Family Business Radio, hosted by Pat Romboletti and Meredith Moore, had a fascinating discussion on April 1st with Dan Merkel, of Southern States Insurance, Inc., and Josh Hirsh, Managing Director of Studley, about two essential subjects for a family-owned businesses: risk management and property leasing.

Josh shared his take on the economic realities found in today’s commercial real estate, in general and specifically for Atlanta. He pointed out that now is a very good time to be a tenant due to high vacancy rates. As a family-owned business, you should be evaluating your real estate costs—and consider renegotiating any leases. While it isn’t a free-for-all market we’re currently in, you can secure upfront concessions with long-term, flexible leases. He further pointed out that warehouse space isn’t quite as dramatically down as office space (apparently the warehouse developers weren’t as exuberant as the office space developers) and that a lease-to-buy strategy could be a viable option.

From a risk management perspective, Dan discussed the impact of the current economy on insurance. In terms of workers comp, building, equipment and other liabilities, few businesses have the same footprint as they did in, say, 2004 or 2005. With that downsizing, your insurance cost should have notched down, too. Renewal interviews with your trusted advisor would allow you the opportunity to address those changes.

Dan went on to liken reviewing your insurance to doing your taxes: boring, but required. His best advice is to take inventory of your insurance needs once a year, just like you do with your taxes. The risk of doing otherwise is too great. For instance, the two most likely negative events for a business in Atlanta is either a large fire or a tornado. You have to ask yourself—if something like that happens, do I have the coverage to rebuild?  This is exceptionally critical for a family-owned business since virtually all of your wealth is tied up in your business and your real estate.  Simply put, adequate insurance levels protect your family business so that you have a business to pass on to the next generation.

Josh articulated the role of a real estate professional working on your behalf. Real estate brokers can be so much more than the guy who finds space for you. A tenant representative can create a competitive environment that will work in your favor as the tenant-business owner. They can help you understand the different business models of landlords and work with the one most favorable to your cause. They can help you understand the nuances of the lease and can structure it in your best interest.

Insurance and real estate professionals can be important members of the trusted advisor team for family businesses. Josh’s view carries the weight of common sense, “I can move the ball along to a point, but I want to stop where my expertise stops.” From there, he relies on other professionals who can expertly address insurance, tax, and law matters. Dan concurred—“Create a stable of resources,” he said.

Be sure to listen to the full interview available as a download. These two experts will get you excited about the possibilities out there to capitalize on today’s financial climate while reducing risk.

Dan Merkel, Sr. Account Executive, Southern States Insurance, Inc. – Telephone – 678-715-0415- Email: dmerkel@southernstatesinsurance.com

Josh Hirsh, Managing Director, Studley – Telephone – 404-504-0015 – Email: jhirsh@studley.com

When you own a family-business, virtually every financial decision that you make can have a long-term impact on both your business and your family.   On Thursday, April 1st, our guests, Dan Merkel, Founder, Southern State Insurance, Inc. and Josh Hirsh, Managing Director, Studley will share their insights on two key areas that are sometimes over looked—risk management and property leasing.

Without proper risk management—your entire business and all of the wealth that your family has built can disappear with one uninsured loss.  Dan Merkel will help you understand how to develop a comprehensive risk-management strategy that must be part of your overall business and succession planning.

Managing your real estate holdings and negotiating lease terms can be complex.  As a family-business owner you must also consider the impact a long-term commercial lease can have on your successors.  Josh Hirsh will help us navigate the commercial real-estate waters from a family-business perspective and will help us understand the opportunties available during these volatile times.

Our Guests:

Josh Hirsh, Managing Director, Studley

Josh joined Studley in June of 2000. He began his career in commercial real estate as a financial analyst focusing on acquisition and disposition strategies. His expertise includes evaluating the cash, GAAP, and book impact of a variety of real estate lease structures. As a broker, Josh works with both corporate clients and law firms on ensuring that his clients achieve both optimal financial results as well as flexibility to help manage a variety of human resource issues.

