Dave Specht took on the challenge of providing consultation and guidance for family businesses.  His work is unique from other similar services because he focuses on the issues and challenges for each family and guides them towards the best route for each person in the business.

“You’re seeing a huge transition of not only wealth but these businesses. Business owners are trying to figure out what they’re going to do with them,” Specht said.  “There aren’t really that many guides to help develop family leaders.  Often times, family members will go back into businesses. They know they want to go back and there’s no path to ownership. They don’t know if they’ll have to buy into the business or if they’ll have to buy over time.

“What we try to do is coach them to have the questions they need to ask before they go back so they’re taking full ownership of their own career development whether they go to their family business or not.”

Specht, a native of San Diego, worked for the largest independent broker dealer in the country and during his last year at the

Sid Dillon car dealership in Fremont, Neb. and Union Bank in Lincoln, Neb. are both successful family-owned businesses.

firm and after several years with that company, he ended up in Lincoln. Specht began his own family consultation firm and established a family business management course at the University of Nebraska-Lincoln.

Once the University received funding for the course, he saw a steady successful enrollment on the first day of the second semester. Demand for the course resulted in it being offering for another two semesters.

His course is structured as an application-based class where students learn to navigate their own futures with family businesses.  Every student comes from a family owned business background and they learned from speakers from prominent family companies in the region, such as Sid Dillon in Fremont, Neb. and Union Bank in Lincoln.  Through these discussions, the younger generation was able to connect with current working family businesses and gain mentors in the business world.

“It’s been amazing how business leaders have taken an interest in their development,” Specht said. “The student’s have been willing to ask and find the answers. I would say it’s unique because there’s not another class in the country that accesses the type of business leaders and allows students to interact with them in an intimate basis and ask them direct questions about their own development.”

“I think the University of Nebraska has an opportunity to be a national leader in family business because we’re in the middle of the country and because Nebraska is dominated by family businesses,” he said.

“I think the country would naturally look to the Midwest for a leader in family business.”

He said all family businesses must be aware of “three C’s” when it comes to handing down the business to the next generation: communication, contingency plans and cash flow.

First, communication is essential. Communication from the senior generation to younger generation about the expectations for the business as well as the younger generation communicating with the senior generation about their own expectations is key for success.

“The gap in communication is probably the biggest thing to overcome,” he said.

Speakers from Sid Dillon and Union Bank spoke to Dave Specht's course on family business planning at the University of Nebraska-Lincoln.

He also said contingency plans are vital in preparing for the worst or other plausible scenarios. The next generation needs to know the answers to these questions.

Cash flow is also important because it determines where all the money is going and where it will continue to go as the senior generation begins retirement.  These three areas are part of the focus of Specht’s work with family businesses and students in the University’s class.

Specht said in recent years, the demand for family businesses are increasing.

“With the economy, I think you’re seeing more considering going back to the family business earlier because there aren’t always as many opportunities.”

Specht helps these families focus on their own personal goals and helps them gain an understanding between the generations as they move forward with the business.

“I think without the focus, it makes the job search more difficult.”

Those interested in working with Specht for family business consultation can visit his website for more information.

Check out this video of a panel Dave led at the Nebraska Summit on Entrepreneurship