Financial Management

Ep.17: Building a Sustainable Family Business with Wayne Rivers

According to the U.S. Bureau of the Census, roughly 90% of U.S. businesses are family-owned and the Remodeling industry is well represented by closely-held firms, typically started by a founder and then handed down through multiple generations.

Family-owned businesses often run into obstacles and challenges, usually driven by “soft issues” such as communication, emotions, past conflicts, bringing spouses into the business, etc. However, what many of these struggling firms lack is a common vision or mission from a business perspective.

In Episode 17, Victoria and Mark welcome Wayne Rivers, President of The Family Business Institute, to the show to discuss more about his unique approach in working with these types of businesses.

Wayne’s approach is very different and he talks about his tried and proven, step-by-step strategic planning method for maximizing BOTH the success of a business AND their family harmony.

Wayne is a well-known thought-leader, speaker and author on the subject of family-owned businesses; his latest book is Our Family Business Crisis: and How It Made Us Stronger. Wayne is a Wall Street Journal Expert Panelist and has appeared on the Today Show, CNN, MSNBC, CNBC and the Retirement Living Network.

Victoria, Mark and Wayne discuss the Institute’s unique way of working with their clients; topics include:

  • Identifying reasons why family-owned business struggle
  • Transitioning from one generation to the next
  • The importance of the founder establishing vision early and often
  • The dangers of working AT the business instead of working ON the business
  • “The Magic Bullet” – Business planning methodology and subsequent positive side-effects
  • Going in through the “business door” vs. “family door” when dealing with conflict
  • Dealing with and resolving “soft issues” families face when working together
  • Describing a few steps in the Institute’s 10 step process of working with businesses
  • And more…

A great episode regardless of whether your company is family-owned or not. Many of the concepts discussed about business planning methodology will apply to any business, regardless of ownership structure.

We loved having Wayne as a guest… and we’re even more excited to have him as a featured speaker at the 2018 Remodelers Summit in New Orleans in September.

If you are interested in working with Wayne, his Information is below:

Wayne Rivers
President, Co-Founder
The Family Business Institute
4050 Wake Forest Rd, Ste 110
Raleigh, NC 27609
877-326-2493
Website: www.FamilyBusinessInstitute.com

Ep.13: Buying Out Your Business Partner with Rick Goldstein

Business partnerships are a foundation that so many of our R/A Roundtables Members have built their remodeling businesses on… Whether it’s a family or a group of professionals coming together to form a business, each has its own story along the way.

In episode 13 we take a closer look at a scenario where one partner wants to buy another out and take sole ownership of the business. Victoria and Mark welcome Rick Goldstein of Mosaic Design + Build to the podcast and discuss the process that Rick went through recently to buy his partner out of their firm in Atlanta, GA.

Rick has been the Co-Owner, and now sole owner, of Mosaic for more than 12 years and has been an avid member of the Remodelers Advantage family for many years. Rick and his partner made the decision to move toward a buy-out years ago and Victoria and Mark discuss and ask about the challenges they ran into and lessons-learned along the way.

Victoria, Mark and Rick talk more about:

  • Developing a shareholders agreement – covering ownership transitions, scenarios, exit strategies, etc.
  • Obstacles to overcome (timing, emotional steps, valuation, etc.)
  • Bringing in consultants such as a business valuation firm to get an agreed-upon base line
  • Factors that are calculated in the valuation process
  • How roles and responsibilities play-in to the buy-out process
  • Getting accountants and attorneys involved to hammer out how to physically make the transition
  • Communicating to the company’s leadership and team regarding the process
  • Top three pieces of advice for any owner looking to make this transition

Whether you are considering this move for your remodeling business or not, Rick’s story is fascinating and definitely worth a listen!

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Ep.07: Is an ESOP Right For Your Remodeling Business?

When it comes to succession planning and determining an exit strategy from your remodeling business there are plenty of options to consider.

