Many business owners I speak to dream early on of passing the business to their children.
Even if their children are not even born yet, they think about and often plan for the hope that is to come. After all, part of owning a family business is the desire to pass it to the next generation—the legacy.
So what gets in the way, assuming the owners have children, of the children coming into the business? Interest in the business or lack thereof is the common theme. Family dynamics are often cited as a secondary cause.
But when you break down that dynamic, another common theme is politics.
At a time when our nation—maybe the whole world—seems to be in political upheaval, what with the Arab Spring, the wars in Syria and Libya, the refugee crisis, etc., the world appears to be at a precipice. And family businesses, too, can be at a crucial stage when the politics in the family are allowed to divide rather than be a point of discussion.
A reporter recently exclaimed that she had never seen the vitriol in past elections that we are seeing today, and not just in the presidential race. Perhaps the issue is that election reporting has never been like it is today, with comments being reported asynchronously. But what if the venom spills over into family? And what if that family owns a business? And if it does, what can be done?
For parents, there is a natural tendency to think you are right—right in business, right in morals, right in everything. Since this is a political piece, perhaps the word “correct” should be inserted for “right” so as not to bias the writing.
As the child matures, there is point where you begin to look to that spawn of yours as your equal—your friend. If that does not happen, if the parent-child roles are maintained, a disagreement over politics will divide the family. The owner must also remember that it is natural for the child to protest and want to go in a different direction than the parent. Remember when you were that age? And part of the role of the parent in our culture is to let that child become independent, part of which is financial and part of which is philosophical.
So how do you bridge the great chasm known as the political divide? It starts with looking for commonalities rather than things we can’t agree on. Without giving away my political leanings, let me choose a topic: the environment. Does either side really want to breathe in polluted air, drink toxic water or have our natural beauty destroyed? Certainly not. With that as a starting point, work on the things you can agree on. Work to discuss the end game, the preferred status you each wish to achieve, and then work backwards from there. Another topic: religion. This is a tough one because many religions are tied to the belief that they are the one true faith. Going into an argument with the mind made up that your position is right because it is ordained by God is a tough line to draw in the sand. Are any of our opinions that infallible?
The position most take is to not discuss the matter. This is the wrong approach. Education and learning, truly listening to the position of the other, is what breaks down barriers—not silence and obfuscation. If a mother business owner has a strong political stance, does that need to get in the way of a daughter who has a differing opinion? At the core of running a family business is respect for the others in the business. If that core is not there, there is nothing quite like politics to bring that out. If there is respect, at some point there must be an agreement to disagree.
Keeping the conversation civil and refraining from ultimatums is crucial to surviving the political litmus test. Besides, there is nothing like getting into business to help foment the opinions of a person. Especially when he or she starts paying taxes.
-David Borst, Ed.D., is executive director and chief operating officer of the Family Business Legacy Institute, a regional resource hub for family business. He can be reached at davidb@fbli-usa.com.
