It's all relative: can a newcomer revitalize a family business—without igniting a family feud? Learn from 3 entrepreneurs who did just that

Entrepreneur, March, 2005 by Chris Penttila

You must have a hands-on grasp of the core business processes first, says James Olan Hutcheson, president of ReGeneration Partners, a family-business consulting firm in Dallas. Even better, family members should seek outside work experience to get a well-rounded perspective and ask to he interviewed like any other applicant before they enter the family business. This lays the groundwork for what's expected and also what the younger generation expects. "Establish a code of conduct that says how you'll discuss important matters," Hutcheson says.

Nancy Bass, 43, is third-generation co-owner of the Strand Book Store, founded by her grandfather, Benjamin Bass, in 1927 in New York City. Today, it's an oasis for book lovers who trek to its flagship store on 12th and Broadway or to one of its four other locations around the city. While her dad, co-owner Fred Bass, 75, oversees the book buying and prefers bartering with the public at the used-book counter, Nancy--armed with an MBA and management experience from Exxon--is busy nearly doubling the size of the flagship store. She also oversees 210 employees and manages operations.

Updating a local legend can be daunting. "When I meet people at parties, they say, 'That's my favorite place in New York,'" Nancy says. So how has she pushed big changes such as web-based book selling? "Dad has to get used to things, so I say, 'If this doesn't work, this is the worst-case scenario.' We'll try it in small steps, and he'll get used to the change," she says.

You have to pick your battles and stay flexible, too. "I've given in to a lot of things where I might have the better way, but it's not the important battle," Nancy says. "You can have different paths to get to the same ends." There certainly seems to be no end in sight to the company's success: 2004 sales booked in at about $22 million.

WORDS TO THE WISE: So how do you push change as a second- or third-generation family business member? We asked the experts.

[] "FIND SMALL CHANGES THAT ARE VERY DOABLE, WHERE YOU CAN SEE QUANTIFIABLE RESULTS. TIE THINGS TO MEASURABLE OUTCOMES."--Paula Harveston, management professor at Berry College Campbell School of Business in Mount Berry, Georgia

[] "BUILDING A PROVEN TRACK RECORD IS VERY IMPORTANT. YOU CAN RATTLE A LOT OF SABERS OTHERWISE."--Larry Bennett, director of the Larry Friedman International Center for Entrepreneurship at Johnson & Wales University College of Business in Providence, Rhode Island

[] "FIND THOSE PEOPLE IN THE FAMILY WHO ARE MENTORS AND KNOW HOW TO MAKE THINGS GO FORWARD."--Ralph Daniel, Center for Family Business Dynamics in Santa Barbara, California

[] "[MY PARENTS] LAID THE FOUNDATION. I DON'T THINK IT'S GOOD TO DISCOUNT THAT AND DEPOSE THEM. PART OF THE LEGACY IS KEEPING THAT ASSOCIATION WITHOUT CUTTING IT OFF AND SAYING, 'WE'RE THE NEW GUARD.'"--Ellen Picataggio, managing partner of The Farmer's Daughter in Hollywood, California

ONLINE EXCLUSIVE Have a family business? log on to www.entrepreneur.com/features/ familybusiness for a list of resources to help you keep things running smoothly.