Josh is an active member of the American Israel Chamber of Commerce where he advises early-stage Israeli technology companies on various strategies for entering the market. He is an active member of the Northside Youth Organization where he has both coached baseball for the past several years and contributes as an active member on the park’s long-term planning committee. He is also working with Kate’s Club, a local non-profit, on a variety of fundraising and public awareness initiatives.

In 2009, Josh was recognized by the Atlanta Business Chronicle in its annual “40 under 40” list for his contributions and leadership in his company and community.  Josh graduated from Indiana University with a degree in real estate finance and Japanese.       Josh Hirsch, Studley – Telephone – 404-5043-0015

Dan Merkel  CIC, Sr. Account Executive, Southern States Insurance

Dan’s client base consists of but is not limited to manufacturing, distribution, wholesale, construction, real estate, professional, not for profit public and private companies.  His specialties include liability, property, workers compensation, vehicles, equipment, umbrella, professional liability, cargo.

Dan is married and the father of two girls.  He lives in Alpharetta where his is a very active member of his community.  He serves on the board of directors of several organizations and recently graduated from the Alpharetta Public Safety Academy.

After more than 18 years in the property and casualty insurance businesses working with business owners and helping them manage their insurance cost and exposure. Dan has worked with almost every type of business you can imagine. He has an advanced degree from the Society of Certified Insurance Counselors (CIC) which has given him great insight and expanded knowledge of insurance. Dan Merkel, CIC, Southern States Insurance – Telephone – 678-715-0415

Meredith Moore and Pat Romboletti, co- hosts of Family Business Radio, spent an insightful and informative hour on Thursday, March 25th with guests Dean Harbry, with  Internal Innovations and a Professional Certified Coach credentialed through the International Coach Federation with, and Fritz Schlabach, CPA and (non-family) CFO of a family-owned business.

Fritz has been a non-family key executive for more than 20 years in family-owned businesses.  He explained that he grew up Amish and essentially was raised in a close knit family-environment on the family farm.  Listen to the Podcast for more details about his journey from his Amish family to the Marines, a Big 4 accounting firm and then his long career inside family owned-businesses.

Dean kicked off the conversation by explaining that an executive coach serves a specific function very different from a consultant. A coach partners with his client through a process of focusing on what’s inside that person—rather than coming in and telling the client what is wrong and how to fix it.  Similar to the way a professional athlete benefits from a coach, an executive coach “gets you farther faster,” he said.

One way he develops “executive presence” is by cultivating professional management skills. Using the illustration of what an executive does when something goes wrong, he pointed out that a professional manager, as opposed to the amateur manager, will forego finding a culprit in favor of finding solutions to the problem. This shift in attitude creates a safe environment in which employees feel like they can take risks and, just as important, will declare faster that a particular strategy isn’t working.

This point led to Fritz talking about his 20—year career preference for the family-owned business structure, which is an environment that requires him to have a wide bandwidth. He prefers the lack of bureaucracy where decisions can be made and unmade quickly. Additionally, he likes to wear many hats—“no two days are alike.” However, he also acknowledged that in a small company, you may do the mundane.  Light bulbs need to be changed. Toilets need to be cleaned. You have to humble yourself, set aside your issues and feel responsible, he urged.

Both guests gave compelling reasons for an executive to hire an executive coach. From Dean’s viewpoint, he sees that all human organizations—really, anywhere there are two or more people together—are relationship-driven. The resulting dynamics, whether in a family, a family-owned business or the largest corporation, creates tension. A coach will help an executive through that minefield. As for Fritz, he was clear that an executive coach doesn’t come with a magic wand. However, just as he, as an outsider, can provide clarity to the owner-family, a coach can supply him with much needed third-party objectivity.

One case in point: the situation within a family-owned business when the founder is considering bringing in a top-level, non-family executive. Fritz encouraged the founder/owner to get expert advice that will help them see what they are missing, something that requires them to accept that they may not have all the answers. Dean agreed by highlighting that, before taking such a step, the owner needs to do an in-depth evaluation of where the company stands. An honest and forward-thinking evaluation often arrives at the conclusion that they need to bring in someone with a different skill set and personality from the owner.

