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 | kthompson
Join Date: Oct 2005 Posts: 5275 South Carolina 
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2006-06-12 130773
I wish to share a thought with those of you either in business, going into business or who work for a business.
If your business is on a stock market this may not apply to you, but other wise it may more than you realize.
Many businesses depend on certain key owners or employees, who without them the business will suffer if not die. Yet they do not take action to continue the business when that happens. We all will die.
The other thing is they do not consider what will happen if that person decided they wanted out. What happens to the business. Does that person have to sell their part and if they do at what price and who can they sell to.
In my business that is something I listen and look for. Sadly it caught me off guard a few years ago.
If you have any part of ownership in a business and you don't know what would happen if you or another owner decided to open a competing business, to just stop working, became disabled or was to die...let this be your warning. Take care of it.
Never thought my sibling would cause a business to split but they did. If you can not make those decision while all is going well, it will be court and lawyers at best down the road.
If you think a marriage divorce is bad and it is, a business can be worse due to how many families can be destroyed.
Now, those of you who work for a family owned business, you might do well to ask them what happends when one of them wants out or dies. If they will not tell you, be sure you have your plans on what to do when it hits.
GB
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 | earthwrks
Join Date: Dec 2003 Posts: 3853 Home Office in Flat Rock, Michigan
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2006-06-12 130777
You sound like you are of heavy heart. Share with us; we're friends here. ....
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 | oneace
Join Date: Mar 2004 Posts: 1490 south central pa 
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2006-06-12 130784
That has happened to my father. He and a a very good friend started a contracting venture. Was good for a couple years then one morning my father went to the shop and it was empty. I mean there was not even a scrap of wood or a tool left in the place. about $300,000 GONE He then went to his "friends " house and guess what. It was also empty. 15 years later and still nobody cops lawyers no one. know where that som bitch is. ....
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 | kwschumm
Join Date: Feb 2003 Posts: 5764 NW Oregon
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2006-06-12 130788
I was the 'key man' that left and put the nail in the coffin of one business. I didn't feel good about it but a guy has to be paid with something besides rubber checks. ....
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| earthwrks
Join Date: Dec 2003 Posts: 3853 Home Office in Flat Rock, Michigan
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2006-06-12 130790
KW: Sounds like the co's fate was sealed before you left. Are they still around?
When I lost my partnership with another corporation, they called me in the office and told me I was, "sinking fast without a life preserver". Well isn't that nice. It took me 5 years by myself to get it to the point I was making a little money and when I joined forces with the partnership I lost eveythoing in 6 months. ....
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| kwschumm
Join Date: Feb 2003 Posts: 5764 NW Oregon
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2006-06-12 130791
Earthwrks, nope they're not around anymore. We designed and built a nice digital building automation system for which I wrote most of the software. We had about 40 installations that generated recurring revenue and new business lined up for several years, but the owner wanted to branch into analog controls (Variable air volume systems). He took a job automating a new 14 story building with an analog product that didn't exist then spent all his money trying to cobble something together. Some guys just don't know when they have it good.
Sorry to hear about your business going south. Business can be brutal. I'm now a one man shop and intend to stay that way. ....
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 | JasonR
Join Date: Jan 2006 Posts: 142 Northern Indiana 
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2006-06-12 130792
kthompson... You are quite correct. Been there and done that.
While I didn't loose everything, I was forced to leave a 6 figure sum of money on the table when I parted ways from a corp. I was 33% owner of years ago.
What's so difficult, is you go into business with people you trust, plus everyone's thinking about the potential success - rarely any failures - or - resulting greed from success. Hence, the last thing on the to do list is a proper exit strategy/plan.
Jason ....
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| earthwrks
Join Date: Dec 2003 Posts: 3853 Home Office in Flat Rock, Michigan
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2006-06-13 130796
KW: The plastics biz, that was 20 years ago. But the business I have now, contracting, though I haven't lost it (yet) literally did go South (to the Gulf Coast) for Katrina. ....
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| kthompson
Join Date: Oct 2005 Posts: 5275 South Carolina
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2006-06-13 130797
earthwrks,
Yep a heavy heart. A business that belongs to some very good people looks like it may go bust soon. So dumb, seems each really thinks a lot of the others.
As a friend I have talked with some. It makes no sense as what one or more owners wants will kill the whole business. Remember the story of the goose that laid the golden egg?
Before you go into any business organization be sure you know how you will get out and be sure you can at least live with it or without it. Ownership fighting and such kills some very good companies.
GD, Gb ....
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| kthompson
Join Date: Oct 2005 Posts: 5275 South Carolina
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2006-06-13 130803
oneance,
Has your father tried an internet search? I am not throwing off on the police, but my limited experience with theft it is not likely to be solved unless happen so.
Guys, a proper plan is also important when nothing goes wrong, as Jason said, greed often hits the successful business. People don't change with money, it just allows the true perosn to show.
Ken, say a local business finally close it doors the same as the one you said your were the key person who left. Their key person left for same reason, rubber checks or no checks. Turned out the business was paying for family members total expenses am claiming they were business expenses. Family was drawing NO income but living very well untill IRS questioned it. Doors closed.
....
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 | Iowafun
Join Date: Jul 2004 Posts: 955 Central Iowa 
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2006-06-13 130810
You do see it way to often. The guys that bought the business my grandpa and his brother built up basically stole it into the ground. They were doing the games before they bought it which lowered the sale value. That way they could buy it cheaper. But they didn't stop their theiving ways and ran it into the ground.
One took the fall and did or is doing time under house arrest.
You do have to be acreful and make sure everyone stays on the up and up. It's also good to make sure everyone knows each other's expectations and aspirations. Then don't go diving in over your head. ....
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 | DenisS
Join Date: May 2006 Posts: 367 NJ
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2006-06-13 130814
You gotta eat a pound of salt together before you know who the other person is. When a man proves himself in hardship, you know he's good enough to be a partner in business. Otherwise you have problems like you folk describe. ....
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 | Murf
Join Date: Dec 1999 Posts: 7249 Toronto Area, Ontario, Canada
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2006-06-14 130839
In my case I nearly found out the hard way.
I was extremely lucky that I had a good, caring and HONEST staff who jumped in without so much as being asked and took the reins. In fact they were so determined to make a go of it on their own, after a little 'pep talk' by my right-hand man, they actually managed to grow the business in my absense!!
I gave the employees (proportionately based on their salary level) ALL the 'extra' profits they made in my absence, plus 25% of the rest of the profits and have since sold the employees 49% of the business and it is still doing better each year.
There is now a plan (and insurance) should anything happen to myself or any key employee of each of my businesses.
Now all I have to worry about is my wife finding out I'm worth more dead!!! LOL.
Best of luck. ....
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| kthompson
Join Date: Oct 2005 Posts: 5275 South Carolina
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2006-06-14 130849
Murf,
Now all I have to worry about is my wife finding out I'm worth more dead!!! LOL.
Use a life insurance policy with an increasing death benefit and that helps as you are worth more dead, later.
LOL
Congratulations on good employees and you had them because the same attitude that attrached them rewarded them. The case that cased this thread is missing that attitude.
Some people would do well to read the story of the Goose that Laid the Golden Egg. Think I have already said that.
God Bless ....
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