The Business of Family

Tiho Brkan is back for a second conversation about family office investing, including a deep dive into real estate mezzanine finance investing, uncorrelated assets for downside protection, citizenship by investment, second passports, territorial tax systems and his global view of markets today. Tiho is a Global Citizen & Investor, and today runs the multifamily office, The Atlas Investor on behalf of his family and other ultra high net worth families and individuals. I've been fortunate to build a friendship with Tiho since connecting last year and always enjoy our multi-hour conversations about the state of the world, investment opportunities and challenging each other to see things from different perspectives. Tiho has a mind like no other person I've met and it's a privilege to listen and learn to him whenever I'm given the opportunity. To hear Tiho's first appearance on the podcast, please visit: Tiho Brkan – Global Deal Flow for Family Office Investors. Standout Quotes: "Is Cash going to be King or is cash going to be trash?" - [Tiho] "While it's easy to make money today and everything seems to be working, the question for very smart investors is to anticipate what's around the corner" - [Tiho] "If you think about a Real Estate cycle, you have 4 stages; Early-stage, mid-cycle, late-stage, and downturn... in Early-stage, you want to be in equity as much as possible" - [Tiho] "We don't do deals with any developer that doesn't have more than one exit strategy" - [Tiho] "If a senior lender is doing 37 million, talk to them, ask them about the due diligence because they're putting far more money than you are and they've done it all" - [Tiho] "The way that you diversify your portfolio, you can also diversify your life" - [Tiho] "Stick around very experienced people who have been around for a long time, who have survived the cycles... Stick with a talented group of people who have a low personnel turnover" - [Tiho] "Negotiate... Negotiate... Negotiate" - [Tiho] Key Takeaways: Mike's previous episode with Tiho Brkan is one of the most downloaded episodes, and by popular demand, he had to bring him for a 2nd episode. Tiho shares that a lot of investors in this period want to make a lot of money as quickly as possible, as this time is not very suitable for long-term investment. He explains the reasons why this recession has been the worst in a long time, but this does not reflect in some assets and certain locations. In normal valuation, reprisals happen where you hold cash which gives you optionality and the ability to be selective, but where money supply around the world is increasing at a rapid speed, is cash going to be King or is cash going to be trash? Tiho explains that as a contrarian investor, you ride a certain wave until valuations become extreme for you, understanding that high valuations today entail future disappointing returns and so rather, you go and look for relative value elsewhere. Family offices don't have to be restricted to one type of asset, they have an 'Open Mandate' and Tiho describes the various opportunities available for family offices. Most investors are asking, 'how much money can I make by next Monday?' while he is asking 'How do we only lose 20% rather than 50% in the upcoming downturn?' The capital stack' and 'Mezzanine debt': There are 3 Real Estate strategies which are Core Real Estate, Value add Real Estate or Opportunistic Real Estate. Mezzanine debt is most commonly a strategy seen in opportunistic Real Estate investment. Mezzanine debt exposure is the most versatile in all 4 stages of the Real-estate cycle(early, mid, late, and downturn). With Mezzanine debt, you can get up to 15% returns per annum. Tiho's due diligence process before investing: First, the deal must be 'shovel ready' meaning construction starts immediately. Next, note the purpose or theme and planning of the project, location of the project, the track record of the borrower, feasibility studies, the general contractor or quantity surveyor, Securities, and the Exit Strategy. What is the Monitoring process? This involves Weekly and fortnightly communication to get updates on the project. it may also involve site visits by you or a Real Estate expert, and construction status updates. Discussing Residence Planning perspective: What is the purpose that we're trying to accomplish here? The OECD tax model: This is divided into 4 segments of how income is taxed. First is the "No Income Tax", second is "Territorial Tax". "Residence-based Taxation" is third. Last is "Citizenship Based Taxation". An important investing lesson: Stick around very experienced people who have been around for a long time, who have survived the cycles. Stick with a talented group of people who have a low personnel turnover. Everything is negotiable in the world of finance. Episode Timeline: [00:50] Introducing 2nd-time guest "Tiho Brkan", by popular demand. [02:30] From your perspective, what have you seen evolve over the last few months from this pandemic? [09:03] Are Contrarian investors nowadays taking advantage of the increased supply of money or sitting on their hands? [13:52] Discussing the impact of the increase in money supply on preferences regarding the duration of family investments. [22:38] 'The Capital Stack' and 'Mezzanine debt' in Real Estate projects. [35:03] Tiho describes in critical detail, his due diligence process before investing in a deal. [46:00] The 'Monitoring Process' [52:50] Are there advantages to the double taxation agreement in a cross-border environment that investors should be thinking about? [57:26] The OECD tax model [01:05:10] An investing lesson to his kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Tiho Brkan.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:The Atlas Investor — Changing the way investors diversify into alternative assetsTiho Brkan (@TihoBrkan) / Twitter

