Hubler For Business Families
  • Home
  • About
    • Tom Hubler
    • News & Press
  • Services
    • Succession Planning
    • Ownership Planning
    • Management and Leadership Planning
    • Business Planning
    • Family Planning
    • Family Renewal Retreat
  • Speaking
  • Book
  • Resources
    • Free Assessment
    • Case Studies
    • Vision for Success
    • Blog
  • Contact
  • Home
  • About
    • Tom Hubler
    • News & Press
  • Services
    • Succession Planning
    • Ownership Planning
    • Management and Leadership Planning
    • Business Planning
    • Family Planning
    • Family Renewal Retreat
  • Speaking
  • Book
  • Resources
    • Free Assessment
    • Case Studies
    • Vision for Success
    • Blog
  • Contact

Life Beyond the Founder-Entrepreneur

7/31/2017

1 Comment

 

​Successful entrepreneurs must think through how and when to leave the top job.

Picture
Consider the tale of Jim, an entrepreneur who started his family business, and Robert, the nonfamily member Jim hired when he decided to step down from the company. Jim had a son who was not quite ready to take over the business, so he asked Robert to run the company and train his son.

All the right intentions:
Jim nurtured the company from a garage startup to an enterprise making $40 million annually. To ensure a smooth transition, Jim met monthly with Robert, his new president, to review the company’s performance. At one such meeting, Jim noticed Robert’s last item on the agenda: “Jim’s Schedule.” When they got to it, Robert said, “Jim, if I’m going to be successful around here, you can’t be here as much.”

Shocked, Jim thought, “What will I do? The company is my life.” Then he thought about his hobby farm and his boat on Lake Michigan and decided, “I’ll be fine. I have plenty to do.”

A few months later, the last agenda item was once again “Jim’s Schedule.” Jim said, “Well, Robert, at least I’m doing a better job of not being around as much.” Robert shook his head slowly. Jim’s continued presence in the company undermined Robert’s leadership. Jim could not, in his mind, “quit” the company.

The decision to step down and retire is one of the hardest a family business entrepreneur ever makes. But entrepreneurs don’t have to retire and leave their companies. Instead, they must change their job description. Jim should become the architect and designer of new ownership, management and leadership systems. He should be the lead family member to organize and build consensus on family values and family philanthropy. He doesn’t have to quit; he must lead from a new perspective.

In my 30 years of consulting with family-owned businesses, I have seen many entrepreneurs who failed at the “letting go” process. The breakdown tends to come from a failure in communication.

Real-world examples:
Don’t forget a key player in the business succession plan is the spouse. A company once hired me to do its succession planning. Accountants had created a tax-driven plan that would save an enormous amount in taxes. It allowed Allan, the entrepreneur, to retire immediately and to spend winter months in Arizona.

During a briefing with the accounting firm, Allan quickly warmed to the idea of spending his winters in Arizona. Allan’s wife, Helen, was not present.

The accountants later presented the logic, tax savings and value of the plan to a wider group that included Helen. She slapped her hand on the table three times as she yelled, “I’m too young for my husband to retire!” Allan did not retire for another five years.

In a second succession planning case, my client, Roger, shared his dream for his life after leaving the company with his family. He wanted to play golf in Florida for four months every winter. Roger Jr., Roger’s highly capable son, was ready to take over the company and supported his dad’s dream.

Roger’s wife responded, “That’s fine. I will be happy to come down and visit a couple of times. But our grandchildren, our friends and our church are all in Minnesota. You can go to Florida, but I’m staying here.” The succession plan was stymied because Roger and his wife had not talked things through.

When we start playing the back nine, we are called to develop a new dream with our partners—for work, family, leisure time, service and philanthropy. Jim and his wife, Becky, created a new dream for their future that includes sharing their story and what is most important to them with their grandchildren.

Family-business entrepreneurs make implicit contracts with their spouses that concern the businesses. It may be unspoken and implied as they take on roles to meet the needs of the businesses.

By the time a married couple are in their 60s and 70s, however, they need to be more explicit about their expectations. They need to be specific about plans and not merely assume that their partner knows what they expect.

Both spouses need to share their new dreams and include the younger generations as part of that dream. They must work together to support the transition, determine their new job descriptions and communicate their intentions.

KEY TAKEAWAYS
✔  The decision to step down and retire is one of the hardest a family business entrepreneur ever makes.
✔  When the time comes, entrepreneurs don’t have to retire and leave their companies. Instead, they must change their job descriptions.
✔  Rather than undermining the new leader’s authority with their continued presence, founders should become the architects of their company’s new ownership, management and leadership systems.
✔  Stepping down is not quitting—it’s leading from a new perspective.

See the original article on Twin Cities Business Mag
1 Comment
car parts link
5/2/2023 04:15:15 am

I agree that the decision to step down and retire is one of the hardest a family business entrepreneur ever makes.

Reply



Leave a Reply.

    Most read blogs

    Categories

    All
    Business Planning
    Case Studies
    Family Planning
    Featured In
    Management And Leadership
    Most Read Articles
    Ownership Planning
    Succession Planning
    Twin Cities Business

    RSS Feed

    FREE Resources

    Family Renewal Retreat™

    SCHEDULE YOUR FREE ORIENTATION MEETING.

    Take this risk-free first step in ensuring the continued success of your family business now. There is no charge for the orientation meeting other than out-of-pocket expenses for travel. 

    TOM HUBLER WILL GIVE YOU A FREE ORIENTATION.

    Does your family business need help with succession planning, conflict resolution, management or other issues? If so, we'll arrange a one-on-one orientation meeting with you and Tom Hubler to help you explore the possibilities of working with us. If you choose, your family and business associates can also attend. Here, in a relaxed environment, you can talk about:
    • Key family business issues
    • Plans necessary for the success of your family-owned business
    • Possibilities and expectations
    • Terms of the relationship

About

Hubler for Business Families helps family businesses manage the boundary between their business/financial concerns and family relationships.

LEARN MORE

Services

Succession Planning
​Management and Leadership Planning
Ownership Planning
Business Planning
Family Planning
Family Renewal Retreat
Speaking

Platinum Group

​​Hubler for Business Families and Platinum Group are merging to meet the unique challenges of family owned businesses.

​LEARN MORE

Resources

Picture
Case Studies
​Vision for Success
​Other Resources
Site Map
​The Soul of Family Business

SHOP The Soul Of Family Businesses
Free Assessment
​© COPYRIGHT HUBLER FOR BUSINESS FAMILIES 2022. ALL RIGHTS RESERVED.
​
WEBSITE DESIGNED BY: SKOL MARKETING