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The Family Business, The Next Generation

Family Business I: Introducing The Grandchildren

When it's time to let go of a family venture, will the kids be ready to step in?

by Francesca Di Meglio

It's amazing what can strike up nostalgia. For Paul Karofsky, all it takes is one whiff of wallpaper paste and one scratch of sandpaper to take him back to his childhood. As a boy, he'd often go with his father and grandmother to work at the family's wallpaper business. "It may sound crazy," says Karofsky, "but the scents and sounds bring back all these warm memories."

As an adult, Karofsky went on to spend 22 years working at Northeastern Wallcoverings before eventually selling the business. He knows firsthand that a family business is built on the arms of unified, committed relatives. But while you may entertain the possibility of keeping your business in the bloodline, reinforce to your grandchildren often that they shouldn't feel pressure to continue the business, but consider it an option — one of many possibilities open to them in the bright future.

Child's Work, Child's Play?

Take a cue from Karofsky's family members. When he was young, they gave him responsibility for a few simple, specific tasks at the office such as stapling and collating documents. Emptying the trash and making photocopies may be new to your grandchild and can make him or her feel like a contributing member of the business. "Play is the work of children," says Karofsky. "If they can play in a work environment, your grandchildren will associate it with fun."

Mark Isreal, owner of New York City-based Doughnut Plant, smiles as he recalls testing recipes with his grandmother, who ran a bakery with his grandfather (before he passed away when Isreal was 3). "She sold the baked goods at the counter and decorated cakes. As a boy, I'd go to her house and we'd make cookies, bread, bagels, and pies. We'd have so much fun together. I was learning all this stuff without even knowing it," he says.

Life of the … Office?

To give your elementary-age grandchild a taste of how the business operates, think of out-of-the-ordinary ways to take him or her on a facilities tour. Instead of handing off the child to an assistant for a walk-through, opt to play tour guide yourself. Attach funny stories to different spots along the walk and tell your grandchild how the space has changed through the years. Maybe you remember a time when there were no file cabinets or cubicles and desk chairs were being pulled from cardboard boxes and assembled.

Play show-and-tell with the materials found in production areas. The goal is to show your grandchildren the family's work using a hands-on approach. Invite them to get their hands dirty. Introduce them by name to employees and let them test out, under your watchful eyes, the equipment. If you have a factory, have them try a stint on the assembly line. If you're a landscaper, let your grandchildren give the plans you drafted a gander before letting them plant a shrub or two.

When asking your grandchildren to take on tasks, though, let them decide the level of involvement they prefer. After years spent mowing lawns, running grounds tours and errands at his childhood home, the Shirley Plantation, Randy Carter says he rebelled. Craving to do his own thing, Carter left the family business to try real estate and grounds maintenance elsewhere.

Carter eventually returned to the Charles City, Va.-based plantation, where he now reports as deputy director to his brother, but other children who decide to leave the family business may not. "You can't make them be interested," says Carter. "You can plant a seed with your grandchildren, but you can't shove the business down their throats."

Talking Business

A tale dripping with details will capture the interest of any grandchild more than an accounting lesson would. Kurt Schmidt, president of St. Louis-based AE Schmidt Billiards can still picture his grandfather telling stories from behind his desk. His granddad filled him in on how he guided the pool-table-making company through the darkest days of the Depression. Today, Schmidt proudly points out what a feat his grandfather accomplished by keeping the business afloat at a time when most families struggled to put food on the table.

Even in stable times Schmidt says those real-life stories his grandfather told are what motivate him to keep promoting the company. Time spent showing the children your devotion to and passion for the business — and passing down lessons learned — can provide inspiration to them later when they may face troubling times of their own (whether related to the business or not).

All Ears, All the Time

For any family business to thrive, openness and honesty are essential. Children absorb every word uttered at the dinner table or ballgame — including those about business disputes among relatives. Discuss peak achievements as well as the unexpected failures you faced through the years — from increasing profits to dissolving contracts. Filling your grandchildren in on the triumphs and mistakes you and your adult children made could prevent them from repeating history.

Guiding — Not Forcing — Decisions

Schmidt's tip: If children are receptive to being pulled into the family business fold, adult relatives should know when to let go. He's grateful that his elders, after handing down the reins, let him make his own mistakes and put his own stamp on the business.

As a parent, Schmidt advises his children above all to search for jobs that will bring them joy. They've seen the pleasure their father derives from work. They've also seen the long hours he toils away at it. Ultimately, he says, each child will have to decide if joining the family business will be the right move. And, regardless of the outcome of those decisions, he lets his children know his love will remain a constant. Karofsky agrees. "Give them a hug and a kiss and every ounce of support," he says. "Having grandchildren doesn't mean we will get to relive our lives. It's their life to live."

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about the author

Francesca Di Meglio is a freelance writer based in Fort Lee, N.J. A community manager and reporter for BusinessWeek.com B-Schools Channel, she and her team won the 2007 National Magazine Award for Interactive Service, also known in the magazine industry as the "Ellie." Di Meglio's work has appeared in Ladies' Home Journal, iVillage.com, and Monster.com. "Our Paesani" is a weekly column about today's Italy that Di Meglio writes for ItaliansRus.com and LasVegasLaVoce.com
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