Teddy’s Transport is a perfect representation of a successful family business. Founded in 1982 , Teddy’s Transport is a nationwide, expediting service. It was started by Ted, or “Teddy”, and Mary Gibbs. The business was later purchased by their daughter and son in law, Helen and Craig Zeerip. Helen is now the current President of…
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Member Spotlight: Hylant Family (part two) Last month we shared with you the story of the Hylant Family Business from the perspective of 2nd generation Mike Hylant. Mike shared with us the history of Hylant and what it has been like for him working in the family business. Many of us know Mike’s son, Matt Hylant….
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David Hodge, CFA, CFP Gimbal Capital Management Gimcap.com Tell the story of GCM, how it was founded & how it became a family business. Gimbal Capital Management was founded in 1994 by Dan McAdams to provide investment management services to families in West Michigan. Dan got his start in West Michigan as a commercial lender…
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NextGen leaders have a unique opportunity to increase the financial value of their company by driving three key conversations with the NowGen that can mitigate business (and valuation) risks. Here are the risks and their counter-balancing conversations: Valuation Risk – Revenue Growth How does the company grow? Are there new products or innovation? Markets and…
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Hylant started as a Toledo-based insurance company in 1935. In the late 1980s, the third generation of the company made the bold move to expand the business to new markets. Today, with third and fourth generation family members in leadership, Hylant has 14 offices in six states with nearly 700 employees. Despite the company’s growth,…
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As president of Grand Rapids Label and chair of the Family Business Alliance, Bill Muir understands what family-owned companies are going through right now. According to Muir, manufacturers remain optimistic heading into the new year, and they’re making more investments to support their customers. Eventually, the economy will go into another cycle and we’ll have…
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In 1905, just three years after moving to the USA from Sicily, Giovanni B. Russo started what is now called Russo’s International Market. Today, this fourth generation thriving family business is run by seven family members. To get to know a little more about Russo’s International Market, we talked with Kelley Russo who is part…
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When you’re born into a family business, you inherit not only the business and the family legacy—you most likely also inherit partners (aka cousins and siblings). No matter how tight-knit your family may be, there are certain challenges when it comes to transitioning from family member to co-worker to partner. Dana Telford, Principal Consultant with…
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Jennifer Remondino and Daniel Borst, attorneys with Warner Norcross & Judd, did not disappoint at the FBA’s sold out November Lunch & Learn on Estate Planning for Family Business. Jennifer and Dan shared the key to success for family businesses that defy the odds and successfully transition from generation to generation: It takes thoughtful, proactive…
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King Milling Company: 5th Generation and Forward In 1900 Thomas F. Doyle bought into King Milling Company, a move that would change the trajectory of his family for generations to come. Today, his great-grandsons are running the business and the fifth generation is coming on board. We recently talked with Brian Doyle, fourth generation…
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An unofficial theme of the 11th Annual Family Business Forum was culture—defining it, living it and understanding the difference it can make for family businesses, their employees, and customers. The event began with a conversation between Chris Shepler, president and third generation of Shepler’s Mackinac Island Ferry, and Dr. Don Steele, co-author of Undefeated: The…
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How Kent Companies is Growing Talent Outside of the Family Tree Attracting and retaining top talent is important to your business—after all, turnover comes at a high price. When it comes to attracting and retaining employees, family businesses that brand themselves as such have a leg up on the competition. In addition to the family…
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When you think about your business and its brand, what words come to mind? Pause. Really think about this for a moment. Jot down 3-5 words. So, what words made your list? Quality? Service? Innovation? These are all great words. But, what about family—did it make the cut? If not, we suggest that it should….
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If you missed last week’s Family Business Alliance event, not to worry, we’ve compiled a recap for you. The event featured a fantastic panel facilitated by Joe Schmieder from the Family Business Consulting Group. Panelists represented the four generations active in family businesses today: • Leon Slikkers, S2 Yachts, representing the Traditionalist Generation (ages 72-95)…
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One mid-November night, I was driving down a country road with my 15-year-old son. I was distracted by intractable problems going on within my family. Suddenly, I saw a stop sign whizzing by me, and I realized there was no way I could stop in time. We hit a car going 40 miles per hour….
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In the world of many privately owned businesses, there are at least three competing areas to manage actively. These three areas are family, ownership, and management. These three distinct interests can intersect with one or both of the others. This is what can cause conflict and be difficult to manage. Management functions refer to the…
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Are you the next generation of your family’s business? Do you currently serve on a board or want to serve on a nonprofit board? If it’s the latter, why do you serve? Are you an effective board member? Perhaps you would like to do more for the organization but can’t seem to make the time….
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A recent interview with our very own Ellie Frey Zagel, Director of the Family Business Alliance, on the topic of where talent acquisition and retention fits in the realm of family owned business.
More than 200 million Americans made New Year’s resolutions this month and, yet, only 8 percent will keep them. Most people make the same resolution 10 times without success. That used to be me — but not anymore…
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“It happened to me.” I heard that repeatedly after a Family Business Alliance session earlier this month on “Fraud and Embezzlement in the Family Business.” Tyra Dellacroce, the second-generation vice president of Connecticut Stone, shared a very honest — and very painful — story about an embezzlement that shook her family business. Since that session,…
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Sprinkled among the political thunder and lightning we’ve tried to escape this year is a proposal to change tax rules affecting transfers of ownership of family businesses. There’s a lot of hype, panic, outrage and confusion over proposed changes to Internal Revenue Code (“IRC”) Section 2704. If your family owns a business and has been…
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Which type of business owner are you? 1. “I plan to stay at the helm of my business until I drop,” or 2. “I’ll work hard now, so I can enjoy life in retirement.” If you identify with either of these, you know where you stand. Many business owners, however, have difficulty thinking about long-range…
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What does it take for a family business to be world class? There are four well-known best practices derived from studying multigenerational family businesses the world over. These best practices are found in family businesses that have successfully transitioned to a third or subsequent generation. They include having: A strategic planning process and written plan….
