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Don’t Put the TITLE in Entitlement!

“Executive Manager,” “Director of the Custodial Arts,” “Chief Comradery Officer,” “General Associate Vice President” – Sweet titles, but what do they mean? Nothing without a job description. Unfortunately, a common family business mistake is endowing an important sounding title on someone in order to justify a paycheck that isn’t being earned.

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You've Sold Your Business, Now What?

Recently I was invited to speak to a group of successful business owners about the various aspects of succession planning (what I refer to as the Succession Matrix). The Succession Matrix consists of ten interdependent factors that business owners must successfully address to improve the odds that their business will successfully make the transition to and through the next generation of owners and managers. Addressing these factors is important regardless of whether you plan to sell your business or plan to keep it in the family. Unfortunately, many franchisees and business owners are so busy “working IN their business” that they do not invest the time to “work ON their business” to consider their exit options.

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Successor Development Checklist

One of the biggest burdens weighing upon family business leaders is whether or not their successors will be ready and capable leaders for the next generation. No matter how intelligent, educated, progressive or firm, it is likely there will be some doubt and even more likely some challenges as you work towards preparing the next generation to lead. After many years of working with families, management teams and their business successors, we have put together a Successor Development Checklist to help clarify which factors are most important in knowing whether or not you have positioned your successor and team for the next generation.

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Franchisee Succession Fumble: Don't Forget the Franchise Agreement

Those of you who are franchisees pay close attention! Have you developed a succession plan for your business? If so, I commend you as many of your peers talk about having a succession plan, but have yet to develop formal documentation that reflects their goals and objectives. Now let me ask you another question. Does your succession plan consider requirements in your franchise agreement such as ownership transfers or successor qualifications? If not, I suggest you shake the dust off of the franchise agreement and find the specific paragraphs that relate to successor nominees, ownership transfers, death, disability etc. Many times the franchise agreement is overlooked or in some cases ignored when franchisees develop their succession plans. This could result in a violation of your franchise agreement possibly resulting in significant consequences such as the derailment of your succession plan!

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As Seen in Multi-Unit Franchisee Report - Have It All Done?: There is a Difference Between Continuity Planning and Succession Planning

Over the years we have encountered hundreds of successful business owners who have made the statement "I have it all done," as they describe how well they have planned and documented their business succession plan. Unfortunately, in most cases these business owners were referring to the work they have done to implement their wills, trusts, buy/sell agreements, and life insurance, which we would constitute as business continuity planning. You may be asking yourself, what is the difference?

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Preparing your Business to Weather the Succession Storm

Hurricane season is upon us and hopefully you have taken the necessary precautions in the event Mother Nature unleashes the power and fury of a hurricane on Central Florida. Forecasting the weather is not a perfect science, however; when it comes to identifying and tracking hurricanes, weather forecasters do a remarkable job. Thanks to news outlets, we have the benefit of advance warning. We are given insight into the strength and magnitude of the storm and we even have a close projection as to the hour the hurricane will pass over our area. Yet many people ignore the advance warning, neglect to prepare and develop contingency plans. Business succession planning is similar to a hurricane in that business owners know succession planning is inevitable, know they need to develop a plan, more often than not have adequate time to prepare yet often procrastinate and ignore the implications and consequences associated with not having a sound plan. The result is a business catastrophe where many are shocked, devastated and in some cases have to pick up the pieces, salvage what’s left and start all over again.

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As Seen On Automotive Buy Sell Report- Why do I need a succession plan if I’m going to sell the dealership?

If you plan to sell your dealership, some would say succession planning is a waste of time, emotional energy and money. They might be right. However, I would encourage them to talk with Jay (not his real name) before they make a final decision. 

Click Here to: Read full article on Automotive Buy Sell Report website

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1651 Hits

Succession Planning or Building Business Value Planning?

There are many reasons why succession planning may be an unpopular topic. Some of which may be:

  • It appears to overwhelming and too emotional to address

  • A fear of giving up control, not wanting to retire, or addressing the inevitable of all humans – our mortality

  • The monetary/ time investment appears to much for the business

  • To excited and focused on growth to think about “the end”

I am not going to minimize any of the reasons above for avoiding succession planning, as they are very valid arguments however; I would like to challenge your thinking on the concept to see if I can move it up on your popularity scale. To do this, I am first going to provide a definition of succession that is much more comprehensive than misconceptions may lead you to believe.

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Regrettable but Reality – Facing Challenging Family Business Decisions

In spite of family dynamic issues, ABC Auto, a second generation multi franchise dealership group was “successful.” Dad, our original client from 35 years ago, was quite the dynamo. He had been a very successful domestic dealer in a prosperous community. Back in the 80's he also accumulated an assortment of lucrative import franchises before they were hot. Both of his sons came into the business and worked their way through the various seats with energy, enthusiasm and varying degrees of success. Against my recommendation, however; their dad did not hold them accountable for performance, elevated them quickly to management, paid them and passed ownership to them equally. He just could not bring himself to make a decision as to who would lead and who would follow.

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Identifying Successors - Can I Have Multiple Successors?

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~ An Excerpt from Family Business Heartburn Relief™~

The vast majority of businesses have a designated "successor leader." However, a business can have multiple successor candidates, who can provide support to "the leader." Successor candidates include any family member or key manager who brings value to the business and is prepared to serve as a leader with a goal of perpetuating the success of the business.

