Family Businesses – Treasured Heirlooms!
January 13, 2010
In many families there is a giving ritual. Treasured heirlooms are given from one generation to the next. Parents carefully think about what would be treasured by each child, and they are gifted accordingly. What’s often unspoken is that the parents feel the gift will be both treasured and maintained.
Ownership of the family business is often gifted more like an asset than as a treasured heirloom, with less though given to issues of being treasured or maintained. It is seen as an entitlement or an annuity. But ownership in a business is not the same as ownership of a bank account, or uncle Harry’s portrait. A business has a life of its own and has its own identity. Nobody is paying interest on its worth – it needs to be worked, nurtured and allowed to respond to its customers’ wants and needs. If you are offered the gift of ownership in a family business, make sure you are willing to invest in the gift. If not, ask for your inheritable interest to be converted to its cash value and paid.
Don’t Bother with © or ™ Unless You Work It Consistently
January 6, 2010
Copyrights are great. They protect your unique expressions. But once you copyright something, you lock it in stone. The copyright covers that unique expression. Change a few words and it’s a new copyright, perhaps a derivative, but new, nonetheless.
Trademarks and tradedress ( the packaging and design – how the brand is presented – the materials chosen etc.) protect your logos, name, packaging and other unique design expressions. When you claim and/or file for trademark protection, remember, you are locking in the design and it must be used consistently going forward, or you will risk your ability to enforce your rights going forward.
Consistent “presentation” and use (including use by your suppliers) are keys to protecting intellectual property. You can’t protect it if you don’t use it consistently.
Biz Succession: Who’s Stepping Up?
January 6, 2010
Who and what come next are critical to your exit strategies and business succession plans. Sometimes you get to choose both who and what come next. Other times, opportunity knocks. If it does, you need to be open to these possibilities, or you lose.
How can you be open to the unexpected?
- It’s not over ‘til it’s over. Remember, you can be pursuing a course of action, but still make changes – even reverse course – until you reach your final decision point [I was once involved in a deal that was all but done when the owner changed his mind about selling at the closing. “I’m not ready to go,” he said. No Deal Is Done Until the Papers Are Signed, Sealed and Delivered] ;
- Never count anyone out. As you get closer to your decision point people who you may not have considered may unexpectedly step up to be counted. If you are too locked into your initial choices you could miss out on an opportunity you haven’t anticipated [in the sale of one family business, two sons were vying for control. After a series of activities working together planning for succession, the brothers changed their minds, switched positions, and that changed everything];
- Be alert . Nothing happens in a vacuum, the marketplace, the economy constantly change. Circumstances may reveal other possibilities you can take advantage of at the last minute [Last minute changes in a deal make it better for all parties concerned].