Please listen to (and download) the full discussion on our Podcast.  It is delightful mix of hard-earned wisdom and fresh perspective, guaranteed to be time well spent.

Dean Harbry, PCC, Executive Coach, Internal Innovations – Telephone: 770-783-2765

Fritz Schlabach, CPA

Many family-owned business executive teams include senior-level professionals who are not family members.  Assimilating into the business and achieving success can be challenging both for the family-business and for the executive.

Our show on Thursday, March 25th will feature two guests who can shed a great deal of light on this topic. We will be welcoming Dean Harby, PCC Executive Advisor & Coach with Internal Innovations, along with Fritz Schlabach, CPA and currently the CFO of a family-owned business.  Dean and Fritz have worked together as coach and client,  and Fritz is a seasoned veteran of the family-owned business having served for 20 years in executive roles as a non-family member.

This hour-long  broadcast will explore the role an executive coach can play in guiding non-family members to success within a family business from Dean’s perspective.  Fritz will share his insights and real-life stories of the benefits of taking on a leadership role in a family-business—along with many insights on the challenges and how to navigate the waters.

You won’t want to miss this lively discussion.  And as always, we promise it will be full of useful information and tips, so be sure to have your notebook handy!

Our Guests:  Dean Harbry, PCC and Fritz Slabach, CPA

Dean Harbry is credentialed as a Professional Certified Coach (PCC) through the International Coach Federation and is best know for his executive coaching competentcies.  Dean brings a long history of visionary leadership and managerial leadership to his coaching practice.  He has worked with individuals from banking, finance, technology, manufacturing, media and sales.  As a trusted advisor, he partners with executives to achieve results.

His own career included significant experience with mergers and acquisitions, including a multi-bank acquisition.  His IT skills were honed when he created national IT infrastructures from scratch in financial services environment.  He has served as President and COO and has consulted with State government, educational institutions, financial professional firms, law firms, the auto industry, medical research, nonprofit institutions, boards of directors and leadership training.

Dean’s personal mission is to create clarity in next steps, promoting forward movement.  Dean holds a BA in Organizational Management and is completing his MA/PhD in “Professional Coaching and Human Development” at International University of Professional Studies.  When not helping his clients create forward momentum, Dean can be found on the running trail training for his next marathon–he has completed 20 to date.

Internal Innovations – Telephone 770-783-2765

Fritz has over twenty years of experience as a senior executive in privately-held companies.  Currently holding a CFO role in a family-owned business, he began his professional career with Arthur Andersen in their auditing and small business development segment.  Upon leaving Andersen in 1990, he gained his CFO and senior executive expertise, including the position of COO for a $20 million direct marketing firm, in various industries ranging from manufacturing to management consulting.

He has extensive experience in all aspects of strategic planning, budgeting, process improvement, and management information systems, including specializing in turnaround situations.  Strong interpersonal and leadership skills have enabled Fritz to quickly gain trust and influence with owners/stakeholders as a key executive management team member in these often less structured and fluid environments.

Growing up Amish and serving in the US Marines are two significant forces in Fritz’s background which acted to forge a strong work ethic, a passion for building cohesive teams, and a commitment to excellence.  After leaving the Marines, Fritz graduated with highest honors from Washington and Lee University, having started college with an 8^th grade education and a GED since the Amish are exempt from compulsory education beyond the 8^th grade.

On on March 11th broadcast, hosts Pat Romboletti and Meredith Moore of Family Business Radio were pleased to welcome the family business owners at Rick Bailey & Company—founder and father Rick Bailey along with his oldest daughter Amanda Bailey Hohenbery.  Based in Woodstock, GA, their insurance agency specializes in individual and group health insurance.