Aaron Chin is a second-generation business leader and CEO of Organika, a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives. Growing up in the business motivated Aaron to build on what his father started 30 years ago. Since assuming leadership of Organika, in partnership with his brother Jordan, they have increased business seven-fold and have grown the company into an award-winning, globally recognized brand, focusing on innovation and a vibrant company culture. Standout Quotes: "You start with the mission of the company and that'll help drive your decisions after". - [Aaron] "If you can tweak one little thing in your process that could save you 30minutes...do it". - [Aaron] "You are going to determine yourself, how well you do". - [Aaron] "I really do believe there's nothing like good old hard work". - [Aaron] "My relationship with my brother is bigger than the business... I think I can pass that down to my kids" - [Aaron] Key Takeaways: Aaron's dad had the dream when he moved from Malaysia to Canada to give his kids a chance to get ice cream whenever they wanted. Following the treatment of his kidney stones using natural products, he started the business with a vision to make healthcare accessible for all. Despite the rejection, his father persistently put himself and his products out there, till the business took off. Aaron shares he always had an interest in the family business although his father never tried to impose any expectations to join. Aaron narrates a simple experience where he noticed the boss employed by his father to manage the business got to the office one morning, and deleted all his office voicemails without listening to any one, inciting Aaron's suspicion of the poor management inherent in the business. Realizing the diet differences between the newer and older generation, the company pivoted from mostly vitamin pills to be more involved in superfoods, powders, drink mixes. The surprising eventuality of Aaron becoming CEO in an Asian family where he is the younger brother and always at odds with his older brother, was partly made possible by the family dynamic which started to work out following certain events that strengthened the bond between them. Aaron shares his vision for the company: I want to see us in every single home in Canada. Explaining that his dad wasn't overprotective but rather allowed them to make mistakes, and these mistakes helped them learn how to make fast and efficient decisions. The question: What are you doing about it? If you teach children what wealth means, it's rather thoughtful to leave wealth for them, but if not then it's just an expectation, and things could go wrong. To Aaron's kids: Know the importance of Family because it is more important than even the business Episode Timeline: [00:49] Meet today's guest "Aaron Chin". [01:25] Where did the family business begin, and how do you become involved in this story? [07:40] About Aaron's entry into the business: Was it always an expectation or some other circumstance? [16:09] Describing the business today. [19:55] How did the leadership transition come about? [24:40] Being the younger brother in an Asian family, how did you arrive at the CEO role? [27:15] What sort of investment process did you go through, and how did you formalize the business? [33:33] Would you say the company culture remains unchanged or has it morphed as a result of the impact of Private Equity coming in? [37:45] Aaron shares major lessons learned by trying things and making mistakes at the beginning [38:50] Is there a multi-generational plan to continue the legacy that your father started? [41:03] How do you feel about children inheriting wealth? [42:39] Aaron's letter to his kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Aaron Chin.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:Organika — Aaron Chin is a second-generation business leader and CEO of Organika which is a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.Aaron Chin (@organikaaron) Instagram

Adii Pienaar is the founder of three technology companies, two of which he’s exited so far to create first generation wealth for his family. A prolific reader, writer and maker, Adii brings a refreshing perspective to the way he views family, business and wealth. I was fortunate enough to preview his new book which was released last month, titled Life Profitability. In Life Profitability, Adii provides you with a new perspective for becoming self-aware, recognising your values, and understanding your impact. An enriched life and successful business are not mutually exclusive. In fact, this book will provide you with the first steps in building a business that is more sustainable with increased options for you, your employees, and your family. Standout Quotes: "The biggest burden I felt was that transition from wealth generation to wealth maintenance" - [Adii] "I think in any kind of business partner relationships, as long as everyone is aligned towards the same goal, then everything is hunky-dory, and as soon as someone is not aligned with your process then everything is not hunky-dory" - [Adii] "Whatever I do, it should be that truest expression of self" - [Adii] "There are multiple things that pull us into different directions on a daily basis but having an awareness of when that happens... that's Mindfulness" - [Adii] "I truly believe in transparency for the kids" - [Adii] "The family office should serve as a leg up for the trustees and that's the kids, right? it's not a handout" - [Adii] "Neither the family office or any of our individual lives should be so rigid like we're constantly trying to fit into a single recipe" - [Adii] "The cost of anything we do in life is just Life" - [Adii] "I don't care if they miss 99% of it, even if they become 1% of the context of this conversation" - [Adii] "The way I think about legacy is, if I were to die tomorrow, the goal would be to have left my kids or anyone who cares enough breadcrumbs about who I really was" - [Adii] Key Takeaways: A major transition point for Adii was moving from wealth generation to wealth maintenance. With little information on how to run a family office, he was able to get started by asking questions and got propelled into motion when the law firm got the right people around him to explain the process. Adii describes his value system: How can I wake up every single morning and spend my time