Challenging topic:
• Blood – part of who you are, your heirs/beneficiaries, keep *my* family business a family business.
o Business as Part of the Family:
 The care and preservation are more important than any one generation.

• Competency – ability to take rolls that are there and ensure they function properly.
o Specific types of knowledge, or capabilities

Options differ for larger organizations.

• Larger Organization:
o multi store operation, larger staff of people, greater financial needs, more complex,
office off-site
o If the owner attempts to do it all, things will suffer.
-Puppeteer vs the puppet
o Larger organizations all started as smaller organizations/one store operations.

• If you are plenty busy behind the scenes (i.e. working primarily in the office, not in store), the
resources look different than a small organization.

• Where does competency & blood come in?
o Still need the same things as the smaller organizations (more than ever); desire/drive,
requires real competency, want to be there…
- Larger organizations have the ability to have resources around to take over the
areas that are not your strengths.
> Opening a spot for someone else to be good at what they’re good at,
and you can excel at your own strengths.

• Must be honest with yourself and your successors about what roles they are capable of
assuming in the family business.

One store operation:
o Do I have a separate office? Probably not.
o Office is likely at the store.
o Acting as more of a store manager… (But also HR, CFO, CEO, and so on)

Example: When you want to keep the store in the family and avoid selling

-"I want my son/daughter to take over the business."
>Are they teachable?
>Do they have a passion for the business?
>Can they do what you are doing?

In this video we discuss the following in regard to having those difficult conversations with family about the business;
1 - More communication is better
2 - Techniques
3 - Outside Help
4 - Separation

Timing DOES matter!
When is the right time to transition your family business, and how will you know when that time comes?

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

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.

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.

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.

"I'm too small. I'm too young." But are you?
In this video we discuss the importance of succession planning early on and in all stages of your 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.