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Family Run Businesses Need Succession Plan

Family-run businesses need proper planning to handle smooth succession, according to Roger and Russell Allred of Allred and Associates. The Allreds, authors of The Family Business: Power Tools for Survival, Success and Succession, will present a business session on planning for smooth succession of a family business from 11 am to 12:15 pm, Wednesday, March 11.

The Allreds will show family business owners how to handle the challenges of balancing love and money. The presentation will include a parody of "Home on the Range," entitled "Oh. I'm So Deranged" as well as a screw-driving competition and a water demonstration. The four-part presentation will incorporate stories of the families the Allreds have helped as business consultants and mentors.

Beginning with a definition of reasons why a family is in business, the presentation will cover the Allred's family plan. "The family plan is necessary to identify and define a family business's purpose," says Russell Allred. "Some families are in business to serve a community, some to employ the less employable family members, and some simply to make money."

Family businesses also must formulate a strategic plan. The strategic plan defines how a family-operated business makes money. The plan shows owners how to capitalize on the market," says Allred. Also incorporated is a goal to establish a vision for the company. "Setting deadlines and requiring accountability are especially important in family run businesses," says Allred.

A succession plan is critical to the continuing prosperity of a family-run business, says Allred. "Family businesses must know who will take over when the current company president retires or passes away."

The Allreds lastly will discuss the necessity of a business estate plan, which lays out how the assets of the owner will be divided at the owner's death. "This is a common problem area," says Allred. "In many cases families try to divide assets among several family members when only one family member is involved in the business. This dilutes that person's ability to proceed with the business."

Russell Allred is a marketing specialist who has a record of helping businesses increase sales on a budget. He teaches marketing and advertising for the Kern Community College District. Russell also is a court-appointed receiver and licensed real estate salesman.

Roger Allred graduated magna cum laude from Brigham Young University. Roger is a CPA, a court-appointed receiver, and chapter 11 bankruptcy trustee. He has worked as the chief financial officer at three multimillion-dollar companies and has performed many business turnarounds.

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