Family Businesses

Family Businesses

Action Hero – Erick Slaubaugh

Erick joined his dad’s business when he was 19. He helped build the alarm system business and became CEO. To Erick, starting a business means making sacrifices. You have to sacrifice to put your money and time into making the business successful. You will put in extra hours, even on weekends to grow the business. In addition to sacrifices, starting a business takes courage. Erick believes that anyone can start a business if they really want. Asking questions is a good thing. It is not a sign of weakness, but a sign that you want to learn and improve. Having mentors helps to make sure your thinking is on track. There will be times when you have to make tough decisions. One of those for Erick was when he had to let his dad go from working in the business. Downsizing is difficult as well because it affects the livelihood of other families and individuals. Erick also learned that you should focus your efforts on what you know. He tried to get into a different business market, but realizes that he would have been better off investing in his current business rather than a new and different venture.

Family Business Equity

In the family business, dividing up ownership or equity does a few things. Equity would be what is left after expenses are subtracted from the income. If each family member owns a certain percentage, the business can eventually either be sold or equity can be bought out from another business owner that doesn’t want to continue in the business. Having equity also gives each member responsibility with the debt the business acquires.

Research the Business

It is important to do your due diligence when considering a new business. It should be in an industry you have researched and are familiar with.

Business Plan and Vision

In a family business the successor should have a vision for the company. The vision needs to incorporate potential for expansion, growth and development.

$100 Challenge – The Perfect Cookie

I have learned that “The Perfect Cookie” is not so perfect a business. I burned my arm when making one of the cookies due to the style pan I was using. (It separated causing one part to fall on my arm when removing it from the oven.) I also had to replace my decorating kit and had added costs of cooking parchment paper to more evenly cook the cookies. I started working on the PowerPoint. It is hard convincing investors to invest in a business that I no longer want to invest in.  All my sales are done.