manifesting the truest expression and version of myself in anything that I do? An ideal day for Adii is "being present". Adii explains that the main reason he went back into entrepreneurship was he wanted to create again, he was enthusiastic about building a team, and those are his higher values for now. While admitting that his kids have a great life especially from the financial perspective, he is concerned not to bring up spoilt kids who can't be individuals with their purpose. Adii describes the strategies he uses to help build his kids to become individuals with a backbone: Transparency, which involves letting the kids be fully aware and involved with the ongoings in the family office, as well as the concept of Gratitude. The family office should always prioritize business ideas from the trustees. Expounding on the concept of 'Paying a Life Dividend': A business that's not just financially profitable but profits your whole life. Adi discusses the relevance of having assets that mean more than their financial value to the family, which is selected by stress testing, effective communication, and evolution. It is important to sequence things, rather than doing two things at once and have none getting your full attention. Every single minute of our day, we only have finite attention, time, and energy to do anything, so the decision to anything is costing us life. Unfortunately, mainstream media has created a narrow definition of success that serves barely 0.1% of the world, but there is a much wider and diverse definition of success for the rest of us, and it is our responsibility to define it. To Adii's Children: Do the work, continue learning towards discovering who you are, and figure out how to manifest that in most of the things you do in life. Episode Timeline: [00:49] About today's guest, Adii Pienaar, describing his origin story and path to First-generation wealth. [08:26] What does a family office mean to you, and how did you know what to do when you set out to do this for the first time? [11:19] How have you and your understanding of value systems evolved? [13:59] Adii describes his picture of an ideal day. [16:13] His motivation for diving into entrepreneurship for the 3rd time. [19:20] How have you explored this concept of multi-generational wealth or the family office? [29:50] 'Paying a Life Dividend' [37:34] Adii recounts a significant failure with the lessons learned. [40:15] About Adii's book: "Life Profitability" [49:12] What was the motivation for writing and publishing a book? [53:00] How else do you document your history within your family for the next generation to discover? [54:40] Adii's letter to his children. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Adii Pienaar.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:Adii Pienaar - Personal Website — Adii Pienaar is the founder of three technology companies, two of which he’s exited so far to create first generation wealth for his familyCM Commerce: Email automation for ecommerce stores — Adii Pienaar is the founder of ConversioWooCommerce - Sell Online With The eCommerce Platform for WordPress — Adii was co-founder of WooThemes/WooCommerceLife Profitability: The New Measure of Entrepreneurial Success by Adii Pienaar | Amazon — In Life Profitability, Adii provides you with a new perspective for becoming self-aware, recognising your values, and understanding your impact

Mitzi Perdue is the daughter of one family business titan (her father founded the Sheraton Hotel Chain) and the widow of another, (her late husband was the family business poultry magnate, Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California. Mitzi likes nothing better than to share insider tips for successful family businesses. Her family of origin (the one that started the Sheraton Hotels) began with the family business, Henderson Estate Company, in 1840, and her Perdue family started in 1920 in the poultry business. These two families have a combined tradition of 276 years of staying together as a family. Standout Quotes: "The odds of a family business lasting 100 years are 1 in 1000" - [Mitzi] "The families who put a lot of effort into designing their cultures are the ones that survive, the ones that let things happen as they may, that rarely supports keeping the family business together over the generations" - [Mitzi] "70% of family businesses won't make it to the next generation, so if you want your family to last, put a lot of intentionality into letting the family members know from the youngest age that they're part of something bigger than themselves" - [Mitzi] "The biggest reason families don't last is family quarrels" - [Mitzi] "So a big piece of advice I'd have for every family is, deal with the problems, get them out, come to a resolution but don't go the press, don't go to adversarial lawyers" - [Mitzi] "We're measured by what you can give, not what you can get" - [Mitzi] "I don't think you can be happy if you're not part of something bigger than yourself... If you want to be happy, think what you can do for somebody else, if you really want to be miserable, think what's owed to you" - [Mitzi] "In general, your family will be better functioning the more it knows its stories" - [Mitzi] "If your children turn out right, nothing else matters, if your children turn out wrong, nothing else matters" - [Mitzi] Key Takeaways: Mitzi is a part of two multi-generational business families, each of which has lasted for over 100years and over 5 generations. Mitzi explains that a lot of conscious effort was put into strengthening the families over the years, noting in particular one of the strategies being the "Service to the Family" award. Every single family that exists has a culture, but is it a culture that came about by accident or by design? It is critical to be intentional about designing and maintaining family culture as it plays a major role in the success of a family business over generations, rather than just allowing things to happen as they may. People need a lot of guidance to be steered away from selfishness, and that takes intentionality. Separating Ownership and Control helps create