The show opened with Rick and Amanda discussing their early days.  Rick began his insurance agency as a sole proprietor, never really foreseeing that even one of his three daughters would join him in the business—much less all three of them. Amanda admitted to some surprise herself. Upon graduating from college with a psychology degree, she was considering her options when her dad offered her an interim position at the insurance agency—“just until you decide what you want to do.” Daughters Delane and Jennifer also pursued different educational degrees before joining the company.

From the beginning, it was clear that the Bailey family values got translated into business values that then became the bedrock of their successful family-owned business. Rick said that, first and foremost, he always told the girls to “follow your dreams and do what you enjoy doing.”  It just happened to turn out that the daughters loved the business just like their dad!

A big part of the success for this family-business has been their recognition and leveraging of the strengths of multi-generations in a family-business. Each daughter—representing two different generations (Gen X and Y)—brings something unique to the table—Amanda is more marketing driven, Delane likes the finances and Jennifer, the Gen Y representative, is all about technology. Instead of downplaying these attributes, they have leveraged them. “The only way to fail is to not recognize the strength of each player,” said Amanda.  By combining their strengths, they have been able to provide exceptional customer service that is the hallmark of their company.  Their clients now know that the same great service and the values that they were attracted to in the first place while working with Rick all these years will continue on with his daughters—each in their own unique way.

The conversation took a fascinating turn when Rick and Amanda were asked about their various“aha” moments along the way. Rick delved into the process he undertook before deciding to make the three daughters partners in the business. Amanda shared the poignant journey in which she moved from “Dad, what would you like me to do today?” to the stage where she knew what she was doing to now being at the point where she is thinking of new things to do to ensure the long-term viability of the company.

As for integrating the next generation into the business, Rick advised other first-generation business owners to not try to force a round peg into a square hole—to let things happen naturally. If the children love what they’re doing, he said, then the business will work. Amanda chimed in from her perspective with advice for members of the second-generation: take the attitude of “what can I bring to the company?” and “how can I improve the business?” There are no handouts, she said—we have to work.

Rick and Amanda also added to the Family Business Radio tip library with the following:

Tip 1 from Amanda:  Both generations must equally contribute to the business for a long period of time.  The first generation should not abandon the business for the golf course when the children join.  And the children need to show up fully when they join the business and always be looking for ways to contribute.

Tip 2 from Rick:  The relationship between the owner and the children must grow, change and mature.  It must mature to a relationship of equals. He shared one of is favorite quotes: “It is a great moment when the teacher becomes the student and the student becomes the teacher.”  Rick added that they have had many of those moments.

Tip 3 from Amanda:  Be sure to use the strengths of each generation.  Look at what each person can contribute to the business—each one has different “super power” and can use that unique ability to contribute to the business.

For the first time in history, as many as four different generations are working side-by-side in business today.  Mixing multiple generations in any workplace has proven to be challenging.  But all the more so in a family-owned business where you not only have the complexity of different generations, but the added element of family history that can add to the challenge.

Our guests on Thursday, March 18^th have made a great discovery—if you learn how to leverage the strengths of each generation you can greatly enhance your business and ultimately have a great competitive advantage.

When Rick Bailey launched his insurance agency in 1978, he had no idea that one day his three daughters would be a part of his company.  Fast forward and Amanda, Delane and Jennifer have all joined their father in the business and Rick and his clients couldn’t be more pleased.

Rick and Amanda will join us to talk about how this father and daughters have been able to come together to build an exceptional agency that will be able to continue to serve their loyal clients for many years (and more generations) to come.  They will especially focus on how they have come to appreciate, embrace and leverage three different generations.

They will share their perspective about what has made the family-business thrive and provide helpful insights for parents who are considering bringing their children into their business—and children who are considering joining an existing family-business.

We know you will take away some great insights from the lively discussion with this father-daughter team.  Listen in live right here at wwwfamilybusinessradio.businessradiox.com this Thursday, March 18th from 1:00pm-2:00pm. Or, download the Podcast that will be posted the Monday following the live broadcast.

