ForConstructionPros.com

All family-owned companies eventually face an impor tant decision: To continue as a family business, in which case control, accountability, and responsibility remain within the family; or to transition from a family business to a corporate structure in which family members relinquish control and employees assume a greater degree of accountability and responsibility.

A few years ago the family owners of Roberts Traffic Marking, Hollywood, FL, recognized they were nearing this crossroads. Owners Linda and Don Levine were ready to transition out; their daughter, Lisa Birchfield, was transitioning in; and Lisa's husband, Ari, also wanted out. That meant that all responsibility and accountability would fall to Lisa Birchfield, and she and Linda Levine, current treasurer, knew that wasn't going to work.

"One person cannot do it all, and even a husband and wife can only accomplish what each can do in a day," Birchfield says. "When I became involved 12 years ago I knew that this would not be healthy or a profitable way to support additional employees including my own family."

So Roberts Traffic Marking (RTM) decided to make the move from family owned business to corporation. Birchfield, who in January became president and 100% owner of the company, and Levine have spent the last few years taking the steps necessary to remove family members, including Birchfield, from the day-to-day business - while maintaining the relationships and job quality that has made the company one of the dominant pavement marking contractors in south Florida.

"You can't transfer experience"
One of the most difficult aspects of running a family business is that the knowledge of the business, and the expertise of the company, all reside within the family unit itself. As family members begin transitioning out, that knowledge must be passed along or the company will fail. Too often, as in the case of RTM and Birchfield, the knowledge becomes more and more centralized.