a perspective of the family as an entity bigger than any one person, and consequently gives a better understanding of the role of stewardship. Mitzi explains her innovative idea to inculcate the family values in family members, right from childhood. Noting the importance of knowing how to handle family quarrels, Mitzi strongly emphasizes avoiding the press or lawyers but rather encourages outspokenness within the family. Three ways that a family can intentionally stay together: Family Newsletters, Family Reunions, and Philanthropy. Mitzi highlights the positive effects of connecting with both present and past members of the family on the well-being, physically and mentally, of the family. As a personal preference, Mitzi would rather use books as a means to archive family history compared to other forms of technology, as it may be difficult to access the archive in the future if the technology used to archive it is outdated by that time. Mitzi recommends entering a new family with humility, observing them, noting what gains you points and what doesn't, also pointing out that while the two families had very different values, the values were very compatible. Mitzi's letter to her kids: Be generous, be kind, be honest, work hard but be a good steward. Episode Timeline: [00:49] Introducing Mitzi Perdue, to discuss actionable advice on how her family has maintained their businesses and family dynamics for generations. [02:28] Mitzi shares the origin stories of both business families she is a part of. [04:46] What generation are you in each of these families and what generation are these families up to? [10:08] Every family has a culture. [13:22] About the family values and how they are inculcated with other members of the family. [25:53]How big was the business when it went from family control to external control? [34:02] How has the endowment grown to keep up with the growing size of the family? [35:34] The 'What It Means To Be Us' book. [38:35] Do you have a process or value system around how you keep records for the family? [52:50] How was the process of assimilating two different value systems upon joining another family and what differences did you observe? [57:15] Is there a constitution for the family? [01:00:43] A letter from Mitzi to her children. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Mitzi Perdue.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:Mitzi Perdue — Mitzi Perdue is a Businesswoman, speaker, writer, Founder of the Sheraton Hotel chainInternational Hotels & Resorts | Sheraton Hotels & Resorts — Mitzi perdue's father founded the Sheraton Hotel ChainHow to Communicate Values to Children — Book by Mitzi PerdueHow to Make Your Family Business Last — Book by Mitzi PerdueHow to Keep Your Family Connected: Templates, Techniques and Resources for Strengthening Your Legacy - Book by Mitzi PerdueHome Page | PERDUE® ChickenFrank Perdue - WikipediaTOUGH MAN, TENDER CHICKEN: Business and Life Lessons From Frank Perdue - Book by Mitzi Perdue — This is the story of how Frank Perdue built his chicken and grain company from a father and son operation to an international company that today employs 19,000 people and sells to more than 100 countries.

Ginny Gilder, is an American former competitive rower and Olympic silver medalist. As a second generation entrepreneur, Ginny’s day job is running her family investment office, Gilder Office for Growth but her heart leads her to focus on expanding access to opportunity in the realms of sports and education, especially for youth. A serial social enterprise entrepreneur, co-owner of the WNBA Seattle Storm, and a writer, Ginny continues to look for ways to expand the footprint of women's professional sports in the U.S. Standout Quotes: "The way that people really become good at something and grow wealth is by concentration" - [Ginny] "There are gifts hidden in tough times" - [Ginny] "You should keep doing something only as long as you're learning and growing" - [Ginny] "For any family that's lucky enough to have financial wealth you've got to think about whether you are going to insist that people get along, and at what price" - [Ginny] "The biggest thing that's probably shifted is recognizing what we really want, which is adult relationships with our adult children" - [Ginny] "If you want to see change in the world, well, you've got to invest, cos nothing's going to happen if you're not going to invest" - [Ginny] "What's really most important to most people is Human Connection... and if you really want to be connected, you've got to deal with the stuff that's the toughest" - [Ginny] Key Takeaways: After making many mistakes starting a nonprofit, Ginny set up a business that helps start-up nonprofits avoid similar mistakes and achieve their goals. Early in her career, she had goals that were not related to working in the family business. Having a financial cushion had benefits, like the freedom to work without being tied to a focus on amassing wealth, although it came with less attention from their father. When the time came for a transition of the family business, she knew she had to step up to the responsibility placed on her despite her lack of knowledge or passion in the family business. There has to be a lot of very direct conversations if you want to be in business with your siblings. Ginny clearly explains that she has no passion for the investment business, but got involved, for the love of family, the financial security, and the business relationships that come with it. Having an investment office rather than a family office with bells and whistles was geared at equipping her kids to be independent, self-sufficient, and capable human beings. Honesty has been hugely instrumental in navigating the family dynamics in Ginny's family, she also had to understand the importance of having adult relationships with her adult children. When things go wrong, that's when you have to figure it out and it's also when you find out the relationships that are solid. The importance of dealing with difficult family relationships: it's so easy when life is good to think everything is fine but as soon as life gets