Family Affairs

They are notable names that stand out on signs, business cards, advertisements and billboards—Collier, Lutgert, Galloway, Wynn, Bailey, Scrivner and a host of others.

Through their automobile dealerships, grocery stores, restaurants, insurance agencies, development firms and other businesses, these and other families reflect a commitment to the region from generation to generation. But as the reign passes from parent to child to grandchild, family businesses face challenges in keeping the legacy alive.

“I think the family-owned businesses, they’re very few and far between now,” says Robert Galloway, who, with two siblings, represents the fourth generation working in the Galloway Family of Dealerships in Lee County.

Many do not make it, says Colleen Murphy, managing director of Gibraltar Private Bank’s Southwest Florida region. Pitfalls arise in areas including succession, employment, accountability, compensation, ownership, retention of non-family executives and the founder’s transition out of the business, if they don’t discuss these issues and put decisions and goals into writing, experts say.

Sometimes plans aren’t written because the founder isn’t ready to relinquish control, says Murphy. “You could have a founder who’s not willing to create a plan. His or her plan is to stay intact until the bitter end.”

Or children might not want to continue in the family business. Sometimes a sense of entitlement hinders the businesses’ ability to offer the same level of customer service as in earlier generations.

“That is an issue,” Murphy says. “That revolves around compensation—whether it’s clearly defined, whether you’re going to have a family business be seen as a welfare state for certain family members, or a situation where compensation is based on merit.”

There’s also the chance that infighting among siblings could tear the business apart, or some family members might believe that they’re working harder in the business than others, so deserve more.