Breaking away from family company

[drstetson]

I want to do my own thing after 18 years in a family company. I’ve got a daughter now and I want to have something that is mine and get 100% of my fees. It’s messy because it’s family. Has anyone had a similar situation that would like to give any advice?

 

[Joe Flacco]

Just tell them. They will understand.

 

[KHS445]

My initial suggestions would be to write down the pros and cons of making this move.

Things like:
- What will be your gross income increase?
- What will be your projected expenses be? Things like E&O, office, utilities, occupancy, software, hardware, CE, supplies, bookkeeping, benefits, vacation, sick time, support, etc.
- How many current clients will follow you?

After you have a good understanding of these types of things, I would sit down with the powers that be and discuss your current situation, explain why you are seriously considering going out on your own, and then see if there is some sort of middle ground all parties can agree to. If things don’t go as anticipated you still have the option to move on.

Are there other family members who are equally as frustrated as you are, who might consider moving on with you? If so, there maybe some strength in numbers.

 

[drstetson]

My initial suggestions would be to write down the pros and cons of making this move.

Things like:
- What will be your gross income increase?
- What will be your projected expenses be? Things like E&O, office, utilities, occupancy, software, hardware, CE, supplies, bookkeeping, benefits, vacation, sick time, support, etc.
- How many current clients will follow you?

After you have a good understanding of these types of things, I would sit down with the powers that be and discuss your current situation, explain why you are seriously considering going out on your own, and then see if there is some sort of middle ground all parties can agree to. If things don’t go as anticipated you still have the option to move on.

Are there other family members who are equally as frustrated as you are, who might consider moving on with you? If so, there maybe some strength in numbers.

I make 75% of my fees at the moment and I’ve worked out the overhead. I’ll be making more and I’ll have something that is mine.

 

[Fernando]

Are you saying you worked in a family appraisal business for 18 years?
Why can't you discuss with your family that you want 100% of your fees in exchange that you pay part of the overhead fees?
If you can't stand your family then that's another story.

 

[Fernando]

If you want to build your wealth, invest in real estate.
Income from appraising is not enough for long term financial retirement.
You can work in your family's business and on side build your real estate empire.

 

[drstetson]

Are you saying you worked in a family appraisal business for 18 years?
Why can't you discuss with your family that you want 100% of your fees in exchange that you pay part of the overhead fees?
If you can't stand your family then that's another story.

I have, and it’s not just about the fee. I’d like to take on the business side of the process for myself, be self employed. My family is fine lol.

 

[KHS445]

I make 75% of my fees at the moment and I’ve worked out the overhead. I’ll be making more and I’ll have something that is mine.

I made the decision to breakaway from a longterm business relationship and was receiving 85% of my fee. I have a home office and my office related expenses run less than 5% of my gross.

Good luck and let us know how things turn out.

 

[Terrel L. Shields]

I’ll have something that is mine.

That might be a pyrrhic victory. Owning your own business isn't necessarily all rainbows and unicorns. But I think my biggest concern was to not poach my family clients. I'd want to get my own clients and not compete directly with the family.

 

[drstetson]

I have, and it’s not just about the fee. I’d like to take on the business side of the process for myself, be self employed. My family is fine lol.