hard if you haven't dealt with challenges and learned how to disagree and resolve differences, you're not going to make it through the hardest parts of life. Episode Timeline: [00:49] Meet Ginny Gilder; sharing her personal and professional background. [01:34] Her family history and the origin of the family business [08:20] How Ginny got into the investment business. [22:50] What was your father's position when you started your nonprofit organization? [29:00] Ginny describes how the family dynamics affected the transition of the business to her generation. [30:42] What would you say that you've learned from the separation of roles between family and business? [33:22] What is the family business structure going forward? [40:05] How do you differentiate your investment office from a family office? [41:20] About Gilder Office for Growth [48:56] How do you navigate through your family dynamics in the world of wealth? [53:15] Tell us about what you're most passionate about in terms of one of the businesses that you own today. [01:00:40] Ginny's letter to her kids *For more episodes go to * BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Ginny Gilder.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links: Seattle Storm — Ginny Gilder is the co-owner of the WNBA Seattle StormGilder Office For Growth — Ginny Gilder is the CEO & Founder of Gilder Office for Growth

Khalid Muhmood is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education. He has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education. Khalid and Arabella see themselves as the founding generation of their family enterprise and intend to never sell their Dragonfly Education hold co. They’re actively involving their young children in business conversations and laying the foundation for generational wealth, legacy and impact. Standout Quotes: "What's your biggest headache?" "Learning from successful family businesses; so many of them do not load up on debt" - [Khalid] "The future of education is blended, that means you've got to incorporate online with offline" - [Khalid] "Sophisticated multi-generational families.. have taken generations to figure out that they need to separate the Governance from the Operations, and that the family needs to be excellent stewards and owners first before they can consider playing an active role in Operations" - [Mike] "A well-run family business is difficult to beat, especially during downtimes" - [Khalid] "Why trade anything in, when we've found purpose?" - [Khalid] "If you’re building any business, I'd say that 'Focus' is the thing that's often lacking, especially if the entrepreneur at the beginning thinks they have to say yes to everything" - [Khalid] "Look for the good in life... because it really helps you enjoy the journey" - [Khalid] Key Takeaways: If you want to be truly in control of your journey in a business, you need to be the owner, not the manager. At the very beginning, the vision was simply to get the business to survive. It's only when you move from surviving to thriving that you can ask, "what do you want to do?" When asked "what is your biggest headache?" at an event, many of the entrepreneurs answered "My father". If you're not happy with 60000 pounds per year, then any more money might not change anything. Khalid describes the challenges of Covid-19 as a learning period for the business as a whole. Finding a way to create balance and incorporate online with offline learning is pivotal, that will be the future for the family business. Khalid and his wife, Arabella involve their kids as much as possible in the family business even at the early ages of 8 and 10, with some tests to determine their level of interest and perception of the business as a whole. In the future, the key role for the kids is going to be "Good Owners" The stewardship role is critical One of the tips to help foster togetherness among children is that if one of them does something wrong, punish them all. Other points to note is to never elevate one sibling above the other and to always leave them to sort out their arguments without being the judge. Khalid shares that the preferred investments taken by DragonFly are those in which a controlling stake can be bought. A major mistake that was made at some point was accepting an offer from Nokia when it should have been turned down because it was distracting from the core competency of the business. Khalid shares that his source of knowledge includes mentors, peer to peer learning, and mistakes. From Khalid to his kids: Look for the good in life because it really helps you enjoy the journey. Episode Timeline: [00:49] About Khalid Muhmood and the inspiration for starting the business of education [06:01] Khalid explains some of the reasons behind the choice of Vietnam as a location for starting the business [08:59] What was the vision at the time of starting the business [15:03] The new vision for Dragonfly Education Group [19:41] How did the business hold up in this period of Covid19, do you have an interest in online learning? [24:34] Is there a vision of bringing your kids into the business if they're interested? [31:20] Do you have any other family structures aside from stewarding Dragonfly as the main asset? [32:53] Khalid shares some of the values, principles, and parenting approaches to raise well-rounded children amidst wealth. [36:37] Where does this family business DNA come from? [41:17] Where do you think you'll make the next operational or financial investment? [43:01] One of the major mistakes made in running the business: Losing focus [47:50] A letter from Khalid to his kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Khalid Muhmood.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:Khalid Muhmood — Khalid is the Founder and Investor in education with a passion for delivering education that develops global citizens and fosters prosperity.Trung Tâm Anh Ngữ Apollo | Chương Trình Học Tiếng Anh Với 100% Giáo Viên Nước Ngoài — Khalid has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education. Dragonfly Education Group — Khalid is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education.

