Helen Bond, the author, shared succession planning insights from multi-unit franchisees across the country spanning a variety of brands including: Paul M. Booth Jr., President of Cincinnati-based Concentric Brands, a McDonalds Franchisee: Terry Kurth, a Weed Man franchisee, Nick Marco, a Hand & Stone Massage and Facial Spa multi-unit franchisee, and Schlotzsky’s multi-unit franchisee JJ Ramsey.
Kendall shared in the article,
“The multi-unit franchise model is a relatively new niche, with fewer second- and third-generational companies than, say, manufacturing, says Rawls, a second-generation family member of the business succession planning firm.”
First generation owners have a harder time processing the “odds against” them because they haven’t been tested as much as second, third and fourth generation businesses. Alternately, next gen and future generations have a harder time appreciating the risks and sacrifices the first generation had to make in order to ensure sustainability and success of the business.
Whether you are first generation, next generation or the future generation, as a business owner you can develop strategies now to avoid the known and unknown landmines. In our more than 45 years of working with business owners across a variety of industries, we appreciate the importance of building from what we know. We are all learning more everyday due to changes and challenges thrown at us. Strategize or scenario plan obstacles, so you have the creative problem-solving energy to adapt to the new challenges.
Kendall also spoke to the importance of succession planning, as it relates to building wealth, impacting lives and building a legacy for the future:
“If a franchisee’s goal is to buy a job and see where the chips fall, there is no need for succession planning, However, if the goal is to build wealth, affect lives, and create opportunities for the future, the purpose of succession planning is to build an unbreakable chain of strategies to overcome the possible, probable, and potential issue affecting the achievement of your vision. Essentially, it’s about creating and refining strategies for sequential successes, no matter what is thrown their way.”
Owners often fall for the misconception that succession planning is about planning for the end. However, that is a false narrative impacting the success and growth of a vision. Example of a probable issues is a key leader retiring or possibly incentivized to leave and work for a competitor. Today’s environment is a key example of supply chain issues and shortage of workers. Succession planning builds strategies, so your business can be agile and flexible; no matter what is thrown your way.
It is often that we hear from business owners who do not feel like the traditional family-owned business, and Kendall’s quote in the article says volumes:
“Many franchisees don’t consider themselves family-owned because ‘family’ isn’t in the business yet. In our experience, where two or more people work together for reasons other than money, it is a family business. Family-like bonds are created and, assuming the company is successful, family members may become interested down the road. Not addressed ahead of time this can create many complications.”
Assuming the business continues to grow and provide for an above average lifestyle, family and friends will be attracted to the business. It is a probable and potential known. There are tools and strategies readily available so to minimize drama and distracting conflict from influencing your business culture
Contact us and we can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.
The Succession Planning Matrix
Many people put off succession planning because they think it means retirement, exit, and the end. However; succession planning is just the beginning. It gives the owner options in terms of what “their next” looks like, whether that be growth, philanthropy, or a new business venture. Our process focuses are addressing 10 key areas of what we call the Succession Matrix.