Pub. 3 2013 Issue 2

21 where family issues and business issues can be discussed in a professional business environment instead of over “Thanksgiving Dinner.” If structured and managed properly, a Board will sig- nif icantly improve communications between all family members. It provides a specific setting where everyone is assembled on a regular basis with a formal agenda to discuss key business and family issues. Another major advantage is that a Board provides the proper business setting for the dealer to train the successor(s). The dealer should use the Board to teach and share their knowledge and experience regarding issues such as: • Acquiring new dealerships and franchises • Handling manufacturers’ requests for facility renovations • Negotiating with lenders for f loor plan and renovation financing • Utilizing reinsurance companies • Acquiring new real estate • Increasing profits in car sales and fixed operations Finally, the Board is designed to address both manage- ment and compensation issues for all family members. Deal- ers need to acknowledge that in some family situations, the best person to run the company may not be a family member. Every dealer knows it takes a special set of skills to success- fully run a dealership. In a matter of months, the wrong individual can destroy profits, blue sky, and morale in the business. An individual needs to have both skill and desire, what I call, “fire in the belly,” to be successful. Sometimes children have neither the skill nor the desire. Although it is a tough decision, the best decision for the business and the family may be outside leadership. What’s wrong with allowing family members to manage the Board and a quali- fied outsider to successfully run the business? It may be better for the business, the family, and the profits! Children can still hold key positions of authority on the Board and will own the company stock. The Family Board allows the benefits of ownership to remain in the family. In summary, creating a Family Board improves the sur- vival rate for a business passing to the next generation. It allows multiple heirs to work in a professional business en- vironment, foster better communications, share ideas, and resolve family and business issues. The manufacturers will accept the Board because it helps minimize family conf lict and promotes strong leadership. Family members can still serve in significant leadership roles with responsibility and accountability shared by all. Consequently, a Family Board helps provide good solutions for the family, the business, and the manufacturers. Q For more information, contact Roy Dixon at Planning Solutions Group, LLC: 888.740.3501 or rdixon@psgplanning.com.