Case History # 2 A special summer series of three essays on select business issues that were dealt with by Lubicom Business Consulting. Some of the names and circumstances were changed to protect the identity of the clients.
The Dilemma – Mendy is the youngest of four brothers that joined an extremely successful business founded by their grandfather. After learning in Kollel for five years, he joined the firm and enjoyed a very comfortable lifestyle. Assessing their future, the Katz brothers decided that Mendy would be the right person to expand their horizons. They were willing to invest family money to pursue other opportunities in the hope of further growing the Katz enterprise. Mendy’s father had a vision of where he thought the family should put its money next. To please his father and to fulfill the family wish that he be the guide to broader opportunities, Mendy did his due diligence into the field his father seemed to cherish as a “great business.”
The challenge that was thrown Mendy’s way was to say the least daunting. He would be the one to test the waters and moreover the success or failure of the family’s vision rested on his shoulders. As the newcomer to the business, he would somehow have to produce. “I went to sleep every night fearing that I could possibly fail my family after they had been so successful in their business for so many years, going back to my zaide,” Mendy confided. Yet, he persisted in researching the business area that his father seemed to have his eyes on. The more he dug and explored, the more he discovered that he had a personal dislike for the field. No, he was not about to admit failure; nor was he about to bail out. But he somehow had to move away from his father’s favorite.
What came next for Mendy was equally as trying. He looked into multiple business opportunities and realized that each came with considerable risk. While his brothers were basically thriving in the comfort of the family business, he was fidgeting with angst on how to fulfill the family’s desire for him to be a trailblazer in an entirely new field. The prospect of failure stared him in the face at every turn and what he wanted least was to be his family’s charity case. “It wasn’t about my self-confidence,” he said. “I know that I have certain strengths which I could bring to bear in any business venture.” He proceeded to rattle off such traits as being extremely creative, well organized, and very analytical.
The clock was ticking and although no one stood over him to observe his every move, he knew that he would somehow have to eventually make a move. Of all the options he considered, the least attractive was to admit being at a stalemate and crawling back into the family claws. “My wife urged me to seek out an experienced business consultant to help me sort out my different possible paths, which is why I came to you,” he said.
The Solution – It was clear that Mendy had to somehow come up with a plan that would first and foremost satisfy the family. He was after all playing with house money and his very future hung in the balance. While he would not be shown the door by his father and brothers, he needed to carve out a niche for himself that would offer him status within the family and enhance his self-esteem. I agreed with him that despite his father’s oft-expressed preference for a specific business area, he should not venture into a trade that he truly does not like. He even tried out the field by being involved in a possible transaction but found that “it wasn’t for me.” It is important for people, as much as possible, to enjoy what they do. Mendy clearly did not enjoy what his father dreamt of having the family go into.
Being involved in the family business in some fashion was in general a very sound idea for Mendy. He would have been surrounded by his brothers who have been in the business for years. It promised to provide him with a steady good income and the weight of the business would not be solely on him. Of extreme importance was that he would most likely find one of his brothers as an ideal mentor, something that I believe every young person should seek out. He learned a great deal even during the short time that he was with him.
Each of the business options that Mendy had looked into offered him none of what the family business had in store for him. At one point he realized that his family was so comfortable with their business model that they often seemed dismissive at some of the ideas he brought to them. He also recognized that at the end of the day, he would have to revert to them for approval since it was after all the family’s money he would use.
Despite all the negatives that seemed to be hurled his way, Mendy was determined to proceed. As he flatly said, “failure was not an option.” He even thought of offering his family his full attention to expanding their existing business but knew that they would frown at the idea of his immersion into the family business that already supported his brothers. “In any case, I thought, why would they need me to expand what they were already successful in and aren’t they supposed to be doing that regardless? “They clearly were looking for more revenues to pay for me and my family,”
As we carefully reviewed all the business options he explored, one triggered a thought that I ultimately advised would be the right course to pursue. While it was not the same business as the Katz enterprise, it included elements that were closely related. It was after all, a renowned and highly respected field that is associated with success. For all practical purposes it fulfilled the criteria that I felt was important for Mendy to pursue. The family would easily understand that it had elements that they were very familiar with. Their guidance and advice would be invaluable. At the same time, it was so different that it met the mandate that Mendy was charged with.
PS. Mendy is exploring the possibility with the full blessing of the family. He feels as if a rock has been lifted off his chest and even his skeptical father saw the merits of this expansion. What was left for Mendy to do was to bring them the right deal that would make sense.