Final Point

What keeps U.S. business owners up at night?

By Barbara Spector We asked participants in our Family Business Survey—an anonymous online poll conducted in July and August 2011—to list the family and business issues that keep them up at night. Here are some of the responses: Family concerns • “Is it the business that keeps the family together or the family that keeps the business together?” • “Increased numbers of family members in coming generations.” • Appropriate distribution of family assets between those in the business and those outside the business.” • “Strained relationships with family members not in business because of jealousy.” • “Are the successors really going to manage the company properly?” • “Can they all get along when I am gone?” • “A divorce of a family business member.” • “Next generation has had it too easy, but not their fault.” • “Effects of alcohol on the happiness of family members.” • “Wondering if the cousins can work together in the family business. What next?” • “The challenge of passing on the wealth creating tools that my Dad showed me to my children before I die.” • “Non-active family members wanting to sell shares.” • “What to do with myself if I step down.” • “What will be the best succession plan if none of the third generation becomes involved in the business?” • “Founder not willing to name a successor because he may hurt children’s feelings.”

• “What company debt load will be to buy out retiring family.” • “Lack of a shareholder agreement —no easy way to deal with issues or have someone exit.” • “Migration of key older leaders out of the business.” • “Underlying issues between members that aren’t discussed.” • “Fairness—all siblings paid the same.” • “How can I create a sense of urgency with family about strategic growth?” • “Keeping family satisfied with cash generated from business.” • “What can be done to instill the vision to create and perpetuate a legacy family in the current family members?” • “Lack of adequate estate planning to address value growth in business.” • “Making business decisions like a family instead of like a business.” Business concerns • “Trying to make decisions with my head instead of my heart.” • “Meeting current obligations in this economy.” • “Losing the company culture under professional management.” • “Increasing cost of complexity as work scope expands.” • “Strategic direction that will satisfy elder generation’s dividend needs and allow company to grow for future generation’s wealth.” • “Excessive rules & taxes.” • “Dysfunctional and divisive -government.” • “Impact of failed U.S. financial policy on private business.” • “Timeline for succession.” • “Borrowed money.” • “Should we bring in private equity for growth capital?” • “Consolidation in the industry.” • “Unwillingness to listen, learn and be open to new ideas and suggestions on how to improve.” • “Minority investors.” • “Possible need for job reductions and its negative impact on morale and performance.” • “Cost to manufacture in the U.S. and availability of technical, qualified workforce.” • “How do I get money out of company? Asset rich/cash poor.” • “Repurposing our company for future needs.” • “Soft board of directors.” • “My senior team is getting a little old.” • “Lack of agreement from second generation as to the direction the founder wants the business to take.” • “We are not unionized in a unionized industry. We work hard to educate our employees as to why we are beating the competition and why we should remain non-union.” Other comments • “Objective counsel is the key to success and to be willing to objectively listen to it. Especially when it is about oneself. That can be hard to swallow.”