Ashok Melwani started his career as a teenager, working in his family’s fashion retail stores during the school holidays. In 1982, he joined the business full-time, working his way up from brand manager to an executive director of the 4th generation Indian family business. He's a seasoned entrepreneur with decades of experience in retail, food & beverage and distribution, and now an executive coach. Ashok is a guide to the road less travelled. His story is a fascinating journey of a struggle to leave the family business and ultimately forge his own path. Standout Quotes: "My most disliked few words, 'You should know what to do'." - [Ashok] "If the CEO of a business is not passionate about a business, he has no business to be the CEO" - [Ashok] "If the family business is the only thing on your resume, it's not very worthwhile" - [Ashok] "Crowd brings crowd to a restaurant" - [Ashok] "Two things I and my wife can never give you as parents, we cannot give you resilience, it only comes from hardship... We cannot give you self esteem, it comes only from achieving your own goals and making a name for yourself" - [Ashok] "Everybody has a price at which they might do something which is borderline unethical, and the price depends a lot on your socio-emotional background" - [Ashok] "When one door closes, another door opens.. in order for that to be true, you have to do your part which is don't hang around too long when the door closes" - [Ashok] Key Takeaways: Ashok shares that although he wasn't particularly excited to work in the family business, the incentives and knowledge gained made it a perfect introduction to the retail business. If the family business is the only thing on your resume, it's not very worthwhile, even if you were the MD. Ashok discloses that following the impact of the Asian financial crisis on his transition out of the family business, he had fallen into depression for close to a year. If you leave a family business, you don't want to have some small share in the business and start second-guessing whoever is left behind. Although he had a clean exit, there were effects on the family dynamics at the time, as some family members didn't understand why. Despite the many setbacks, looking back, there is no doubt that leaving the family business was the right step to take for Ashok. I have no respect for trust fund kids. You have a life outside and beyond the business, a lot of entrepreneurs are consumed by their business even when they should be spending time with family. Ashok admits that based on his experience with his family business, he was not encouraged to start another one involving his children After interacting with younger family business executive owners, a common notable point was that they were given time to work outside the family business before coming back. From Ashok to his kids: when one door closes, another door opens, don't wait around too long afterward. Episode Timeline: [00:49] Introducing "Ashok Melwani" [01:56] Ashok narrates how he joined the family business [02:50] What sort of products was the business offering? [13:03] Your career with the family business, where did it reach, and what happened next? [31:32] Ashok explains he had a clean exit from the family business. [34:00] Would you say that leaving the family was the right decision for you? [35:04] How is the family business going today? [36:31] Did you ever try and nurture your children to work with you and create another family business? [38:28] Ashok's opinion on children inheriting wealth [40:39] A notable experience that helped shape his journey. [44:00] What advice would you give to a driven entrepreneur who aspires to be the founding generation of a multi-generational family business? [44:57] What's your take on generational businesses? [46:46] My next stage in life involves venturing into Leadership Coaching [47:35] Ashok's letter to his children For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Ashok Melwani.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:SUMIDA CORPORATION — Melwani has been an Outside Director of Sumida Corp since April 2003INSAS BERHAD - Strength in Depth and Diversity — Ashok Melwani served as a Non-Executive Director of Insas Bhd since November 29, 2004

George Isaac’s grandfather founded the first Isaac family businesses in 1899 in Bryan, Ohio, beginning a long history of serial entrepreneurship and the subsequent creation of several successful enterprises. A lot has changed since then, but the Isaac Group continues to thrive, now under board oversight and management by its third and fourth generation. George grew up as a child of family business owners and has run several Isaac multigenerational family businesses as a CEO and board member. More recently, he is the founder and president of GAI Capital Ltd., a family business consulting firm and the author of a newly released book titled Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts Standout Quotes: "I realized that some of the things I did in running our family business and what a lot of people are doing today are not best practices" "I used to think that the goal was to get everybody in the family to stay in the family business and figure out a way to make them live happily ever after... My goal now is to understand the real needs of each family member and see if they fit within what the family business is going to be about" "The majority can rule and figure out what they want to do but you need to deal with the minority issues... so that you can satisfy their needs" "The most important to me of the whole thing is just being certain that your ownership group is aligned" "There are times when you should sell your family business" "Shareholder returns are much different than business returns... Figuring out how you provide real-life shareholder returns is an important step that many of us don't recognize" "Money is not everything by any means" Key Takeaways: Although George had gotten involved in the family business at a very early age and had planned to join fully after school, he decided to go out and get outside experience