Rhode Island General Store Closes After 224 Years of Business!

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Gray's General Store in Adamsville Village, RI, brought in customers for years with its old-fashioned marble soda fountain, cigar and tobacco cases, and Rhode Island Johnny cakes. Having opened their doors in 1788, this Rhode Island landmark may be the oldest general store in America, and one of the oldest family businesses. Gray’s shop closed last Sunday afternoon after 224 years of business! 

Owner Jonah Waite inherited the shop last month after his father suffered an untimely death due to cancer.  He said Saturday that this was a very hard decision to make, to leave behind all the family history and tradition and close the shop. A few deciding factors that led Waite to his decision were the unstable finances and the newer supermarket down the street which has siphoned away business. 

Waite is only 21 years old, and will be a senior at the University of Hartford in Connecticut in the fall with hopes to pursue a career in sports journalism.  "Obviously, I understand the historical aspect of it, and I would really love to keep it the way it is, but it doesn't seem to me that that's the most feasible option," Waite said. "With the economy ... the place has lost its attraction, lost its luster."  Waite says he is not sure whether he will keep the property or try to sell it.

The shop has been in Waite’s family since 1879, for seven generations and comprises the front part of his home.  He said his father, who died at age 59, loved selling cigars and candy to his costumers.  His grandfather owned the store in the early 1900’s and ran a gristmill to make his own corn meal that was sold in the store.  In 2007, U.S. Sen. Jack Reed and then-Gov. Donald Carcieri issued proclamations naming Gray's as the oldest continuously run general store in the country. More customers have been gathering at the store lately to say their last goodbyes. Waite said that although the shop has been in his family for such a long time he thinks his father would support his decision to sell. "He's trusting that I'll do the right thing and what's best for me," Waite said. All good things must come to an end, and after 224 years this historic shop will as well.

Do you have a family business that has been passed down through multiple generations? Share your stories with us on the Continuity Family Business Consulting Facebook page, linked HERE. 

New York Family Businesses Moving in New Directions!

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In 1975, long before the Upper West Side became one of the city’s most desirable neighborhoods, Joe Goldberg inherited a shoe retail business from his father Harry. 

It was then called Florsheim Shoes, but over time it became a New York City fixture: Harry’s Shoes.  This past March, Joe passed away at the age of 83, but not before he helped his son Robert and daughter Randi open a newly expanded Harry’s Shoes, which will be more than double the size of the existing store. 

This is a great accomplishment for the Goldberg family considering only about one-third of family businesses make it to the second generation, and about half of those make it to the third.  Harry’s shoes is not only beating the odds but expanding and moving in new directions. 

What’s the secret to their success? - Common goals, strong family ties, and a willingness to listen to a new generation.  "You can't stand still," Robert Goldberg said. "The secret to business is constantly reinventing who you are." 

The ability to change with the times and communicate amongst all generations allows family businesses to be successful.

For more information, please visit ContinuityFBC.com. 

FAMILY FUEDS: Seven Simple Tips To Prevent Family Feuds From Killing Your Family Business

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Family feuds- whether they start in the family and spill into the business or vice versa, they are a major factor in the poor survival rate of these businesses. 

Studies indicate that only about 30% of family businesses successfully transition into the second generation.  "One of the misconceptions many people have is that a successful family business equates to having a common ‘view’ amongst family members of how things are done and when," says Don Schwerzler, a top family business expert.  "It has been our experience that just the opposite is true. In successful family businesses, there is a surprising amount of disagreement or lack of consensus when new ideas or issues are first being debated and discussed."

The day to day dialog within family businesses needs to create a “positive tension,” as opposed to a dysfunctional family business where the tension created by the dialog is destructive and leads to the deterioration of family relationships, creating family business conflict.

Bob and Susan are owners of a second-generation family business. Doing $8M in sales, they have three adult children who work in the business. The family has a formal business meeting every month. Progress Reports are made on "action items" from previous meetings and new ideas and issues are discussed and debated. Sometimes a decision is forthcoming - sometimes the topic is tabled for additional research and further discussion. This family business is a great example of a family working well together and strengthening family relationships.

But it wasn't always like that. At one time, Bob and Susan hated to have family meetings because they rarely did anything positive. It generally turned into family fights where tempers flared and the language used and the insults made would create havoc within the family business. The parents were fearful that the family was unable to work together and that the family meetings would damage the family relationships beyond repair. Before seeking help, Bob explained they planned to put the business on the block and fire sale it - sell it for whatever they could get - if mediating didn’t work because they just couldn’t take the fighting anymore.

Having a facilitator come in during the family meetings helped break destructive habits. Each member of the family agreed to the help - and each agreed to work hard at changing the status quo. They understood that the family business conflicts were hurting the growth of the business and worsening the family relationships.

One of the most basic yet most important lessons taught during facilitation of a Family Business Meeting or a Family Council Meeting is Respectful Listening and Respectful Questioning. The goal is to enable the family members to become better skilled at active listening, which is the key to communicating effectively with those who disagree.

Here are Seven Simple Tips on being a better "active listener," courtesy of FFI.org.

