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For any business to continue over time, there are many variables that affect its longevity. Today, many family business owners are reaching retirement and choosing to sell to competitors or private equity firms. However, there is another path — one I am a firm believer in: passing the business to the next generation.
There is something unique, almost magical, about a well-run family business. Having the opportunity to transition that legacy to the next generation is a true blessing and a special milestone for any owner.
Key takeaways
- Intentionality is key: Successful succession requires a well-thought-out, multi-year plan rather than a sudden handoff.
- Start from the ground up: Future leaders should gain “field” experience early to understand the mechanics of the service before managing people.
- Diversify experience: A successor needs exposure to various roles — from branch management to sales leadership — to build the confidence required for the CEO role.
The handoff begins with a plan
I consider myself blessed to have a family business that has grown into an incredible team. As I reach the age where my peers are looking toward retirement, I am fortunate not to face the need to sell. Instead, we are following a highly intentional plan of succession for my son, Bo Jenkins.
This hasn’t been a quick process; we have been working toward this since Bo graduated from college in 2014. Our goal is a transition into the CEO role over a structured period, ensuring he is fully prepared for the day he is in charge.
Learning the ropes: A 15-year roadmap
To prepare a successor for a multi-service, multi-branch operation, we developed a plan executed in broad strokes over 15 years:
- Field experience: Bo spent two years in the field at our Austin, Texas home office. He ran a pest control route and worked in our other divisions, learning the basics of the mechanical and lawn industries.
- Branch management: The next step was moving to a mid-sized branch to manage a team on his own. This was undoubtedly the best way for him to learn the nuances of the business.
- Sales leadership: After six years of branch management, he moved back to headquarters as the company sales manager. Having all sales from all divisions report to him provided valuable insight into the breadth of our services.
The path to the CEO role
Recently, Bo was promoted to VP of sales and operations. It is a significant role, but one for which he has earned tremendous confidence through his years of preparation. When we announced this promotion to the team, it was met with enthusiastic approval.
By having a family member transition into leadership, the pressure to sell the business evaporates. I am excited to watch this growth over the next three years as we move toward his final promotion to CEO.
Conclusion
A successful succession is not just about the owner being ready to leave; it is about the successor being ready to lead. By creating a structured path that values hands-on experience and departmental leadership, you ensure the business remains strong, stable and firmly in the family for years to come.