first. George notes that the Authoritarian leadership style of his father, although a good leader, made for a rather weak management team generally. The 2 conceptual parts to George's 9-step succession planning roadmap: Family Transition Planning and Business Transition Planning. George explains that formerly his goal would be to make everyone stay in the family business and be happy, but now he tries to understand the individual needs of each family member, to see if they fit into the family business as a whole. It is necessary to revisit the topic of people's needs and be sure the business is aligned with taking care of these needs because those needs change over time. The 2 Basic components of selling the family business: the financial side and the personal side. Headwinds that perpetuate a multi-generational family wealth: FIST ( Family units, Inflation, Spending rate, Taxes) George shares some insight from the book "Everybody matters", describing how attention to the little things can go a long way in making workers satisfied Think about what you want your legacy to be; are you aligning yourself with that legacy? Be Curious and Have Empathy Episode Timeline: [00:49] A short overview of George's background and the Isaac family business [05:12] George is the 3rd generation of the family business [05:28] What sort of product lines is the business in? [06:22] How did your story evolve into the family advisory work? [09:44] About the A 9-step succession planning roadmap from George's book [17:16] George highlights implications to consider in selling a family business [23:37] The Family Business Wealth Evaporation Trap [33:05] F.I.S.T [36:51] Is it possible to maintain wealth at a reasonable level even though the family grows at a compound rate as the generations go on? [39:47] George shares his opinion about children inheriting wealth. [41:51] George recommends the book "Everybody Matters" by Bob Chapman [44:31] From George to his kids *For more episodes go to * BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: George Isaac.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:George Isaac - Management Consulting, Family Business Consulting, Corporate Board Membership — George Isaac is the founder and president of GAI Capital Ltd.Book: Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts - George A. Isaac — **5-star "Amazon's #1 New Release" Rated Book** Whether you are an experienced family business or family office executive, board member, owner, or next-generation family member, George Isaac has written the definitive handbook on the challenges of managing a multi-generational family enterprise.Ten Critical Initiatives for Family Business Longevity - Tharawat Magazine — Your family business is your best vehicle for generating income, preserving wealth and serving the needs of your stakeholders. Yet, sustaining family enterprises for the next generation is a continuous challenge, with the majority not surviving.Family Business Pandemic Cash Flow Survival Strategies - Family Business Magazine

Gautam Goel is the fourth generation Managing Director of Dhampur International Pte Ltd, the parent company and Dhampur International Pte Ltd. Founded in India in 1933 by Gautam’s great grandfather, he along with fellow members of the current generation continue to steward the family and business legacy today. Listen on to hear how the business was intentionally split off from a wider family group to resolve in-fighting, how they’ve professionalised the business and what challenges they face when contemplating the 5th generation’s involvement. Standout Quotes: My dad used to tell me "if you want to join the work, you have to make sure you are capable, I won't yield an inch if I don't think you are capable and you have to fight for your position, I am not going to give it to you" - [Gautam Goel] "I don't believe in the saying Look before you leap because very often you don't leap, only when you leap do you realize what your capabilities are" - [Gautam Goel] "Do unto others as you would have them do unto you" - [Gautam Goel] "Don't be fixated on results, put in your best, do your effort and leave the results" - [Gautam Goel] Key Takeaways: Gautam encouraged his daughters to go to college, explaining that going straight to work makes you grow up fast and there is no need to rush the experience when you can enjoy it. When trying different things, it is important not to move too fast from one to another because you might not give each your full attention Business can't be a democracy, one person has to make the decisions Gautam explains that to be in this industry in India, you cannot solely be profit-oriented, you need to have a mindset to do good for your community. Not encouraging recklessness, but as long as you have common sense, it's good to be adventurous and make some mistakes to figure things out. Don't be fixated on results, results are not in your control, your effort is Episode Timeline: [00:49] About Gautam Goel and the history of his family business. [14:31] How did you end up joining the family business? [20:25] Gautam describes the natural process of his succession noting how this affects decision making in the business [24:55] What does the business look like today, from where it started? [34:36] Is there a next-generation that is interested in joining the family business, and what challenges do you foresee? [40:36] Integrating the idea of outside leadership in the family business [42:26] Are there structures or plans in place regarding family governance? [43:48] Gautam's thoughts on children inheriting wealth [45:50] Are you taking any steps to document the history of the family business? [46:25] Gautam's letter to his kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Gautam Goel.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:Welcome To Dhampur Sugar Mills Ltd — Gautam Goel is the fourth generation Managing Director of Dhampur International Pte. Ltd

