Case study: drawn to a different dream

Nation's Business, Nov, 1997 by Mark I. Sirkin, Mel Holson

Jason always wondered what life would be like without a family business. Now, at age 50, maybe it's time to find out. His love of horses and horse racing has always been intense, while his position as owner and general manager of the family's clothing store, Burns & Son Clothiers, just doesn't cut it anymore.

Founded 45 years ago by Jason's parents, the company is now in severe jeopardy, with its niche in upper-end children's wear being filled increasingly by designer boutiques in large department stores.

Jason was raised in a warm and loving household, and his parents had silently counted on their only child to be their successor in the store. But when he completed business school and was about to start a career outside the family firm, the message from Mom came through loud and clear: "Your father needs your help." Jason was beckoned to fulfill his obligation. How could he refuse?

Now, some 25 years later -- with aging parents still working part time in the business, with grown children showing no interest in the company and just starting their own careers, and with a supportive wife -- Jason is restless. His job, though financially rewarding, lacks challenge. He built Burns & Son to its potential, and he has modest savings, but he yearns for the excitement of the track as a second career -- in management, perhaps, or as breeder -- though his income likely would decline.

Jason wonders how to follow his own star and manage his lingering responsibility to his parents, who plan to retire soon, and his obligation to provide financial security for his wife and children.

Response 1

Avoid Desperation

Jason has come to a crossroads in his life, one that he has avoided for 25 years. He is unhappy, restless, and resentful about the way things have turned out. He feels it's his turn -- not an unusual dilemma for someone at midlife who felt pressured into joining a family business he never truly enjoyed.

The midlife crisis occurs when people, usually between the ages of 45 and 55, take stock of their lives and find that they still have unfulfilled dreams in a life that contains too much emptiness or boredom. Sometimes a sense of panic sets in, creating an urgency that can lead to ill-conceived or desperate solutions. Jason needs to think through his options and weigh his obligations carefully. He should not act impulsively.

Jason has three choices: stay in the business, sell the business, or develop a compromise plan that will enable him to do more of what he likes while honoring his family responsibilities. Each option involves trade-offs in which he will satisfy some people and disappoint others. He should avoid thinking in black-and-white, either/or terms.

As Jason considers the alternatives, he should try to be creative. Can he leverage his clothing expertise into another area? People who ride need special clothes, as do people who work with horses. Even the horses may need special clothes!

Perhaps Jason could open a store catering to the horse-racing crowd and hire a manager to handle the day-to-day affairs in his parents' store. It would be more work for him in the short run, but he would not have to jettison everything he's worked for as he explores new ways to fulfill his dreams.

Response 2

Two Options

Jason's dilemma -- to be a caring son by staying with the declining family business or to be self-centered and pursue his own, independent career -- must be tearing him apart. Is there a way he can be a loving son and still follow the path to independence?

To fulfill his dream, Jason has to leave Burns & Son Clothiers. But must the business close because he leaves? I see two options. It is difficult to sell a retail business that is no longer growing because of new competition, but it might be possible. There still is positive cash flow, and there might be a buyer who is interested. Negotiations should include a requirement that the new owner continue to employ Jason's mother and father for a limited work schedule, which they need for their continued well-being.

A second path is for Jason to leave the business and, ideally, assign management responsibilities to a longtime key employee. But it may be necessary to hire an outsider. With the business still in the family, Jason's parents would not face an abrupt lifestyle change while Jason pursued his dream.

To be certain that the second plan works, Jason would have to monitor the company and keep its cash flow positive even though the firm is in a state of decline. He must know when to pull the plug -- close the doors and sell inventory -- to preserve as much of the invested capital as possible.

In either case, Jason should end up fulfilled personally while feeling good as a caring son. Either choice permits his parents to continue their work and receive income as long as they are willing and able and the store is operating.