An aspect of family business relationships that is not often discussed are the long term business relationships established by one generation that sometimes change or end when another generation takes over. In some ways these relationships can feel very much like employee relationships. The connection is sometimes with a family member or aligned with a certain businesses or leadership philosophy. When the generational leadership change takes place, that long term business relationship may need to change as well.

I recently ended one of the long term business relationships. It was very difficult for me to do. In reality our business had outgrown the relationship purely from a business perspective. This particular relationship was special because our businesses started right about the same time. We were probably working together before either business really deserved it. Over the years we worked closely, faced challenges and maintained a close collaboration. When it became apparent the right decision was to end our business relationship, it felt more like ending the employment of a fellow family member. I called the president of the other company personally to inform him of our decision. He was gracious, as always, and indicated that while he did not like the decision, he understood. This may be surprising, but making that call ranks up there as one of the tougher things I’ve done since assuming the leadership role of our family business.