Today, Sara Stern is talking with me today about the family business circle, her experience in family businesses, The Sage Pages, the Matilda Impact, family business statistics and what that means for your business, how ‘fair is not always equal,’ and what successful family businesses have in common.

So many businesses (family-owned or not) hit their ceiling because the owner/founder cannot separate their ownership role from their management role. Because so many owners don’t truly understand business valuations and how to identify what their biggest asset is worth, they try and solve interpersonal problems with what is tangible, and they understand… payroll. Salaries become the default mechanism to “treat everyone fairly” or keep the peace. When in reality this can be one of the most toxic mistakes to make.

I truly believe conflict can disappear once a business owner understands how companies are valued and have boundaries which clearly define value management roles should be bringing along with the correct pay. This DOES NOT mean that hard conversations will disappear, it just means that the chances of growing a valuable business that lasts generations will increase along with family harmony.

 

What will you learn in today’s episode:

Sara’s background and her experience with business

What Sara got from working at Target

The three-circle model of family business are:

Ownership

 Business

 Family

What the Matilda impact is and how to use it to address the family freeloader

Why 90% of first-generation business owners are in all three circles

The excuses first-generation owners

Why fair is not always equal

What the successful family businesses to make it in the 3% of companies that beat the odds and survive three generations

How to shift your mindset and reinvent the family business if you are sick of waking up for grandma’s legacy

How to work through family conflict and lean into

How to break through false assumptions you have about your family and the business

How to create a family purpose statement

How to review, hire and work with a solid team of advisors and deselect the ones that don’t get it

 

Main takeaway:

Education can solve a lot of problems. There are two ways we hope to help you get clear, get intentional and get going:

  1.)    Mastering Your Cash Flow – Video Series

How To Build A 13-Week Cash Flow Statement

Get clarity on where and how your cash is coming from and being used and then build a plan to manage it wisely. Learn how to build a 13-week cash flow statement from the top CFOs in the marketplace.

How to Build And Revise Your 2020/21 Budget And Forecast

2020 and 2021 are most likely not going to look like you thought they did back when you built your budget and forecast. Learn how to model out different scenarios using forecasting best practices.

c. Create A Strategic Plan to Grow Company Value

Increase the chances you come out of the gates and capitalize on the future opportunities when our new "normal" sets in. Start thinking about how you can create a strategic plan to grow a valuable business that gives you choices.

 2.)    Intentional Growth™ Digital Course

Because of the current situation, Pat and I are working on a digital video course on the Intentional Growth™ 5 Principles. It will be the best of our material that we have in our 2-day Boot Camps that normally costs 5k for $295. Text the word