Succession planning (insurance, sales, attorney, profit)

[Brentavo7]

I hope maybe someone can give me advice because I am lost at how to handle the suituation I find myself in.

My father is in control of a very succesful 20 year old company. Unfortunately this success has gone to his head and he thinks he is the only one capable of handling things. He refuses to delegate, micromanages, and wears too many hats. Other companies have several salesmen and a manager. He is the only salesman we have as well as manager.

I feel this comapny will work fine until something happens to him. But at that point all bets are off. His only plan for the future is me and my brother will take over. But he makes no plans to make this happen. At twenty years the company should have a management system set up. Not just a dictatorship.

Another major problem I see is that although he runs the company. He is only an equal partner of 4 people. There is no buyout clause. The only insurance policy taken out is on my dad. So it appears to me their heirs will take over. leaving me with more partners to deal with than he currently has.

He seems to be oblivious to any potential problems and mantains the Ive been soing this for 20 years mentality. Without proper planning I see major problems ahead. Unfortunately emotions are clouding my fathers better judgement. Although we are expected to takeover when he steps down, he keeps everything about the company secret. We argue about this constantly.

Most people in both the company and family agree with most of my points. But when I confront him on these they back down. This is understandable but how can I fight this losing battle on my own.

My only options appear to be go along and watch the company become another statistic. Or leave and start a new life virtually ending my relationship with my dad.

Any advice on the situation would be greatly appreciated. Thanks.

[Philip T]

You are correct. This is a trainwreck waitinig to happen.

Nothing bad about your dad, but this reeks of very poor leadership. The first thing a competent leader gets lined up after a successful set-up is his replacement. That is leadership 101. The company may be doinig well not because of the current methods, but rather inspite of them.

My best advice for you is take care of you, first. Can't save or help anyone now or later if you are part of their trainwreck. Learn your own skills, leadership, and all the rest you need totally independent of this organization. What you learn on your own path will be useful when and if you are needed (or even later desire) to return to the mess.

You can drift away gently and kindly -- no arguments or burnt bridges -- but get away.

[coldwine]

Originally Posted by Brentavo7

I hope maybe someone can give me advice because I am lost at how to handle the suituation I find myself in.

My father is in control of a very succesful 20 year old company. Unfortunately this success has gone to his head and he thinks he is the only one capable of handling things. He refuses to delegate, micromanages, and wears too many hats. Other companies have several salesmen and a manager. He is the only salesman we have as well as manager.

I feel this comapny will work fine until something happens to him. But at that point all bets are off. His only plan for the future is me and my brother will take over. But he makes no plans to make this happen. At twenty years the company should have a management system set up. Not just a dictatorship.

Another major problem I see is that although he runs the company. He is only an equal partner of 4 people. There is no buyout clause. The only insurance policy taken out is on my dad. So it appears to me their heirs will take over. leaving me with more partners to deal with than he currently has.

He seems to be oblivious to any potential problems and mantains the Ive been soing this for 20 years mentality. Without proper planning I see major problems ahead. Unfortunately emotions are clouding my fathers better judgement. Although we are expected to takeover when he steps down, he keeps everything about the company secret. We argue about this constantly.

Most people in both the company and family agree with most of my points. But when I confront him on these they back down. This is understandable but how can I fight this losing battle on my own.

My only options appear to be go along and watch the company become another statistic. Or leave and start a new life virtually ending my relationship with my dad.

Any advice on the situation would be greatly appreciated. Thanks.

Go to the American Bar Association. Look them up online. Then say "I live in State X. I need an estate attorney who handles estates of this size. I need a reference so I can find a good attorney I can trust."

That will take care of everything. And then the estate attorney will proceed to take care of even more. This will protect you if your father won't listen.

Other than that, find a good business attorney, or find another job :/

[StealthRabbit]

If... there is any room to talk to this guy... (you need to figure a way to break down some barriers, without causing defensive posture - some clues at end of message)

1) consider a strategic planning business consultant, a few thousand $$ is VERY cheap for seasoned advice, and there are some folks who are very perceptive and purposed in planning (you don't want someone who is NOT... paying them by the hour...).
or...
a) use SCORE for free, or on sliding scale (retired businessmen - volunteer branch / service run by SBA... some of these guys are really good, but mileage may vary)
b) leverage your banker for knowledge and referrals of business planners
c) Business Attorneys can be good, but usually best for executing a solid plan, few have the time and breadth to really draft an optimal plan
d) Consider a local university with an MBA program to come in and do a class project or use the expertise of their staff, including adjuncts. Many private Universities have really capable ex-professionals who have a passion to teach others, (usually profs who have been successful in running startups, and now have enough $$ to teach) and sometimes students are fairly seasoned professionals with wide range of experience and responsibilities.

This guy needs to see the big picture,
1) There are lots of books / case studies on transitions, and most are failures if the founder is clueless (or prideful / micro manager)
2) Does he have any outside interests that you / he can begin diverting attention away from the business, and into his own 'succession' plan? He needs to realize life is much bigger than work, and what he pours into work (even his whole life) will vanish in a flash.
3) Reality Pill - Life is fragile, Handle with care... he too can be gone in an instant, and if he really cares about his customers, employees and family he would be best to swallow the reality pill. - of course you know this, and the chore will be getting him to realize his 'temporary abode'.

so...
1) if there is room to talk, get with it systematically but not forceful
2) if he is more apt to listen to others, by all means do some creative, (but not undermining) collaboration
3) if he won't budge - you have some choices,
a) If he presumably has many years AND you like the business enough to eventually inherit it (with problems...), then go get a job with similar and successful company where you can learn as much as possible. Be cautious not to do this out of spite or competitively, but more as a learning experience.
b) go to a competitor, out of spite (tho you may regret this choice)
c) become a competitor, tho you will likely regret that choice more (and be very tired too...)

just don't wait expecting things to change, nor burn bridges. He obviously takes this very serious, and probably is not too aware of being an 'empire builder'

Give him a wide berth, wish him success, and realize you have some of the genes too (for the good and the bad...)

[Grlnxdor35]

Hi there! I realize you posted this message nearly a year ago but would love to get a chance to chat with you. I am in nearly the same exact position. I have worked for my father for eight years running his largest and most profitable location...he has four locations. He lives in California and I run the Illinois branch. He has refused to make any sort of succession plan and is becoming more and more of a micromanager as the years go by....sometimes spending ten minutes "teaching" me how to do something I have done hundreds of times already. He doesn't even have a will so of course that would mean if something happened all of the entities would go straight into probate effectively killing the businesses in a matter of a few weeks. If you read this message please reply back to me as I would like to find out what has happened to your situation and would like to speak with someone who would totally "get it".

Thanks,
Amy