Growth Strategies for Family-Run Energy Businesses
As Featured in Oil & Energy Online
In the rapidly evolving energy sector, succession planning and growth strategies are paramount, especially for family-run businesses. Kendall Rawls of The Rawls Group, shared pivotal insights at the recent HEAT Show. Collaborating with Fred Lord of Cetane Associates, Kendall presented an enlightening session on “Growth Strategies for Family Businesses.”
During this session, Kendall outlined:
Growth Objectives: The foremost decision for business owners is to ascertain whether they’re aiming to grow-to-sell or grow-to-transition. This foundational decision sets the trajectory for the company’s future.
Balancing Family Dynamics and Business: Kendall emphasized the significance of taking into account family dynamics while planning for business growth. This involves understanding cultural and political pressures within the family and business.
Corporate Structure in Family Businesses: A resonating message from Kendall was the importance of managing family-owned businesses with the rigor of corporations. This involves:
Implementing formal job descriptions.
Establishing clear prerequisites for hiring family members, including stipulated education and training levels, as well as credible employment histories.
Instituting performance metrics.
Developing clear hierarchies for decision-making.
Crafting a well-documented succession plan.
With a majority of attendees hailing from family-owned businesses, Kendall’s insight emphasizes the importance of adopting a structured approach in running family-owned heating oil, propane, and petroleum businesses. By implementing the precision and formality commonly seen in larger corporations, these businesses can reap long-term benefits. This includes improved efficiency, scalability, and sustainability. By embracing a structured approach, family-owned businesses can position themselves for success and ensure their continued growth and prosperity