Seeking Succession

Seasonality, inflation, politics, people, and technology are a few headwinds impacting fuel dealers, wholesalers, and service contractors in the energy space.  We are often asked, “How can we create predictable revenues in an industry influenced by so many outside “threats?”

In this episode, Doug Woosnam, a Consultant with Cetane Associates, Clayton  Latiolais, a succession planner with The Rawls Group, Marty Kirshner, Partner with Gray, Gray & Gray, and our very own succession planner Champ Rawls discusses strategies to take control of the ebbs and flows of your business, which include:

The strategic planning process is a collaborative initiative allowing you, supporting family members, and key management to discuss and confirm the vision and mission of the organization, as well as the resources needed to achieve business goals.

The outcome of the strategic planning process is a detailed action plan that addresses short- and long-term goals, operating methodology, talent recruitment, effective business structuring, and effective communication.  The strategic plan will then serve as the compass for future business and succession.

Champ Rawls shares that sitting down with your team and engaging in strategic planning will help you identify your strengths and opportunities. Once you know where you stand, you can then evaluate what potential outside business lines you could add within your existing footprint, whether that be HVAC, home energy audit, concrete, pest control, or landscaping.  Assuming they fit within your business model, other services can help insulate against change.  You can also discuss your weaknesses, develop strategies, and identify resources to address performance issues.”

Create an operational budget so you can measure what they are doing.  Doug Woosnam shares that it is surprising to see how few businesses have a proper budget, something they can measure current performance against past performance and compare where they are versus what they need to be doing.  Commonly, Doug sees dealers lacking in preparation.  They are in their third week of the month, down 20% on degree days, but they are at a loss for how to address the deficit.

Doug continues to share that if a Dealer has a budget, they often miss key performance metrics.  A standard metric missed is how many drivers are needed to support the business, and dealers often express they are unsure even how to determine that metric which is:

In this business, manpower is the most significant expense next to the product cost. But unfortunately, there is not enough appreciation and understanding of what goes into developing a budget that will maximize opportunities.

Stay on top of budgeting, using a tool such as a break-even analysis.  Marty Kirshner shares that this tool will provide insight into how many gallons you need to sell to break even or at what margins you need to make. 

Clayton Latiolais shares that sustainable revenues and growth depend upon talent, teamwork, and rock-solid systems for your people to follow, establishing standard processes for “getting things done.” Otherwise, people make it up based on their work styles creating inconsistencies and inefficiencies in the business.  Creating the margins required to break even and create profitability depends upon efficient time and cost-saving processes.

Visit the “Create Control Over Your Future” discussion page or select one of the additional episodes of the series below:

Even though Dealers are making money, the future is unclear; for some, the unknown creates anxiety. As a result, we see business owners considering, more than ever, if it is an excellent time to cash out. Succession planning allows you to choose your best outcome – identifying your strategic objectives to fulfill your vision and provide for your family, not just business goals.

For example, suppose you are working to make the business the best it can be by department, person, or structure. In that case, you can’t go wrong if the outcome is passing the business on to your family or key manager or putting it on the market to sell and get the best possible price.

In this episode, Pete Theil with Haig Partners and The Rawls Group’s succession planner Champ Rawls discuss strategies to create more control over fulfilling the future you envision.

Visit the “Future Proof Your Business” discussion page or select one of the additional episodes of the series below:

or more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

Successfully integrating family into business leadership while balancing family dynamics is full of complexities. As Joe Chastang shares, many private and family business owners screw it up. Thanksgiving and Christmas come around every year, and the business provides for 100+ employees.

Mis-matched expectations, communication differences, and management styles can create challenging moments impacting business operations, team dynamics, and family gatherings. As a result of leaning on succession experts, Joe and his leadership team learned how to make the company better and grow the business, successfully integrate the second generation into key leadership positions, and balance family and business relationships.

Resources

For more insight from Joe Chastang of Chastang Ford, check out the next episode in the 10-part series:  Avoid Emotional Landmines

or more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

A successful family business can provide opportunities to all who are associated with the owners or viewed as family. History has proven, the odds of family business success through multiple generations dwindles with every ownership transition. However; where many family businesses have failed, there have also been many family businesses succeeding and thriving for generations. One of the key ingredients to successful family businesses is a winning culture.