Our Guests:

The Agency:  Rick Bailey & Company is a family-owned insurance agency located in Woodstock, GA of knowledge, experience and world-class customer service.

Is there a way to keep the family business in tact even during a divorce?  Our March 4th broadcast on Family Business Radio, hosted by Meredith Moore and Pat Romboletti, tackled this subject with the help of our experts.  Our guest included Amy Waggoner, Partner with Waggoner Hastings, LLC, Robert Bordett, CFP and SVP of Consolidated Planning Corporation, and Marsha Schechtman, Licensed Clinical Social Worker and divorce coach.

Our panel gave us an insiders’ tour of a relatively new process called collaborative practice, an avenue that can be used in cases of divorce in a family-owned business to ensure that the divorce does not destroy the family business.

The Collaborative Divorce Process is a way of practicing law where the attorneys for both of the parties in a divorce agree to assist them in resolving conflict or legal issues using cooperative strategies rather than adversarial techniques and court proceedings.

Collaborative practice uses specially-trained professionals from several disciplines—such as law, financial planning and social work—to create a team to help arrive at solutions that minimize the destructiveness that a divorce can wreak on individuals, family systems and businesses.

Amy explained that the collaborative process starts with an appointment with the attorney to make sure collaboration is appropriate for the situation. If it is agreed that the case is appropriate, both sides work with an attorney and team committed to the collaborative process.  From there, the case is triaged: referrals made, documents signed, teams formed. According to Bob, the next stage involves meeting with the neutral team members (in “four-way meetings”) to further understanding, including such sticky matters as the emotions attached to finances.

And speaking of finances, here’s something that will get everyone’s attention. Bob shared research showing that the average collaborative case in Atlanta takes about 7-8 months and costs roughly $24,000-$26,000. In contrast, Amy said—disclaiming from the top that there is no such thing as a typical litigated case—that in Atlanta in a jury trial of a divorce with medium complexity, the average cost is about $100,000. Per party. Just for the litigators.

Take that financial cost and now tack on the emotional cost (and who in today’s society doesn’t know someone who has been scarred by divorce?).  Marsha highlighted the children-centered aspect of the collaborative process. She said that the aim of the process is to have the adults see that they are “un-coupled, but still co-parents.”  The collaborative practice is all about mitigating the damage on all family members.

Other not-to-be-missed topics discussed in the hour-long conversation included:

• Some examples of how to handle the structure of the business when one non-working party to the divorce wants a piece of the company.

• The special problems presented by multi-generational family members in the business when a divorce occurs.

• How to best help non-family members who work in the business during a divorce.

• Personal reflections from the panel members on why they choose to work in a collaborative practice.

• Ways to use collaborative practice in areas other than divorce.

• A discussion of resources available to help you get educated on collaborative practice.

Be sure to download the Podcast to hear all the powerful concepts our panel shared.

And for more information on the Collaborative Process visit the following site:  Atlanta Collaborative Divorce Alliance

You can also contact our guests directly:  Robert D. Bordett, CFP, CDFA, Consolidated Planning Corporation-Telephone: 404-892-1995-Email: bob@u2agree.com//Marsha Schechtman, LCSW-Telephone: 770-753-4911-Email: marshaschechtman@atlantanpc.com//Amy Waggoner, Waggoner Hastings, LLC-Telephone: 770641-8200-Email: awaggoner@atlanta-familylaw.com

On Thursday, March 11^th (live at 1:00pm) we will welcome three guest, Amy Waggoner, a leading Atlanta divorce attorney and Partner with Waggoner Hastings, LLC, Robert Bordett, CFP, CDFA, SVP Consolidated Planning Corporation, and Marsh Schechtman, LCSW who will tackle the subject of resolving major conflicts, including divorce, that could have the potential to not only destroy the family, but also the family business.

