On The Money: Family feud sinks business
Modesto Steam Laundry, a Modesto business that’s more than 100 years old, will be gone by the end of the month because the descendants of the longtime owners had a falling out.
When family members can’t agree on how to run the family business, closure isn’t far behind. It points to the importance of planning early and often to ensure the future of such businesses. Too often, family business owners wait too long to set up a legal and operational framework to keep the business going no matter what happens.There’s always tomorrow, it’s not a problem yet, it won’t happen to us are just some of the reasons successful family business owners don’t plan ahead for the one thing that will kill the business, family infighting.
Family businesses are a big part of the business landscape in the valley, so dealing with these issues is critical if they are to thrive and survive in the years ahead. It’s so important that the Stanislaus Economic Development and Workforce Alliance is hosting forums on family business issues. Experts say most family businesses can continue to operate successfully if they put their affairs in order with the help of a team of professionals -- lawyer, accountant, insurance agent and business adviser.
The key, start this process as soon as possible because it’s time consuming and there’s much to consider. While it might cost time and money to set things up the way business owners want, that investment will pay off with a cohesive plan for the future, one each member of the family can live with. That just might prevent the collapse of a successful business amid loads of dirty laundry. For more of what family businesses can do to plan for the future, see my column this Sunday in Work&Money on Page D-1.
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