Moores

  Rules  |  Roles  |  Company Future  |  Family Dynamics  |  Estate   [continued from previous Moore Family Articles] The first thing the advisor did with the Moore Family was to find out what’s really going on – from each person’s perspective.  They started with a series of individual interviews with each family member to understand each person’s current position within the Company, their thoughts about their involvement in the Family Business in the future, as well as their personal goals for the future. The family business advisor then met with the family as a whole to review their initial observations and outline key next steps. Key highlights from the initial observations: Family Business Rules & Guidelines There are different views on how the family business and the family ranch should be run. Joan thinks the business and the ranch are separate entities and should be as such. The business should be run like a business with no family perks. George Jr. favors the many advantages the family members enjoy (car, gas, travel, time-off) and feels that is a benefit of ownership. Peter wants to make a business out of the family ranch and wants the family to invest together. Future Roles George Sr. is ready to retire in the next 2-3 years. Meaning he wants out of the day-to-day operations, but would still like to stay active as an advisor to Gen 2 after retirement. It is unclear who will replace George Sr. as the President of Moore Flooring. The Gen 3ers working in the family business are not clear about their future in the family business. Company Future Family members have different views of the future business strategy. George Jr. wants to shrink the product lines and focus on only the highest margin products. Joan wants to diversify to protect the business from a softening economy and cater to a wider clientele base. Peter has suggested sourcing new products and materials from China. Family Dynamics Nancy does not want any conflict. It’s not worth it for the family to fight or bicker. There is an underlying power struggle between George Jr. and Joan since neither person is sure who will take over for George Sr. Peter feels like an outsider sometimes since he doesn’t work in the Family Business. Moore Family Estate The future ownership of the company is unclear. George Sr. and Nancy have a will and estate plan in place, but it was last updated almost 10 years ago. The estate plan currently leaves ownership equally among the ‘kids’ (Gen 2), but George Sr. and Nancy are not sure that is the best plan. Initial next steps: Draft the Moore Family Business Constitution to function as the Family’s guiding principles and rules for running the Family Business. Create the Moore Flooring 5-Year Strategic Plan to define the strategic direction of Moore Flooring. Define and implement the Moore Flooring Succession Plan which will include future role and responsibility clarification for Family members and a path for leadership transition. Update and refine George Sr. and Nancy’s Retirement and Estate Plan.   Next Meeting: Start the family business constitution.   BCR has extensive experience in working with many family-owned businesses in all of our areas of services. If you have any questions or need advice regarding your family-owned business, please give us a call at (808)545-4111. Or reach out via our Contact Us page.   Home | Who We Are | Consulting Services | More Blog Posts | Contact Us

  Learn from the Moore’s as we follow them on their journey of running a family-owned business.   The Moore’s own and operate Moore Flooring and are a typical Hawaii family business.  George Sr. and Nancy (Dad and Mom) started the business 32 years ago.  They have a son and daughter in the business (George Jr. and Joan) and another son (Peter) who’s not in the business. Their grandkids (Kai, Malia, Nina, Paul and Diane) are at the age where some are already working in the business and some are thinking of joining the family business.  George Sr. and Nancy would like to retire within the next few years, however, they have a lot of things on their mind: Which of our children should take over the business? Should we transfer ownership of the business now? Later? Should we gift the business to the ‘kids’ (Gen 2); some of them, all of them? If we gift the business do will we have enough money to live comfortably during retirement? What is George Sr.’s role in the business going to be? Can the ‘kids’ (Gen 2) handle running the business? Maybe we should sell it? The business is doing great now because of the construction boom and good economy, but what happens if the economy takes a turn? Can the ‘kids’ (Gen 2) manage the business to remain profitable and successful? What about the grandkids? Should we decide now if they’ll be owners of the business in the future? What about Sam (our key employee)? Will he leave the business if the ‘kids’ (Gen 2) own it? What about the rest of our estate? Our ranch is constantly losing money.   Month 1 of our 12 month series starts in January 2018.   BCR has extensive experience in working with many family-owned businesses in all of our areas of services. If you have any questions or need advice regarding your family-owned business, please give us a call at (808)545-4111. Or reach out via our Contact Us page.   Home | Who We Are | Consulting Services | More Blog Posts | Contact Us