ere’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is quali

I spend a lot of time consulting with family members in family-owned businesses. I grew up in a family business so much of my experience is firsthand. My father was the youngest son among eight children and became the managing partner of a business his father and two uncles founded in 1894.

Just as there are unique problems in publicly-held firms, there are challenges that are just as unique in family-owned and operated businesses. All companies have strengths, but the secret to both profitability and perpetuation is a willingness to step up to the plate and deal with each business and family issue in a professional manner.

In writing this article, I’m drawing on my experiences as a consultant to family-owned businesses as well as information I have been taught in family business seminars and workshops that I’ve attended over the years. My purpose is two fold: The first is to bring these "deadly sins" to the attention of family members who have perhaps not yet been exposed to them, and secondly, to offer recommended solutions. No matter how bad business problems sometimes seem, it’s rarely too late for a full recovery.

Deadly Sin #1: "Daddy" Dominance – In most family businesses, there’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is qualif

s there are unique problems in publicly-held firms, there are challenges that are just as unique in family-owned and operated businesses. All companies have strengths, but the secret to both profitability and perpetuation is a willingness to step up to the plate and deal with each business and family issue in a professional manner.

In writing this article, I’m drawing on my experiences as a consultant to family-owned businesses as well as information I have been taught in family business seminars and workshops that I’ve attended over the years. My purpose is two fold: The first is to bring these "deadly sins" to the attention of family members who have perhaps not yet been exposed to them, and secondly, to offer recommended solutions. No matter how bad business problems sometimes seem, it’s rarely too late for a full recovery.

Deadly Sin #1: "Daddy" Dominance – In most family businesses, there’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is quali

e in a professional manner.

In writing this article, I’m drawing on my experiences as a consultant to family-owned businesses as well as information I have been taught in family business seminars and workshops that I’ve attended over the years. My purpose is two fold: The first is to bring these "deadly sins" to the attention of family members who have perhaps not yet been exposed to them, and secondly, to offer recommended solutions. No matter how bad business problems sometimes seem, it’s rarely too late for a full recovery.

Deadly Sin #1: "Daddy" Dominance – In most family businesses, there’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is quali

deadly sins" to the attention of family members who have perhaps not yet been exposed to them, and secondly, to offer recommended solutions. No matter how bad business problems sometimes seem, it’s rarely too late for a full recovery.

Deadly Sin #1: "Daddy" Dominance – In most family businesses, there’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is quali

ere’s a "daddy" who is actively involved. Sometimes he’s first generation, but he could also be second, third, and sometimes forth. "Daddy" is often highly reluctant to let go of the reins.

The "boys" or the "kids" are all too frequently little more than "hired hands" because only "daddy" is qualified to make the important decisions. And although some of these "kids" are well into their forties and fifties, to "daddy" they are and will perhaps always be "kids".

Solution: The father — the patriarch of the family — can never be assured that either the business will survive him or his offspring will survive him in management unless he systematically gives up his "important" jobs and delegates them to a qualified subordinate.

Granted, "daddy" may perform these duties better than anyone else, but no one will ever approach his level of expertise unless he gives them a chance. And to do that, he must allow someone else to now and then make a mistake or two. He must be willing to make the transition from player to coach.

It doesn’t really matter where he begins in this process, but the point is that he must begin to delegate key projects or duties. It can be preparing the company’s annual budget or profit plan, making credit decisions, assuming responsibility for banking relations, participating in purchasing decisions, pricing, hiring or managing sales. But well before "daddy" plans to retire, a competent successor must have proven that he or she can perform each of these functions.<