Next Generation Start Up

The Process

Next Generation Start Up

The Process
Next Generation Support Part 1 - Why
Support in guiding and developing the next generation.

What is mentoring, and are you a good mentor?
o Talking vs Teaching
- Never letting the next generations “touch the keys”
o Is the next generation prepared?
- Fear of failure to rise to the level of their successful parents.
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Greer's Path" Station along the Peer Paths
Also found at "Holt Path" Station along the Peer Paths
Also found at "I'm Retiring - Now What?" Station along the Transition/Conclusion
Next Generation Support Part 2 - How
1. Reciprocation Agreement
a. To give successors a broader perspective of the industry
- Contract with another business in the industry – communication between the
two businesses to focus on what they need exposed to.
- That individual leaves the company and goes to work at another business.
- Talk to your wholesaler if you don’t know of someone to have this agreement
with.
• Does the wholesaler have an opportunity with them?
b. Example: Coors & Gallo Families

2. Send successor to work elsewhere without an agreement.
a. Doesn’t have to be in the industry.
b. Still learn new business ideas
- Ex. Working with perishable foods as a grocer and being able to bring back that
information to your business.
c. Difficult, but can be successful with communication and understanding of expectations.

*Success dependent upon the next generation being prepared.
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Greer's Path" Station along the Peer Paths
Also found at "Holt Path" Station along the Peer Paths
Also found at "I'm Retiring - Now What?" Station along the Transition/Conclusion
Getting the Next Generation Involved
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Holt Path" Station along the Peer Paths
Timing to Transition
Timing DOES matter!
When is the right time to transition your family business, and how will you know when that time comes?
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Transferring to the Next Generation" Station along the Transition/Conclusion
Also found at "Wallace Path" Station along the Peer Paths
Also found at "Albrecht Path" Station along the Peer Paths
Also found at "Mattheisen Path" Station along the Peer Paths
Also found at "Eskew Path" Station along the Peer Paths
Path to Involvement - Working Outside the Family Business
Let's talk about the path to your involvement in your family's business and the value of working for an outsider prior to returning to your family operation.
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Albrecht Path" Station along the Peer Paths
Also found at "Mattheisen Path" Station along the Peer Paths
Personality Types and Role in Succession Part 1
Personality Types:
• Important to know the personalities of family members, and often team members as well.
• People have preferred personality types.

• Personality Tests:
o Myers Briggs
- To find out personality preferences

• 8 Preferences:

o Extrovert
o Introvert

o Sensor
o Intuitive

o Feeling
o Thinking

o Judgmental
o Perceptive
Also found at "Who Will Take Over?" Station along the Transition/Conclusion
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Greer's Path" Station along the Peer Paths
Personality Types and Role in Succession Part 2
Why is Myers Briggs important in succession?

• Personality preferences can conflict:
o These conflicts can lead to issues with decision making among owners and successors.
o Example: Parent running a business, child comes in to take over and has different
personality type and then struggles to fit in with the team of people who have a
different personality preference.

• Critical to understand who we are, who our team members are, and who our successor(s) are.
o Coping mechanisms: ex. Adapting the team
- Important to understand irritants – useful for team to understand each other.

• Where in the process do you address this?
o Hint: it’s not as you’re walking out the door!

*Example: Son and Father running business, they have different communication styles
and had to adapt their communication in order to work together effectively.
Also found at "Who Will Take Over?" Station along the Transition/Conclusion
Also found at "Preparation for Multi-Generational Ownership" Station along the Transition/Conclusion
Also found at "Greer's Path" Station along the Peer Paths