All in the family: family-owned S.E. Neeham jewelers thriving into sixth generation.

• Author: Kinder, Peri
• Position: Lessons Learned

It's survived two world wars, the Great Depression and several recessions, including the most recent, but after 115 years in business, the family-owned I.E. Needham Jewelers in Logan is still going strong.

Started in the late 1800s by Lulu Holt Needham, this jewelry store is now in its fourth generation of leadership, gearing up for generations live and six. So how do family businesses stay functional through successions, family turmoil and money problems? S. Eugene Needham IV, the current owner and president of S.E. Needham Jewelers, gives his advice for family-owned business success.

Determining Succession

When it comes to handing down a family business, Needham says it's essential to create a plan and put it in writing. The plan should not only cover succession but should include the goals and visions of the company how to execute the plan and how to select key leaders to ensure success in the future.

At 42, Needham has been running the family business since his father gave him the store keys at the age of 21. His father had no qualms about stepping down so his son could take over.

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For the Needham family, succession hasn't yet been an issue, since Needham's grandfather was an only child and Needhams father was the only son (his sister wasn't interested in running the family business). But now, Needham has eight sons and one daughter, and line of succession will need to be discussed and clarified. Needham's brother, Joseph, also works in the jewelry store as the head designer and goldsmith, but it has already been determined that Needham's children will be the ones to carry on the business.

"My oldest sons, Sylvan, age 16 and J.D., age 14, have both expressed an interest in the business," Needham says. "Any of my kids could be involved, so we'll need to be very clear when it comes time to make the change. But that's probably still a decade away. I'll wait and see who expresses the most interest."

Investing for the Future

One of the biggest downfalls to a family business, according to Needham, is going into a venture undercapitalized. Family members mortgage their homes, sell off heirlooms or squander savings to start a business they hope to pass down to future generations.

"If they don't have the right capital in place, they should not go into business," he says. "The risk is way too high and the loss is just way too great. It can damage relationships; it can hurt the very family unit they think they're trying to...