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Everyone has that odd uncle who shows up at family events and creates awkwardly memorable situations. What if that uncle is not just a family member but you “get to” work with him every day in your family business? Family businesses often have an interesting cast of characters, each of whom contributes uniquely to the…
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Have you ever seen someone walk unsuspectingly into a glass door? I’ve been that person. What’s the worst part? Knowing it was totally preventable. While that scenario may be funny, creating and executing your exit plan is serious business. There are four common mistakes I see family business owners make in their exit plan —…
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Are you the founder or next-generation owner of a company? When at work, do you see family members on a daily basis? If you answered yes to these questions, do you consider your business to be a family business?
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It is no secret the odds are stacked against closely held business owners when it comes to successfully transitioning their businesses from one generation to the next. Many owners are aware of the odds but find it difficult to start the transition process. This is understandable considering the process can be quite overwhelming: the creation…
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According to the Family Firm Institute, only 30 percent of family businesses survive into the second generation, and by the third generation, only 12 percent remain viable. There are many reasons family businesses fail, but all too often they succumb because the owners are overwhelmed and “too busy” to deal with the prospect of transitioning…
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Nearly all family businesses are created with the intention that the business will grow and be successful, generating value for its owners, employees and community, well beyond the lifespan of its founders. The family ownership group should recognize that, after they retire or move out of the business, the business entity must continue to survive…
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In family-owned businesses, the line dividing your business and your personal life is already blurred. For many generational family businesses, the lines are more blurred today than ever before, as technology keeps us connected and “on the job” even when we’re on vacation. But while you may find yourself working 24-7, it’s still important to…
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According to the U.S. Census Bureau, in 2015, the millennial generation or “Gen Y” (those born from 1981 to 1996) is projected to outsize the baby boomer generation as the nation’s largest living generation. There is a projected $30 trillion transfer of wealth from the baby boomers to their millennial heirs. Outlined in this article…
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Family business is one of life’s most exciting, challenging and rewarding endeavors. When you decided to start or become involved in a family business, you probably had certain objectives in mind. Your list may have included any number of unique goals, but two are common for many family business owners:
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Most family businesses fail by the third generation, but few family business owners anticipate or acknowledge the risk of failure, according to data compiled by the Family Business Institute. According to the Institute, only 30 percent of family businesses survive into the second generation, 12 percent survive into the third generation and just 3 percent…
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The next generation of family business owners is required to be many things. They are expected to be smart — even smarter than their talented entrepreneurial parents. They also are expected to be financially fluent. Many will learn financial skills by accident and/or on their own, and this self-taught process tends to happen later in…
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The ability to attract and retain talented employees is key to the long-term success of any business. If you own a family business, you may be one of the lucky few that have found all of your key talent within the family. More likely, and especially as the business has grown, you’ve identified the need…
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For most of us (or perhaps all of us), writing checks to the IRS does not make our Top Ten list of things we look forward to. This year in particular was likely more painful for many business owners and other taxpayers due to a series of significant tax changes that took effect in early…
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Research tells us there are three key factors for the perpetuation of a family-owned business: having a strategic plan for the business, using a board that includes outside directors, and holding family meetings. A good strategic plan helps grow and sustain any business, so that one comes as no surprise. And many family-owned businesses have…
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The manager of a family business who is considering retirement often has four goals: paying as little in taxes as possible, keeping the business in the family, treating heirs fairly, and ensuring competent successor management. However, achieving these goals is often a challenge. A business exit must be custom fitted to your financial situation and…
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It’s never easy to step into a leadership role from outside an organization. Michael Watkins, an authority on leadership transitions, has concluded through his research that 40 percent of executive leaders hired from the outside fail within 18 months. He estimates the cost to the company of a failed leader at 14 times the leader’s…
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As the material participation debate continues to ripen, taxpayers and tax professionals are provided with the sweet taste of clarity surrounding the question of whether a trust may materially participate in a trade or business. To the present day, overcoming the “material participation” hurdle of the passive activity loss rules has been a prevailing concern…
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Employee Stock Ownership Plans, or ESOPs, have been used as succession planning tools for family-owned businesses for 40 years. However, not all business owners or their attorneys, accountants or other advisors are familiar with the advantages an ESOP offers to a family-owned corporation and its shareholders. To test your ESOP IQ, let’s take a little…
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Last year ushered in many changes on the tax front resulting from the American Taxpayer Relief Act and the Patient Protection and Affordable Care Act. For family business owners, a better understanding of these tax law adjustments can help them plan accordingly. Most successful business owners are puzzled by use of the word “relief” to…
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Are members of the next generation of the family business considering working for the family firm? Perhaps they live and work elsewhere and are thinking about returning to West Michigan because they see the incredible growth, excitement and opportunity taking place here. Perhaps they are still in school and are considering all of their options…
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A recent study by Nicolas Kachaner, George Stalk and Alain Bosch published in Harvard Business Review (Nov. 2012) indicates family-run businesses have an innate advantage over other models. Looking across business cycles from 1997 to 2009, the study cited seven reasons family businesses outperformed their counterpart nonfamily enterprises: They’re frugal in good times as well…
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Financial literacy — the knowledge of financial matters needed to make informed judgments and decisions on the management of money — has become an increasingly important skill for anyone making decisions in today’s economy. Perhaps nowhere is financial literacy more important than within a family business. Knowing the basics of credit and debt, how to…
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