It's not often we get to hear from a 7th generation American manufacturing family with a company that dates back to 1728 and in their family since 1793. The Hollingsworth & Vose Company is a technical manufacturer with a rich history of R&D and innovation. Here to share their story with us are Val & Annie Hollingsworth, first cousins and both members of the 6th generation, stewarding this incredible and impactful company to the next generation. Val Hollingsworth has served as President of Hollingsworth & Vose Company since January 1997, and added the title of Chief Executive Officer in January 1998. He began in operations, working as a Shift Supervisor and as a Production Manager, then held a series of manufacturing, sales, and marketing positions. He served as Mill Manager of our West Groton Mill and General Manager of the Battery Separator Business Unit. While the majority of his career has been at H&V, he also spent two years in the Investment Banking Division at Lehman Brothers in New York. Val earned a BA from the University of Pennsylvania, and an MBA from Dartmouth's Tuck School of Business. Annie Hollingsworth was elected to the H&V Board of Directors in 1997. She currently serves on the Nominating & Governance and the Executive Compensation committees of the Board. Prior to joining the Board, Annie worked at H&V starting in 1984. She held several positions in Sales and Marketing including Product Manager, Battery Separator and Marketing Manager, Nonwovens. She was instrumental in getting H&V into the battery separator business. Annie’s father, Mark was the CEO of H&V from 1963 – 1983. Standout Quotes: "Our company's history has been one of finding new and more technically oriented products in order to replace products that are maturing and obsolescing… Because the family had so much invested in this, we couldn't take the risk of being obsolete" - [Val Hollingsworth] "If you're trying to optimize profitability, which we all are, how do you start to invest in things that may cannibalize an already existing product?" - [Val Hollingsworth] "If we could be a good company.... that would attract good people, those good people would do good work" - [Val Hollingsworth] "Ultimately, you have to trust other people to become the real experts and get in-depth, so it's more a matter of helping find and develop the right people and giving them what they need" - [Val Hollingsworth] "There has always been an unwritten ethic of having to go the extra mile if you're from the family and you're in the business" - [Val Hollingsworth] "If the family can contribute in helping set the right tone, and helping nurture the sense of purpose and values that are relevant, both for the family and ultimately for the company… that's invaluable in creating the atmosphere and dynamic that attracts good people" - [Val Hollingsworth] "Be a good steward, Don't take it for granted" - [Val Hollingsworth] Key Takeaways: Annie highlights that the company's resilience over the decades comes from a strong focus on customer relationships as well as Research and Development. Val notes a conscious intent in the company from the beginning to continually reinvest, describing some of the intricate planning involved in the company's production line. The business tries to keep up with a mantra of having the best product in the market, a better one in customer evaluation, and an even better one in the labs. Val also describes the role of the workers in building the company's resilience, stressing the importance of having and keeping good people. Trusting the employees plays a vital role in creating a balance for Annie and Val, between having knowledge of the technical expertise required in the family business and the job of stewardship. Unlike Annie's Father who had to step up to the needs of the company without having much of a choice, Val and Annie were not under any pressure and joined purely out of interest. The challenge for the older generation (6th generation) is to be open to change, to understand the important things that can make the company relevant to the next generation, and to know how to communicate with them. Annie shares that she would encourage her kids to pursue their passion, as there are many ways to be a good family member or stockholder, but to ensure they continue to honor the company. Val points out that with good stewardship, the family business could give meaningful contribution to the world. Episode Timeline: [00:49] Meet Val and Annie Hollingsworth, as they share the early origins of their family business dating back to the late 1700s [07:17] What is it about this company that has allowed it to remain so resilient for so many years? [14:55] Val points out that the business also has multiple generations of employees [16:42] Can you share some of the more notable products that the company is known for manufacturing today? [22:14] Annie and Val each highlight events leading up to their entrance into the company and the journey so far. [29:35] How do you balance understanding the depth of the technical expertise in the business with your stewardship role as a family member? [33:33] Some of the strategies employed in keeping all the various stakeholders up to date with happenings in the business [39:04] The business has an associate development program that exposes workers to the different areas of the business so that they can make a good match. [43:38] Val describes the role of non-family members in the success of the overall business. [46:30] How does the governance side of the family business work? [54:24] Does the family do anything to ensure that the business's history is documented over time? [55:50] The future of Hollingsworth and Vose. [59:44] Annie's letter to her children [01:00:40] Val's letter to his children For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guests: Annie Hollingsworth and Val Hollingsworth.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>Links:H&V - Hollingsworth & Vose — Hollingsworth & Vose Company (H&V) is a global manufacturer of nonwoven materials and engineered papers used in filtration, energy, and industrial applications. The firm is a privately held business founded in 1843; its headquarters are in East Walpole, Massachusetts, USA.