70 to 80% of family owned businesses have no succession plan!
Succession Planning is one of, if not THE single most important responsibility of any successful entrepreneur, yet too often it is delayed, poorly executed, or a complete fail.
When to begin, how to prepare, who to involve, and how to execute, were some of the topics we explored as a panel yesterday at the Society of Lake Management Professionals Annual Summit in the arctic tundra of Myrtle Beach.
This is a topic dear to my heart. I’ve lived it as an heir, successor, owner, seller, buyer, and deal maker. I helped my father retire twenty years ago, and since then have helped nine other owners retire through acquisition. I’ve counseled family businesses, and given talks on the topic at universities, educational summits, and trade conferences. One day, I will have to help execute my own succession, and it doesn’t scare me to think or talk about it. It shouldn’t scare you either!
If you are in an executive leadership role, especially if you are a founder of a family owned business, you need to ask yourself routinely, “What happens if I get hit by a bus, and how do I prepare my team now?”
It was an honor to discuss this important topic with John M. Wilson Jr., Will Stevenson, and Thomas Barry. We all come from diversely different backgrounds, but we agreed on some really important points:
- Start yesterday.
- Involve your inner circle of professional advisors, including CPA, Attorney, Financial Planner, etc.
- Act decisively.
- Be objective.
- Avoid nepotism and favoritism.
- Require family members to earn it and encourage them to get experience elsewhere so they can add value.
- Communicate your plan to those involved.
- Make the hard decisions and own the outcome.
- Have a well thought Plan B.
- Don’t wait until it’s too late.
I found my way to this stage as a result of helping my friend Johnny Foster retire when we acquired Foster Lake & Pond Management in December 2023. It was an honor to take the reins of the amazing company he built, and I cherish the opportunity to be in Myrtle Beach with members of this team. After the panel, I had the opportunity to socialize with some great salt of the earth folks, and enjoy a nice seafood supper together. After dinner, we exited into a winter wonderland as Coastal Carolina was blanketed by nearly six inches of snow.
As I worked my way back to Raleigh, I stopped in Southport to check in on our Bland Landscaping Company team that was diligently clearing that frozen mess from the St James Community Center. That team is solid as a chunk of marl, and in spite of the frigid cold everyone was in good spirits.
Leaving the coast, I talked to two different entrepreneurs about their own succession plans, and I reflected on the last twenty four hours. I reminded myself how much I enjoy the people I get to work with and how fortunate we are to have such good people. My thoughts drifted into my own mortality and I embraced today…
—Kurt Bland, Bland Landscaping CEO
