Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/357935
COMMERCIAL CARRIER JOURNAL | AUGUST 2014 105 but family dynamics will doom the company. Overcoming resentment No matter how skilled and capable your child might be, you can't ignore the fact that others in your company will presume that his pending promotion is due to family privilege, not ability. You will never convince anyone that you chose a family member solely based on performance, but the successor can at least show that he is working for the job. As we have already discussed, it's usually desirable for your succes- sor to work at another company so that he has experience working outside the "old man's shadow." Then, while working for your com- pany, the successor must show that he's capable of working hard and putting in the hours. He should make a point of developing his own relationships with managers and employees in all depart- ments. And as much as possible, family rela- tionships and the company organization chart should be separate. In discussions with employees, Junior should refer to John or Mr. Doe, not Dad. Be clear with employees about the future direction. Once the decision is made that a family member is being groomed to replace you, com- municate that fact to key managers and employees. Don't forget about customers. Let your most important customers know one by one at lunch or some other face- to-face setting. Ask them to keep it confi- dential until the announcement; they will appreciate this gesture of trust. Notify the rest of your customers by personal letter to arrive at the time of or immediately prior to your formal announcement. Don't let them be sur- prised. Handling compensation In a family business, it's not necessary for the would-be successor to sign an employment contract unless other top managers have them. On the other hand, he must have a clear understanding of his role in the company, your expecta- tions of him, when raises and evaluations occur and the strategy of the company. Pay your family successor and any other family members on the same basis as other employees. Salary should be based on responsibility, experience, skills and hours worked. You really shouldn't be distributing your com- pany's profits to family members in the form of salary. Ask other trucking company owners, your CPA or perhaps an outside board for help in establishing a uniform compensation plan. COMMERCIAL CARRIER UNIVERSITY Transition at a family-owned business to another family member raises unique management, legal and fi nancing issues. Sponsored by: Produced by: In cooperation with: Commercial Carrier University is an educational initiative for owners and managers of trucking companies that are held at select Truckload Carriers Association events. We're certain you will find this program a valuable resource in managing your business more easily and more profitably. CCU's goal is to provide you with an in-depth road map for success through clear advice on basic and advanced business practices. CCU Titles Available: &w to Evaluate Life Cycle Costs &w to Manage Cashflow &w To Plan For Succession &w to Use Financial Statements &w To Write A Business Plan Visit www.commercialcarrieruniversity.com for more information. CCU manuals are available on USB drives and can be purchased online through eTruckerStore.com.