Respect and trust go hand. A person or leader must be respected in order to also trust their decisions. As a family member employee entering the business with hopes to be a key leader or owner one day, earning the respect of employees, key leaders and strategic partners such as banks and manufacturer/franchisors are essential. Anyone can be given a job or title, but respect is earned.

Kendall Rawls, a family member in her own families business  shares 4 strategies to earn respect in the family business

Resources:

Email Kendall Rawls at [email protected] if you would like a gift copy of either “The Four Agreements” or “Braving the Wilderness” by Brene’ Brown.

For more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

Roland Spongberg became interested in succession planning after a car dealer friend shared difficulties he was experiencing with his siblings. With no desire to cash out, and a father of six kids, with some working in the business and some not, Roland began thinking about the future and opportunities he wanted to create for his family and business.

As our world constantly changes around us, so do family and business. Thirty-five years ago, Roland started WKS Restaurant Company with one El Pollo Loco. As of today, it has grown to 375 restaurants in 19 states operating Denny’s, El Pollo Loco, Krispy Kreme, and Wendy’s.

Listen in to hear Roland Spongberg share how his planning environment is evolving as the family and business transform over time. Succession planning is an ongoing process that refines strategies towards the vision imagined.

Resources

For more insight from Roland Spongberg, Founder and President of WKS Restaurant Group, check out the episode It is Possible to be Equitable

or more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

It can be easy to get lost in a family business. Not knowing who you are and what you want to from what the family, key leaders, and anyone who has an opinion or stake in your or the business’s future. Constant conflict or shutting down to what you want are common when trying your best to navigate a win-win-win. Sadly, what we forget is we often lose in that scenario. Balancing self, family, and business requires proactive work, otherwise, resentment builds.

Family members who work in a family business have to work harder to find personal independence because they are so close to “the tree” of family and key leader stereotypes, and the baggage that can come from assumed enablement of the family business environment.

This discussion focuses on 4 strategies to fulfill your personal goals and create an environment for you to be the best you can be for yourself and those around you.

For more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

A family business is such a wonderful opportunity.  However, many 2nd, and 3rd generation business owners screw it up.  And as Tracy shared, she and her husband did not want to be the generation to screw it up.  With the third generation entering the business, Tracy and her husband felt like the sandwich generation.  Tracy’s father still plays a role in the business; Tracy and her husband fill key leadership roles as President and GM, and Tracy’s son was ready to come on board.  As a family, Tracy wanted to sit around the Thanksgiving table with those she loved and continue to build a successful business.

The succession planning process provided Century Automotive Group a roadmap for effectively integrating the next-generation family in the business while building trust and rapport with key leaders.  The family business is not a birthright; it is a beautiful family asset, which requires protecting the family unit and the business to ensure both are nurtured effectively.  Listen to hear Tracy Jones share key strategies that have created the roadmap for ongoing family and business success.

For more insight from Tracy Jones, President of Century Automotive Group, check out the episodes:

For more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.

Century Automotive Group is thriving across three generations. Love and commitment to nurturing family relationships have been vital ingredients for their success. From Tracy’s integration into the business as the second generation, and now the third generation actively working in the business; they live by there is no business gain worth a family loss.

The history of Century Automotive Group is unique and, at the same time, similar to so many entrepreneurial-owned businesses. Passion for an industry, and as Tracy would often hear her father say, a little bit of luck, a lot of talent, and the right place at the right time, a successful business is born. A love for the car business inspired Tracy to dream about becoming a Dealer at a very young age.

It was a different time and place for women back then, so instead of going directly into the car business after college, Tracy got her CPA and worked for Price Waterhouse Cooper in Houston. Then, about five years later, Tracy’s father asked if she was interested in moving back to Huntsville, AL because the business needed a controller, and he was thinking about retiring. Tracy was ecstatic about the opportunity and felt confident in her experience as it gave her credibility and, with her finance background, had a much-needed skill to provide.

Listen in to hear Tracy Jones share the history of Century Automotive Group, what inspired her to join the family business, and how succession planning has supported their vision for building strong family relationships and a business growing in value and community impact.

For more insight from Tracy Jones, President of Century Automotive Group, check out the episodes:

For more resources on building a strong business and succession planning, visit www.seekingsuccession.com. And leverage our Succession Readiness Survey. A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.