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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Sept. 26, 2001)
September 26, 2001 A When Selling Makes Sense faced about the unknow n results of the split. Financially, the origi ness into two separate entities is nal business was doing well. how second generation brothers W ould the separate businesses Jon and David Marks chose to survive the costs o f the split and maintain a closely-knit family. The o f form ing new adm inistration brothers had worked together for and operations? H appily, in the thirty years and admit that they second year after the 1997 split have different management and and m any grow ing pains, each philosophy styles. However, when business alone is earning more the third generation began to enter than the original single com pany the business, David and Jon knew ever did. SHAPING A SALE sotnething needed to change if the There are legal and financial family and the business was going implications when selling the fam to survive. Fortunately, the Marks com ily business. All of the companies pany had two separate locations in this article worked with attor and separate clientele. “I resisted neys, accountants and financial at first when David recommended I and investment advisors. Sale of a that we split,” says Jon, “but I family business can take time. The greatest difficulties often eventually saw that it would work and give each of use the latitude to lie in the personal emotions asso ciated with a sale. grow.” Som etim es a fam ily business Naturally, fear and anxiety sur- continued from C8 d o esn ’t know w hether selling is the right thing to do. They might not know the questions to ask and w here to start. “Jon and I went to a three-day seminar given by Pat Frishkoff,” says David M arks. "It was an eye opener, and it helped give us direction. Pat listened and assured us that we were experiencing normal fam ily business issues.” Jon credits Pat with getting them through the process, “The educational tools and w orkshops of the A us tin Family Business Program were a superb resource for us.” Kay Cooke is the Marketing Manager of the Austin Family Business Program of Oregon State University. She can he reached by calling 541-737- 6014 or 800-859-7609. For more on the program, go online to wHW.familybusinessonline.org. To Lease or Not to Lease Should you buy or should you lease your building space and your equipment when you start out in a new small business? Very often, it’s sm arter to lease rather than take on the large financial outlays or debts necessary to buy. W hen it’s smarter to lease, here are some of the q u e stio n s you should ask before putting your ’name on the dotted line: 1. Does the lease specifically state the square footage of the prem ises? T he to tal rentable square footage of the building? 2. Is the tenant’s share of ex penses based on total square foot age o f the building or the square footage leased by the landlord? Your share may be lower if it’s based on the total square footage. 3. Do the base year expenses reflect full occupancy or are they adjusted to full occupancy (i.e., base year real estate taxes on an unfinished building are lower than in subsequent years)? 4. Must the landlord provide a detailed list of expenses, prepared by a CPA, to support increases? 5. Does the lease clearly give the tenant the right to audit the landlord's books or records? 6. If use of the building is in te r ru p te d , d o es the lease define the rem edies available to the tenant, such as rent abatement or lease cancellation? 7. If the landlord does not meet repair responsibilities, can the tenant make the repairs, after notice to the landlord, and deduct the cost from the rent? 8. Is the landlord required to obtain nondisturbance agreements from current and future lenders? 9. Does the lease clearly define how disputes will be decided? For more information on all of SBA ’s programs for small busi nesses, go online to www.sba.gov. Bring ¡Jour Hext Conference or M in g Io Portland, Oregon Rov Jav. President/CEO FREE ASSISTANCE: (503) 244-5794 EXT 45 www.minorityconventions.com www.oregoncvb.com R oy J ay E nterprises I nc . O regon C onvention and V isitor S ervices N etwork I (In partnership with P0VA) We Support Minority Business $ Ask about our connection referral program. Page C9 MINORITY BUSINESS r \.„J r Portland (Obsrrurr $ t f t «? v i a l c d t t i o it ♦ PACIFIC POWER Pacific Power a Division of Pacificorp Joins with CL he JUnxdlanh (Oh se ru er in Celebratili Minority Business Development week. Let us take time to honor the energy, determination, and optimism of our state's minoritv entrepreneurs. Pacificorp believes that support of the Enterprise Zone can be an integral part of the development of an economically strong and livable community.