1. Make time to understand the points of view of others - the payoff can be huge.
2. Understand we make a difference one conversation at a time - don't try to out shout everyone else.
3. Seek more information and insights from those with whom you disagree - ask for amplification and examples that will enable you to better understand other points of view.
4. While disagreements on issues may be strong, don't forget the family's values are a shared bond and represent a shared commitment to the common good.
5. Create "rules of behavior" for the family meetings and abide by them - being family does not excuse boorish behavior or a lack of business etiquette.
6. Do not ridicule or be sarcastic to other family members - know and understand that being in a family business does not result in solidarity of opinion.
7. Establish time limits on discussions or debates - when that time limit is reached but closure is not attained, table the topic for further research and put it on the agenda for discussion at a future meeting.

As one expert put it, "I know we don't have to agree with each other to think well together".

Family feuds are a waste of time and money. Do you find your family business constantly arguing? Does your business have difficulty moving forward because family members disagree? Let Continuity Family Business Consulting step in and help. For more information on family business facilitation, visitContinuityFBC.com or our Facebook page, linked HERE!

5 Tips to Running a Successful Family Business

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Is working with family members a dream come true - or a complete nightmare?  This all depends on how the business is run and how well the relationships are maintained within it. 

There are plenty of stories to defend both sides of this argument; some leading to legal action and deterioration of family ties while others achieve great success working with family and pass on the business through multiple generations.

The term “family business” contains a widespread group of different businesses, from multi-national chains to local corner store shops and a wide range in between. The key to a successfully run family business lies in a few core responsibilities that are universal, regardless the size of the company and the family members that comprise it.

In most ways, working effectively with members of your family isn’t much different from working with any other business partners. Being brothers, cousins, sisters, father-son/mother-daughter, etc. isn’t enough to make a business partnership work. It takes an approach that encompasses some principles, which can be found below, courtesy of CNBC.com.

1. Communication is everything. Communication is the key to good relationships of any kind. With family though, it can take a little more effort, as there are often dynamics at play that make communication more complicated. We can have a tendency to feel like a loved one knows us so well that we shouldn’t have to voice our feelings or expectations. But if you want your partnership to work, it’s important to let go of these assumptions and communicate clearly and openly, just as you would with a non-family business partner.

2. Expectations need to gel. To a large extent, this point goes back to communication. Specifically, it is vital that each partner’s expectations regarding their role and those of the other partners are communicated clearly. Again, assumptions are a killer. Lay out what each of your roles will be in the business before starting. Voice what you expect from your partner(s), and put it in writing to solidify it.

3. A formalized business relationship is best. However strong your relationship is now, you’re bound to have disagreements with any business partner. Drawing up a written agreement for your partnership (and including the expectations from #2 above) is a must. Some entrepreneurs are reluctant to take this step, as it may seem as though a written agreement demonstrates a lack of trust. On the contrary, a written agreement for a business partnership is simply good business and is designed to protect all involved parties. The bottom line is that you’re much more likely to be sorry you didn’t create an agreement than that you did.

4. Priorities are important. We all want to be successful entrepreneurs and make a lot of money, or change the world. But it’s important to prioritize your family relationships over business. It’s heartbreaking to hear of families that have been ripped apart by financial or business disputes. At the end of the day, you can build another business or make more money, but you’ve only got one family for life. Remembering that can help put disagreements into perspective and avoid the nasty fallout of a family business gone badly.

5. All-business is no fun. Although you might have a lot of fun working your business with family members, it’s important to set aside “family-only” time too. If all you ever talk about is the business, not only will your relationship eventually suffer, but you’ll drive the other members of your family crazy! Take time out from business to do the things you would do together if you weren’t business partners. Try going out to lunch or for a round of golf without talking about business at all. If you do what it takes to maintain a strong family bond, it will only serve to support your working relationship.

Is working within your family business a dream come true, or complete nightmare? Let us know on the Continuity Family Business Consulting Facebook Wall, linked HERE. 

For more information on Continuity FamilyBusiness Consulting, visit our website: ContinuityFBC.com.

When Working In a Family Business, Having to Prove You Deserve to be There is a Job in Itself!

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There are hardening pressures when working in a family business, having to prove you deserve to be there, not entitled to the position because your father owns the company.

Eliza Browning is the VP of Crane Digital, where she oversees the company’s online business and digital strategy. Before joining Crane Digital, Eliza worked in digital media for news organizations including CNN, ABC News and the AP, never imagining she’d end up at her family’s business.

Crane & Co., was founded in 1801 in Dalton, Massachusetts. It’s one of the oldest family companies in the country, with ownership recently split between family and private equity shareholders. Eliza never thought she’d work there, but when she decided to make a career move, she needed to prove herself.

“When I came back to the company that’s been part of my family for more than two centuries, to open a New York office and lead Crane’s digital business – I wanted to prove myself,” says Eliza in an article for INC.com. “I pushed myself harder to show that I could lead the division in a new direction – not because of who I was, but because of my skills and experience. I wanted people to see me not as a Crane, but as another employee.”

To be accepted and most importantly respected by her colleagues, Eliza needed to be more capable than non-family members, which meant putting in longer hours with frequent weekends in the office. “They weren’t required by my managers or peers, but I required it of myself,” says Eliza.

