In this issue
CEOs of private, family-owned companies tend to be circumspect about the information they disclose to outsiders. Their family's business, they reason, is nobody else's business. Many family business owners decline to divulge their annual revenues—and some won't even offer a vague description like "low to mid-seven figures." Indeed, some family CEOs make it a habit never to give a truthful answer to the question, "How's business?"—that is, unless business happens to be very, very good.
I am hoping you might be able to share some advice with me. I have searched all over the web for an answer to my dilemma, but have not yet been successful in finding it.
From its founding in 2000 until 2004, Texas Air Composites, a company that repairs aircraft parts, had routinely spent as much as $15,000 per month on drill bits, sanding discs and other supplies. Such costs were inevitable, thought company president Randy Haran, who runs the Cedar Hill, Texas, business along with his father, John, and his brother, Michael. But last year, an employee suggested that the monthly tab could be sliced in half. “He sat down with the mechanics,” recalls Randy Haran, 40. “They figured out how people could share supplies and keep less inventory on hand.”
As a family business owner, you're usually pressed for time. More often than not, the problems stem from the very reason you decided to set up the business in the first place—to work with your family.