Many of our Roundtables members have either sold or handed their businesses off to the next generation, for example… but all of them will tell you that making that determination early in your company’s lifespan can be critical to the success of your plan.

In today’s Episode of PowerTips Unscripted, Victoria and Mark explore an area of succession planning that is somewhat new to the remodeling industry, by talking with Anthony Mathews, a thought-leader in the area of creating and maintaining ESOPs, or Employee Stock Ownership Plans.

Anthony has spent the past 40 years helping business owners and employees transform their companies into communities of stakeholders through the creation and maintenance of ESOPs – many of them for construction companies. Most recently Anthony has spent the last decade at the Rady School of Management at the University of California, San Diego, teaching future business leaders and advisors.

Anthony describes what he refers to as a “Succession Crisis” in this country where closely held companies get to the end of their life span and simply close or liquidate. When that happens, the owners may (or may not) receive full value in the business, employees lose their jobs and towns and cities are faced with yet another business that is no longer a part of their business community.

Anthony, Victoria & Mark discuss:

  • What type of company sets up an ESOP? Size? Number of Employees? Characteristics?
  • What is the process of establishing an ESOP?
  • What are some of the challenges companies face?
  • What makes an ESOP different than a 401K, Profit Sharing or other plan?
  • What are the Tax Advantages that companies and employees will see?
  • How does having 10-30 owners effect the company culture?
  • Anthony’s 4 phase process of determining if an ESOP is right for a business

Is an ESOP right for your remodeling business?

If you are a current R/A Roundtables Member, Anthony has offered a FREE initial consultation to help determine if an ESOP is the right solution for your company.

Anthony can be reached using the following contact information:

Anthony Mathews
Rady School of Management
University of California, San Diego
Office: (858) 822-6010
E-mail: amathews@ucsd.edu

Ep.03: Top Financial Challenges Faced by Today’s Remodeling Business Owner with Doug Howard

Episode 3 takes a deep dive into the financial challenges that remodeling business owners face on a daily basis. Victoria and Mark welcome Doug Howard, Remodelers Advantage Director of Consulting to the PowerTips Unscripted studio.

Doug Howard is an entrepreneur, government official and small business consultant with more than 25 years of experience in leading organizations and assisting clients in many different industries.

After working with remodelers from across the US and Canada, Doug shares his thoughts on challenges such as:

  • Cash flow issues
  • Planning and budgeting for growth
  • Recognizing success patterns in your business
  • Stair-stepping growth (adding personnel & resources)
  • LEAN Process improvement and how it relates to production & cash flow
  • Identifying signs that you are growing too fast
  • Ownership structure: Partnerships, relatives, married couples, etc.
  • What to do when things start “going south”

Doug’s alternate job title at R/A is “The Fixer” and that becomes apparent as he shares his experiences in working with remodelers and providing his Five Words of Wisdom. Doug survives the Lightning Round with some key insights as well as a great book recommendation… Enjoy!

Thanks for Listening…

Please share your comments about Doug’s thoughts and advice below and if you have any questions for Doug, or you are interested in learning more about how Doug can help you with your business, contact him at doug@remodelersadvantage.com

If you’re enjoying our PowerTips Unscripted podcast, please spread the word and post reviews on iTunes and Stitcher.

Ep. 01: How to Create a Valuable, Sellable Company with John Warrillow

For our first episode, we’re thrilled to have John Warrillow as our inaugural guest. John is the author of Built to Sell: Creating a Business That Can Thrive Without You, and in this episode he shares tips on how you can build a high-value company. Even if you’re not thinking about selling today, you can’t afford to turn a blind eye to the process.

Topics covered include:

  • Action steps to developing a sellable company
  • The hub-and-spoke manager vs. the apple picker
  • The Switzerland structure
  • How to sell “air”

Plus, John helped us kick-off our “Lightning Round” and “Five Words of Wisdom” segments. All that and more for our first episode. Enjoy!