About a year into her time at Crane & Co., a fellow co-worker called Eliza “stunned and embarrassed” to say she had just found out she was a Crane family member. “I laughed and told her it was the best compliment I’d been given since joining the company” says Eliza.

How was your transition into the family business? Did you feel the pressures Eliza did? Share your experiences with us on the Continuity Family Business Consulting Facebook Wall, linked HERE.

Developing Next-Generation Leaders

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One of the most common mistakes advisors makes when preparing families for business succession planning is they often narrow their focus to the single individual that they deem most capable of running the business upon a CEO’s retirement.  To truly make sure that families retain their core values while maintaining strong corporate governance and sound strategic planning, advisors should consider all next-generational family members and groom them to fit individual unique leadership roles. At Continuity Family Business Consulting, we focus on all members of the business. 

Many Next Generation (NextGen) family members are ill-prepared to take on the responsibilities of leadership roles in their respective businesses.  This can easily be avoided if the NowGen helps the NextGen family members develop a trifecta of core traits that are essential to running a business, which are self-confidence, an internal definition of success and people skills.

Below is how each of the trifecta of core traits is defined in the blog article Developing Next-Generation Leaders on FFI.org. 

Self-Confidence is achieved when someone deeply understands who he or she is and where his or her strengths lie – knowledge essential to navigating the challenges life presents.  Unfortunately self-confidence cannot be taught in a short period of time it is developed over years, from personal conquests and sometimes yielding to life’s obstacles.  Far too often, however, NextGen members lack self-confidence due to the fact that they’ve been sheltered by the life style that allowed them to enjoy wealth and a security blanket of their parents, and most times both.  It’s never too late to change, through 360 evaluations mentoring and peer-to-peer counseling, NextGen family members can restructure their perception of their strengths and weaknesses and learn how they can achieve overall improvement.

Many children are not given much of a choice or are pressured into following in the family business and do not have a chance to accurately express themselves and pursue their passions.  This can be very subtle for example including work in their day to day conversations perhaps around the dinner table every night.  Children are asked less often how their day went leading them to believe that they can only win their parents recognition by expressing interest in the family business.  When this child matures and eventually enters the work environment in the family business they experience feelings of entrapment.   As advisors, we must help NextGen family members establish their own definitions of success by expressing interest both inside and outside the family business.

Successors are often ill-prepared to manage the complex inter-personal relationship dynamics intrinsic to the family business environment.  A well rounded set of skills is essential to running a successful business.  For example one with outstanding technical skills may flounder when it comes to resolving conflicts of understanding workplace behavior, people skills are essential to running the family business at an optimal level.  As advisors we must also help NextGen family members round out their social skill sets by furnishing them with tool chests of communication and conflict management strategies, while giving them a forum with which to practice these skills before they officially assume leadership positions.

Family members must generously invest in the next generation with time, money, energy and wisdom from their own lives if they expect successors to advance a legacy of integrity and value.  Continuity Family Business Consulting can help both the NowGen and the NextGen prepare for the next steps within the family business structure. For more information, visit ContinuityFBC.com or call us at 877-925-5149.

Managing Change and Transition Within A Family Business

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Change, and the need for change, is constant.  Sometimes change is predictable and sometimes it happens when least expected.  

Family businesses present unique structural and emotional obstacles to change.  Helping stakeholders expand beyond their comfort zone and find new ways to both contribute to, and benefit from, the family business are often crucial elements of Continuity’s work. 

Our specialists conduct training programs and provide presentations for family business executives, attorneys, mediators, financial advisers, psychologists and for professional societies. Programs can range from one hour in length to a fully day, and are always tailored to the needs of the audience/client, and cover multiple topics within family business, including managing change and transition. 

For more information on our training programs and consulting services, please visit ContinuityFBC.com, or call us at 1-877-925-5149.

The Overlap of the Family and the Business and Its Effect on the Entire Family Business System...

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As family businesses develop the next generation of leadership, they must recognize the overlap of the family and the business and its effect on the entire family business system. Although this effect may become more visible overtime, it begins when children are young and parents are trying to find an appropriate work/life balance. Being mindful of parenting styles and how they affect future family business leaders is important. 

“Parenting affects the future of family businesses as it teaches the capacity to communicate, to think outside one’s own interest, to make decisions, to seek consensus and to want fairness and justice for others,” (timesofmalta.com). 

The close emotional bond between parents and children seems to be responsible for the way they apply leadership roles according to attachment theorists. Children apply previous patterns of interaction within their own family to subsequent leadership roles. 

It is thought that consistent parenting during childhood is associated with secure adults with high self-esteem. Inconsistent parenting, on the other hand, is thought to engender adults with low self-esteem who have less confidence in their performance. 

Family business owners are faced with “ultimate challenge” of building their company while simultaneously raising their children, who ultimately may lead their company. It is a juggling act that takes a sense of purpose, balance and some luck to keep all the balls in the air. 

Is your family business worried about parenting the next generation leaders in your family business? Let us know on the Continuity Family Business Consulting Facebook Wall, linked HERE.