The Burdens Of Family Ownership

(Continued from page 28) ignore personal opportunities and the chance to increase personal wealth and income for the sake of the business and as a precedent for future generations.

Business ownership can also prompt tension with spouses. Practical advice may urge signing a prenuptial agreement, but that often causes pain to the newlyweds. Marrying into a business-owning family can be difficult for spouses who have not grown up with the pressures of business ownership. Spouses must also live in the light of public expectations.

For example, one wife complained, "I'm expected to be perfect...always 'on.' I have to represent the family at lots ofevents. I have to deflect those who are looking for gossip about the business, and I feel awkward when I walk into the business; all eyes are on me." Spouses also struggle with the time commitment required to attend family meetings and business events.

Why would a family put up with these burdens? We find that several answers-some good, some bad-are frequently given:

"I'm expected to join the business and carry on ownership. If I didn't, I'd feel like I was rebuking my parents wishes for me." We find that thinking to be very negative.

. "Passing on the business is sure better than the alternatives. I'd be afraid our kids might be spoiled by wealth if we sold. But I don't want to give it away either." This reasoning misses the point: Someday all children of successful business owners will have some privileges. The sooner they learn to cope with wealth and position, the better.

. "Figuring out how to sustain our business across generations is a formidable challenge, but it's one that strengthens and binds our family together." Many families argue that succeeding against tough odds is rewarding and fun.

. "By keeping our business in the family, we ensure that our values will be sustained in the company and even more broadly in our community and with other stakeholders." We find passing on family values or sharing the family's business as an example or model of how to help society to be the most compelling reason for continuing. These families share with their children a sense of motivation and mission, of being part of something important and greater than any one individual.

- :*6,s/4x4, st4x6 t 2x2,2x4,2x6,4x4 o Cap & Sub Rail

Cumanr Declcing Kiln Dried - s/4x6 r FSC-certified & non-certified

Mouldin$ - Over 200 stock profiles o Custom knife grinding o Mount Storm's in-house milling facility produces high quality moulding. Our Rosenquist radio frequency gluer can fabricate glued-up solid wood panels up to 48" wide. Sanding is also available up to 53" wide.

Hardwood S4S - Stocking a large inventory of Hardwood S4S - 1x2 lx4 1x6 1x8 lxl0 1x12 o Redoak r Hard Maole r Cherrv o Poplar r Birch

. Walnut

Hardwood Pllnoood & Lumber

Consult website for full inventory

Several burdens accompany family business ownership. We hope those family members who are not employees appreciate the extra load carried by family members who are in the business. We hope everyone in the family will seek to understand how different family members carry different burdens.

We also hope the business-owning family explicitly defines the special meaning and value of family ownership. The more compelling the mission of the family and the business, the less burdensome ownership feels.

- John Ward is co-founder of the Family Business Consulting Group, Marietta, Ga.; (800) 551-0633. He can be reached at ward @efamilybusiness.com. Craig Aronoff is a co-founder and principal, and can be reached at aronoff@efomilybusiness.com.

Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.

Merger Greates ldaho Giant

Idaho Forest Group LLC is the name of the recently merged Bennett Forest Industries and Riley Creek Lumber (see Aug., page 33).

The merger creates Idaho's largest forest products company, with five manufacturing facilities - Chilco, Grangeville, Laclede, Moyie Springs and Priest River-capable of producing over 800 million bd. ft. of lumber a year. Products include Douglas fir, larch, white fir, hem-fir, ponderosa pine, ESLP, SPF, and cedar.

The sales staff is presently in Chilco, but will relocate to Coeur d'Alene early next year after construction of a new office is completed.

Boise Closes Veneer Mill

Boise Cascade ceased manufacturing Sept. 1l at its veneer mill in St. Helens, Oregon.

"The current market for wood products, and prolonged downturn in demand for products using veneer produced at this mill, have necessitated this closure," said BC's Bob Smith.

The company opened the veneer plant in l97l after purchasing the former sawmill site in 1969.

"At this point in time, we consider this a permanent closure," Smith said. "Our plans are to retain the property and mothball the facility for the foreseeable future. We discontinued our swing shift in February and have already experienced numerous temporary curtailments this year."

Oregon Hardwood Mill Opens

Collins Cos., Portland, Or., begins production this month at the Upper Columbia Sawmill, near the former Potlatch tree farm in Boardman, Or.

The sawmill, a sister planing mill at the Port of Morrow, and the tree farm are owned by Greenwood Tree Farm Fund, whose partners include Greenwood Resources, which will manage the tree farm, and Collins, which will run the mills

Potlach originally planted the fastgrowing poplar tree farm for pulp, but current owner Greenwood sees more value in cutting the trees for saw logs.

Initially, the mills will process only logs from the poplar plantation, but may use other sources in the future, according to Todd Laitinen, project manager for the construction of the facilities. Collins is marketing products from the mills under the trademark "Pacific Albus."

The sawmill is set to open Oct. l3 and the planer in early November.

Laitinen speculated that the operation could one day be among the largest hardwood samills in the country. "The largest is 100 million bd. ft., and we're shooting for 90 to 100," Laitinen said. "We're not guaranteeing we're going to be the largest, but we're going to shoot for it."

Fire Destroys Oregon Yard

Bronson Lumber Co. lost its La Grande, Or., store in an early morning fire Sept. 14. Although the main building and its contents were a total loss, firefighters managed to salvage the lumber and warehouses out back.

The location continues to operate despite the loss. "They're actually making deliveries as best they can," said Craig Beverage, manager of Bronson's store in Union, Or.

Unfortunately, the computer for all four Bronson yards was housed at the La Grande location and destroyed in the blaze.

The fire was the second disaster this year for the La Grande location. In the spring, severe winds blew the roof off the building. "It's like a double whammy," Beverage said.

