CSUN’s Family Business Center Hosts Event to Re-Launch Program

When a mixer took place recently for California State University Northridge’s Family Business Center its short-term goal was to get its name out to the public and those businesses that could benefit from its services. The long-term goal is for the center to help those family businesses in the San Fernando Valley stay in business. That is, if the unique challenges of relatives working together don’t result in an end to the business. “Some don’t want to stay in business,” said center director David Russell. “Some want to grow it and then sell.” More than 100 people attended the center’s event, which took place Sept. 6 at the Courtyard by Marriott in Sherman Oaks. Many in attendance had not even been aware that the family center even existed and were glad for the exposure. “I’m looking forward to their forums,” said Rachel Cohen, owner of H & R; Precision, a Canoga Park machining company. The center opened in 2000 but at that time lacked resources and didn’t get the attention it deserved, said Russell, who has been director since April 2003. Earlier this year, the center’s staff and advisory board developed a new strategy to market the center better with the Sept. 6 event being the kickoff, Russell said. Noma Kaz, who operates Lifeline Companion Services, a training and supervision firm for in-home caregivers, with her sister-in-law, attended the event to talk with other business owners about how they work with their family members. She was also interested in what the center’s experts recommend, said Kaz, whose background is in banking. “You don’t get to fire your employees ([in a family business),” Kaz said. “You have to work out your issues differently.” While family businesses confront the same issues as other businesses, such as payroll, taxes, insurance costs, and regulations, they also have a unique set of challenges brought by the family relationship. “Blood makes it more complicated,” Russell said. The center’s monthly meetings feature experts discussing topics including succession planning, bringing outsiders into the family business, appropriate exit strategies, and what if the children don’t want to go into the business. Elaine Silverman and daughter Michelle have worked together for four years in the medical and dental insurance plan company Elaine Silverman started. There has been no problem at all in the two of them working together, the mother said. Before the event, they hadn’t known about the family business center and what it had to offer. “And we live within walking distance of CSUN,” Elaine Silverman said. Advisory Board Chairman Barry Gump, who worked side-by-side with his father for over 30 years in the family’s sanitation company, said the center is important because it can expose family businesses to resources that will help them get through from generation to generation. “So many don’t make it past the second or third generation,” Gump said.