, and your father’s sound business decision is being clouded by the emotional complications of his sons’ conflict.
At some point, your father needs to sit down and analyze his future – where he’s going to go with the business, how the company will run when he leaves, etc. But that time is not right now.
The first thing your father needs to do is talk about his problems. I don’t doubt that he’s got a lot on his mind, and if he’s anything like the entrepreneurs I know, he’s keeping it bottled up inside, thinking he can fix it for himself.
He needs to talk to someone about the problem. If he can talk about it, just take that first step, then he can start to figure out the next step. And the step after that.
Eventually he will get to the financials, where all the decisions can be reached. But for right now, you need to get him to talk to someone trained in dealing with conflict resolution and/or family counseling.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly about family business solutions for the printing and print-related industry.
