Saturday, January 31, 2009

Number 7. Who is your replacement?

During my consulting career with small and family owned businesses, I have been amazed at how many times an owner is in his/her sixties and have not thought of who will replace them. This is especially true in businesses where the owner does not have a relative interested in being in the business.


When should you begin your search for a successor. As soon as you can but not later than 5 years before your anticipated retirement date. Why because things change, times change and the economy changes and if you do not begin to groom someone to take over and something happens to you, what happens to your business. Or do you care? I have a friend who who owned several hotels/motels and various oil producing properties. He had 9 kids. He tried them all and none of them worked. He found out that his dogmatic "I am the king" attitude could not be replicated. So he got very frustrated and sold the business to a competitor this locking the kids out.


Another example is a CPA friend of mine who had built up a nice little practice. He met with his kids and none of them had the slightest interest in Accounting. He met with his top CPA's in the firm and agreed to transfer ownership over a 5 year period to that group. The transition is going very smoothly and because of his forethought and business style, by the time he leaves all the clients will be re-oriented to the new owners. They have agreed to have him stay for a year afterwards on a purely advisory basis.



What do you think?

Tuesday, January 20, 2009

Swearing In done now back to business

Well I just finished watching Barak Obama be sworn in as the 44th President of the United States. Quite historic. I know that there are those who are mad because he is black (well, not really. Half black), and those who are mad because his middle name is Hussein (I do not like that either but he did not give it to himself and I HOPE it does not define him), and those that are mad that he is Democrat (me too and we will see), and those who are mad because he is so young and inexperienced (he is young and idealistic and the office will be a hard reality and, unless the person taking the oath is doing so for a second term, no comes to the office experienced. The closest would be a Governor who has run a State but that is still not POTUS) and some people are mad because he hasn't proclaimed a church home yet (but I bet he will) and those that are mad because he will not produce a birth certificate (this bothers me too but remember, the American people voted him in and they can vote him out if that question does not get answered) and some people are mad because they are mad at everything (with the possible exception of the Lord himself, there are some people who cannot be happy).

As I have said before, I did not vote for Obama but now he is my President and I will pray for him and his family and for all our elected officials most of whom are so superficial we do not know what they stand for. But, the President can count on my prayers. I personally believe that you cannot tax and spend our way out of this economic crises. I guess we are about to find out. I will continue to pray.

From here on, I am going to try to stay on theme and relate things relative to family owned and small business matters. I am going to delete previous blogs in a few weeks that do not relate to that subject.

What do you think?

Wednesday, January 7, 2009

Happy New Year I guess

HAPPY NEW YEAR. 2009 looks like it will be a mixed bag. But, I think that it will be great for all of us. Now I guess that depends on your definition of "great". Here is what I think is "great":
1. We are still alive!
2. We live in a great country. It may not be getting greater but it is truly a great country.
3. My wife is great. She is the best and I am the most blessed man on earth to have her for my wife for 42 years. She has always been the best wife and mother ever she is now the best Grandma ever.
4. My state (Oklahoma) is great. Although with the price of oil lowering the economy is beginning to impact Oklahoma, we do not have the economic terribleness being experienced almost everywhere. On top of that, we were not caught up terribly in the "sub prime" and housing debacle. Our prices have remained very stable and you can still buy a great house in Oklahoma for far less than the national average.
5. My city is great. We are regularly considered one of the safest cities in the U.S. and one the "best" cities in the U.S. Our city even gives us a years supply of trash bags to use for the garbage collectors.
6. My sons and their wives are great. I am 63 years old and pretty much retired. Both my boys treat me great and with respect. I do not always see that in the grown children of older parents. 7. My daughters-in-law are great. One is a stay-at-home Mom and the other a 5th grade teacher. Both seem to love their husbands and their kids. Both girls came from different backgrounds but both came from small towns and both are Christians as are my sons.
8. My grandkids are great. I have 4. They are all smart, creative, articulate and they like school. All attend Sunday School and church and two of them have accepted Jesus Christ as their personal savior. Hayley, 7, will be baptized this week. We get to see them all often. PTL.

So this will be a great year because I am surrounded by greatness not the least of which is the Holy Spirit of God and the salvation of His Son, Jesus Christ.

What do you think?