At n."t Lumber Service, we supply domestic and foreign hardwoods.

Our products and services include: llardwood Lumber & Pine

. flardwood Plywood & Veneers

. Melarnine Plywood

Hardwood Moulding (alder, cherry, mahogany, MDF, rnaple, red oak, paint grade, pecan hickory, white oak, walngl, beech)

. Milling (moulding profiles, S2S, SLRIE, SLR2E, & resawn lurnber) interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. Ve stock a complete line of cornplernentary products to cornplete virtually any woodworking or rnillwork project.

Voodworking Accessories (appliques, ornarnents, butcher blocks, corbels, etc.)

. Woodworking Supplies (deft finishes, color puttyo adhesives, etc.)

2x4 Grn oo5Fi:_" ---"

2xS GgD6ug Flr

1%',W

2x4 GrnDoue Firl : --ol

2x4 KD D.Fir, Hem Fir, \{h, Fir Cedar

4x4 Grn D Fir, Hem Fir, Wh Fii- '

2x6 Grn Doug Fir

2x10 Grn DoueFir

Dave Ramsey, ex-Mason County Forest Products, is now with Welco Lumber. Olympia. Wa.

Mike Teresa, ex-Shasta Industries, has joined Building Material

Distributors, Galt, Ca., as building products executive general mgr.

Jim Stockman, chief operations officer, Hayward Corp., Monterey, Ca., has added the title of v.p.

Mike Caputo, ex-All Coast Forest Products, is now representing TimberTech in Southem Califomia.

Brandon Koger, ex-Parr Lumber, and Tammy Snook, ex-ProBuild, are new account mgrs. at Capital Lumber, Tangent, Or.

Roy Crow retired at the end of September after l6 years with Frank Lumber Co., Mill City, Or. Chris Close, ex-Cascade Wood Products and Willamette Industries. is the new sales mgr.

BUILDING MATERIAL Distributors. Inc.. Galt, Ca., entertained top dealer customers and suppliers at its recent 25th Anniversary Golf Classic in Woodbridge, Ca. A post-tournament banouet included a birthday and retirement celebration lor former BMD Dresident and c.e.o. Steve Ellinwood. (1) Don Koch, Ellinwood, Scott Myers. Jim Pelka. (2) Adrian Garcia, Dan Medzyk, Matt Firks. (3) Mike Bugbee, Garry Tabor, Steve Taylor, Chris Nelle.

Dan Kingery has been named v.p.sales & marketing at Platte Valley Woodworks, Fort Collins, Co., and will oversee expansion into markets nationwide.

Pat Carper has retired from Bennett Forest Industries, Coeur d'Alene, Id., after 35+ years in the industry.

Linda K. Massman, Potlatch Corp., Spokane, Wa., has agreed to serve as v.p. of finance and chief financial officer for Clearwater Paper Corp., the proposed spin-off of Potlatch's pulp-based businesses.

Brett Wood has been promoted to president of Toyota Material Handling USA, Irvine, Ca., succeeding Shankar Basu, who remains c.e.o. and becomes chairman.

Gary Townsend, president-solid wood products, West Fraser, Vancouver, B.C., will retire at the end of the year, along with Martti Solin, c.f.o. and executive v.p.finance & corporate development, and Bill LeGrow, v.p.-transportation & energy. Effective Jan. 1, Gerry Miller will become c.f.o. and executive v.p.-finance; Ray Ferris, v.p.-solid wood products, and Mark Thomson, general mgr.transportation. Larry Hughes, senior v.p. and secretary, will assume primary responsibility for corporate development.

Larry Williams has resigned after five years as president of the Steel Framing Alliance, to join the International Iron & Steel Institute in Belgium. Mark Nowak is serving as acting president of SFA, while the board seeks a permanent replacement.

Linda Geise has joined Do it Best Corp. as merchandise mgr. for housewares.

Michael Mangan is now senior v.p. of Black & Decker and president of its Worldwide Power Tools & Accessories division.

Matt Carey is the new executive v.p. and chief information officer for Home Depot.

Karel K. Czanderna has been named group president of building materials for Owens Corning.

Reginald Howatson is now senior account executive for ScoopSoft ERP sales in North America.

Lotta Puffin heads the new fitness program at Mungus-Fungus Forest Products, Climax, Nv., report Hugh Mungus and Freddy Fungus.

Terretec Naturals* is appealing on many levels. Because it's made with rice hulls and recycled plastic and requires none of the preservatives or biocides that many woo&based composites use, it is an ideal choice for homeowners iooking for green alternatives. But, the bene6ts of rice hulls don't srop there'

Using hi$+ilica rice hulls in the composite mix gives you a very dense, durable deck board thati naturally resistant ro stains, molds and insects. Terratec was also developed as an building svstem, which makes installation easier. Terratec Naturals is available to retailers throughout the Northwest and Northern

Fastener Distributors Merge

PrimeSource Building Products, Carrollton, Tx., has purchased the assets of fastener distributor Compass International. Anaheim. Ca.

Compass' brands include Darts self-drilling screws, DeckMark deck fasteners, TapMark concrete accessories, and Marker drywall, sheet metal, wood, cement and multipurpose screws, steel building fasteners, and driver accessories.

Compass has offices in Anaheim, Chicago, Houston, and Atlanta.

California. Visit our website to learn more. To help kick things off, were including Terratec Naturals in our 107o customer rSate deal. Homeowners can save up to $300 if they use our ExtraGreen' treated lumber for the under-structure. Simply have them enter "Sweet Deal" as their promotional code in the discount coupon form on our website, All that's required is proof ofpurchase. Offer good through 12.08, sorne restrictions apply. Et the best outdoor ptojects start with the best materials