By Dan Beenken, Advance Iowa program Director
August, 9, 2018
Mixing family and business – is often said to be a dangerous proposition. While that can be true, it doesn't have to be. Iowa’s economy is built on longstanding, family owned firms – so we know it’s not impossible. The key ingredient to harmony? Structure. I know most people don’t like it and would rather float along without it. But in a family-owned company, its crucial. Planning, designing, AND communicating that structure can go a long way toward reducing conflict for the next generation. Stats are often cited that less than 1/3 of all family businesses survive to the 2 nd generation, and of those, less tha... Read More
By Casie LeRette, Advance Iowa Program Assistant
To us, the benefits and importance of family businesses networking together are clear. Our mantra ‘family businesses are different’, is not just a catchy phrase. We believe family businesses are different due to the result of the unique challenges during their start up, and those which continue through the life of the business. While every b... Read More
Exit Planning can be complex. Between setting your exit goals and transferring your business, you’ll attempt to build business value, find an appropriate successor or buyer, navigate perplexing tax implications, and keep your key employees onboard. And that’s just a few of the things you’ll do! With so many considerations surrounding your business exit, you may want to consider creating an Advisor Team. Simply put, no single advisor has sufficient expertise to create and implement all of the activities required in a typical Exit Plan. To give yourself the best chance to exit your business on your terms, you’ll likely require the services of several advisors from different fields. These ma... Read More
By Jason Daley, Magazine Contributor via Entrepreneur
When Jon S. Crowe invited his son, Jon P. Crowe, to take a road trip from their home in Omaha, Neb., to Whitewater, Wis., neither of them had ever, for a second, thought about working together. The elder Crowe was heading east to learn more about the Toppers Pizza franchise business and just wanted his then 25-year-old son, who was working in retail at the time, along for company. “Working with my dad did not cross my mind,” Jon P. says. “I was there looking out for him and our family. I just wanted to put my two cents in.” Jon S. had long known just how suited to running a business his son was. Jon P. was levelheaded.... Read More
Planning a business exit can seem like a lot of work at first. From building business value to developing capable successors to figuring out exactly what you want to do with your life after you leave, Exit Planning might look like too much work for one person to do. In our experience, Exit Planning isn’t something that business owners can tackle alone if they want to exit on their terms. But with so much to do, where can you start? One way to begin the Exit Planning Process is by writing your Exit Plan down. Writing your Exit Plan down can provide three potential benefits when done properly. Increasing Clarity, Accountability, and Chances for Success Written communication is often clearer... Read More
CEDAR FALLS, IA-- Advance Iowa, a program hosted on University of Northern Iowa’s campus, will be expanding their services to include meeting the needs of family owned businesses in Iowa. The Family Business Forum Breakfast Series is designed to bring families together to learn best practices from experts and other family businesses who are navigating the landscape of owning and operating a family business.
All in the Family: Family Business Succession Planning Breakfast, the first of three meetings, will take place on September 28th a... Read More
When business owners start their businesses, they often create a written business plan to guide them toward success. However, many successful owners don’t mimic that process when they begin to approach the end of their business ownership.There are three areas in which forgoing planning for the future can create unintended consequences for business owners: money, time, and successors. Consider how a thoughtful planning process (or lack of one) can affect each area.
Planning Affects More Tha... Read More
By Josh Baron, via Harvard Business Review
I was recently asked to give a talk about family businesses, and the conference organizer told me not to even mention the “three generation rule.” As he put it: “Everyone already knows that family businesses don’t last.”He’s perfectly right. An oft-cited statistic is that only 30% of family businesses make it through the second generation, 10-15% through the third, and 3-5% through the fourth. These are dishear... Read More
If you’re considering transferring your business ownership to family, you might be tempted to put your family’s wants over your own goals. While this altruism may be admirable, it can also cause more problems than it solves. Consider the case of Darnell Orie.
Darnell Orie was unsure how to approach his business exit. His son, Hannibal, was the main reason why his company had tripled its revenues and profits over the last 15 years. And even though he wanted to begin winding down his own involvement in the business, he knew that he had to keep Hannibal motivated to grow the company: His retirement depended on Hannibal’s continued success growing the company.
Darnell had alwa... Read More