Our team of experts will discuss collaborative practice as it applies to family business issues.  Collaborative practice is a multidisciplinary approach to dispute resolution in which the parties work with a team of professionals, including lawyers, financial neutrals, and facilitators, to create a solution that meets the needs of all involved.  Collaborative practice can be used in negotiating original corporate formation as well as in negotiating corporate dissolution.  Collaborative practice also may be used in divorce to ensure that the divorce does not destroy a family business that the parties have worked so hard to maintain.

Our prior shows have emphasized planning around a number of different issues that family businesses face, and this show is no exception.  Understanding the value of the collaborative process will allow you to be prepared if conflict arises.   The show promises to be a lively and informative discussion so please be sure to join us–or download the Podcast after the show if you can’t listen live.

Our Guests

Amy K. Waggoner is a collaborative family law attorney.  Her focus is working together with clients in transition to find creative solutions that promote the best interests of the family and the children. In addition to the collaborative practice of family law, Amy serves as a Guardian ad Litem to protect the interests of children who are involved in contested custody matters and regularly volunteers her time in helping children and families through the Atlanta Volunteer Lawyers Foundation.

Amy is a founding member of the Atlanta Collaborative Divorce Alliance, and a member of the International Academy of Collaborative Professionals, the Collaborative Law Institute of Georgia, the Family Law Section of the Atlanta Bar Association, the State Bar of Georgia, and the State Bar of Tennessee.

She regularly lectures on collaborative and family law issues, particularly those involving implementing creative, non-adversarial solutions to legal issues.

Amy Waggoner, Waggoner Hastings – Telephone – 770-641-8200

Robert D. Bordett is Senior Vice President of Consolidated Planning Corporation.  He is a Certified Financial Planner, Certified Divorce Financial Analyst, and a registered mediator and arbitrator with the Georgia Office of Dispute Resolution. He is committed to positive outcomes for divorcing families.

Bob has spent more than 25 years providing financial expertise in collaborative practice and mediated divorce proceedings.  He is past president of The Collaborative  Law Institute of Georgia, past board member of the International Academy of Collaborative Professionals (IACP) and a member of the IACP Advisory Council on Collaborative Practice and Training.  In addition, he is past president of the Georgia Society of the Institute of Certified Financial Planners, served as a National Committee member for the Institute of Certified Financial Planners, and is a founding member of the Family Mediation Association of Georgia.  In addition, Bob is a current member of the Association for Conflict Resolution, National Association of Tax Practitioners, Financial Planning Association, and Association of Family and Conciliation Courts.  He has written numerous articles on financial planning and Collaborative Practice that have been published in the Atlanta Journal Constitution, Journal of Financial Planning, Georgia Family Mediation News, Fidelity 401K magazine and has appeared on CNN Sunday News.

Robert D. Bordett, CFP, CDFA, Consolidated Planning Corporation – Telephone – 404-892-1995

Marsha has a Masters degree in Clinical Social Work from Florida State University.  She has been a clinician for over twenty five years and has been practicing in the Atlanta area since 1982.

Marsha has had a full time private counseling practice since 1990 where she works with adults, adolescents and children in individual, family and group settings. For the past ten years, a good portion of her practice has been providing marital therapy to couples. She has also assisted couples and families who are transitioning as a result of separation and divorce. Marsha has provided Co-Parenting Counseling as well as Parent Coordination services for couples and families.

In 2004 she received her training as a Collaborative Divorce Coach and Child Specialist. She has been a part of many Collaborative Interdisciplinary Teams as a Divorce Coach or Child Specialist. Marsha is a board member of the Collaborative Law Institute of Georgia, serves on the research committee of the International Academy of Collaborative Professionals and is a member of the IACP. Marsha has facilitated a number of CLIG Practice and Organizational Development Group (POD) meetings, providing continual education for members, is a trainer for CLIG’s introductory and advanced trainings and provides basic and advanced training for collaborative professionals throughout the United States. Marsha is a registered general/civil mediator and divorce mediator.  Marsha is an active member of the National Association of Social Workers and the Academy of Clinical Social Workers.  Marsha Schechtman, LCSW – Telephone – 770-753-4911