Multiple successor candidates ideally generate a team of successors who are led by the successor leader. The interaction of multiple successor candidates can be complex especially if there are no expressed parameters for sibling/cousin/Key Manager interaction; or if back biting, resentment and rivalry are tolerated. However, assuming there is mutual respect among the group of next generation successors, the more successors who have skin in the game and a vested interest in continued success, the merrier. Multiple successors, effectively managed, create organizational strength, resilience, power and leadership bench strength. 

Email This email address is being protected from spambots. You need JavaScript enabled to view it. for an electronic version of Family Business Heartburn Relief

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1992 Hits

Why Do I Procrastinate and How Can I Stop?

A friend of mine believes very strongly that no one should do today what they can put off until tomorrow. He is the ultimate procrastinator; and he's quite happy with where that's taken him in life. He simply does not buy in to the notion that any non-emergency has to be dealt with today. His rationale is all based on a Rolling Stones' hit titled "Time Is on My Side."

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When is the Right time to Discuss Succession Plans with Family Members?

In 1988, Jack was thrust into the leadership position of the family business his father started in the late 1950’s. At the time Jack took over the family business there was only one dealership and approximately sixty-five employees. Over the years the business had become highly productive and profitable in large part due to his father’s incredible work ethic, customer focus, business savvy and knack for attracting quality employees. Jack’s father was a humble man who attributed much of his success to luck, good fortune and being in the right place at the right time. “Timing is everything” was a phrase Jack’s father used frequently. From a business perspective, there very much could have been some truth to timing and being in the right place at the right time but for Jack, timing could not have been worse!

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2018 Hits

Interview - Key Issues Impacting Dealership Succession Plans

Check out Dan Schneider's Interview on Car Business Today where he discusses key issues impacting your dealership's succession plan. 

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1535 Hits

Interview - Why Your Dealership Needs a Succession Plan in Place

Check out Jeff Faulkner's Interview on Car Business Today where he discusses why your dealership needs a succession plan in place. 

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jeff-faulkner-business-succession-planning-the-rawls-group

 


 Sign up for our monthly e-newsletter to stay informed on how to overcome related succession planning issues.


1461 Hits

Keys to Preparing Your Successor

Just as there are many roads that lead to Rome, there are many paths that can be taken when it comes to preparing your successor. Many Dealers believe operational experience in the front and back ends of the business and participating in learning opportunities such as Dealer Academy are all that is necessary to become a successful auto dealer. Operational rotations and successfully completing industry education are extremely valuable steps in the successor preparation process. However, this approach often results in a false sense of security for both the Dealer and the aspiring successor as other critical developmental opportunities are omitted. So, what else can you do to ensure your successor is adequately prepared to lead your business in the future? Here are some tips to help ensure your successor is equipped to take the leadership baton and successfully run with it.

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How Many Hats are Too Many?

There are many elements that are key to a successful business and it is not a walk in the park. Most often, some of these characteristics include:

  • A strong leader who is on top of their business
  • Someone who is able to wear many hats and put out fires as they arise
  • Someone who has earned the respect of their managers who would follow them anywhere
  • And someone who is aware of the daily activities of their business and operates with an open-door policy their managers are happy to take advantage of

While this leadership style is currently an asset to operations, it is also a liability to succession.

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2014 Hits

Working Towards Working Together

When I first met my wife, Patricia, I was head over heels in love. Although, just a few years after our honeymoon, our marriage appeared to be less than ideal. However, we decided we wanted to be married so we found a counselor to help us understand and deal with the good and bad we brought to our union. After 30+ years of counseling we have a marriage that isn't perfect but one that is getting better every day.

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1965 Hits

Changing Family Business Perspectives for the New Year

Reflecting back on Thanksgiving, Christmas and New Years you may be thinking I have had all the family I can handle. No doubt, these are wonderful family holidays but within the realm of the family business it is very easy to get "over-famlied" and conclude "I need some space; I don't need more of the same crap I get at work at home". The ambient stress, frustration, resentment and acrimony with parents, siblings, cousins, in-laws or children can drain your enthusiasm and consume your patience, blocking your ability to apply your skills and talents towards the productivity of your family's business. As a result, you may be looking at going back to work like another opportunity to stick your hand in the garbage disposal. If family relationships have drained your New Year family business enthusiasm it is time for you to consider new perspectives that will relieve relationship pressure and potentially reinvigorate Family Dynamics and Harmony.

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1722 Hits

Wills and Trusts - How to Keep Your Family and Business Matters Private During Probate

As a succession planner, I am in constant dialogue with my clients’ attorneys about appropriate estate planning structures. Depending upon the state of residency, the training, and the perspective of the attorney, the dialogue can be interesting, especially when it comes to a few of my preferred structures, simple Pour Over Wills and Revocable Trusts. As we discuss these options, I commonly hear, “We can accomplish the same objectives with a Testamentary Trust Will.”, which is a Will containing a trust that is funded after the completion of probate. However, my classic response is, "Our clients who own a family business, and to varying degrees are subject to greater publicity and scrutiny, would prefer to remain private, and depending upon the state, avoid the hassles of probate, which cannot be guaranteed with a Testamentary Trust."

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OPPORTUNITYISNOWHERE

Take a close look at the letters above. Now, without changing the sequence of the letters, break those twenty letters into a sentence.

If business has been tough or you don't feel passion or commitment from your people, your sentence might read "Opportunity is nowhere." You might be thinking, "What have I done with that list of business brokers? I know it's around here somewhere."

Tempting as that broker search might be, don’t jump at it. Those same twenty letters can create another sentence: "Opportunity is now here." Same twenty letters, same and yet a completely different approach to finding a solution.

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