By David Smith
AWG President and CEO

Growing up as an independent grocer, I learned that as a leader of a family business, “it’s not about me, but it all starts with me.” Delivering future successes for a family business is dependent on much more than just the presence and leadership of an active owner. It requires a great team, well-developed plans, effective execution of those plans and self-motivated leadership.

I receive a lot of calls and outreach from member retailers requesting assistance and guidance. Sometimes I’m able to help them, but I often turn to others with far more experience and skills in the area of need.

One of the needs that exist in every family business is succession planning. It looks different in each situation, but it is a critical component to every business to ensure a bright and sustainable future beyond the current generation of leadership.

Common questions I hear are:

  • I am a long-term owner-operator that would like to transition to an absentee owner and professionally managed business; what steps should I take to….
  • I’m getting older, and I might want to retire – but I don’t know how I should…
  • I want to keep the business in the family, but I’m not sure my kids are ready…
  • I may want to sell my business, but I don’t know how to place a value on it or begin the process….
  • I am having conflicts with my partner(s), and I don’t know what to do about it…
  • I have a good business and have heard that forming an ESOP is an excellent way to transition my business to my employees, but I don’t know….
  • I have a family member (or myself) facing a difficult time (from divorce to health issues to drugs or alcohol…), and I need a plan to…

But all too often, the priorities of the day understandably prevent our members from succession planning. The reasons for postponing succession planning are common:

  • “I’m too busy running a business and taking care of my family to deal with that right now.”
  • “My business is too small to need that stuff.”
  • “I’m too young to need to deal with that right now.”

While all of these are true and running a business can undoubtedly be all-consuming, the issue is that some good options may no longer exist when the time does roll around by postponing the planning process. Succession planning, in short, is planning for your business to continue beyond your leadership. It’s a necessary part of every business, large or small, and it’s vital to protecting your family, company value and sustainability.

As this is a sensitive matter and highly confidential, AWG has chosen to align ourselves with experts in the field who hold the same values. We drafted the help of Carey Berger and Paul Adams. These two gentlemen have worked with the grocery industry and AWG for over 80 years collectively. Carey did significant succession planning work with our former CEO, Jim Baska, in the 1980s.

As this work is often started through questions and exploration, Paul and Carey have created an online resource called Crossroads. It’s aptly named Succession Planning is the Crossroads where family and business needs meet. Crossroads is designed for you to visit in privacy and learn from the real-life stories of succession planning as told by other AWG members and independent grocers. It features continually updated content by Paul and Carey and contains intimate discussions with independent retailers that have already traveled these paths.

You will see a lot more of Crossroads, including Paul and Carey, throughout 2021 and beyond. Please check them out at the Virtual Showcase and the Learning Lounge and look for them at the VMC Show in August.

If you feel you’re ready to begin succession planning in your company, reach out to them directly or reach out through your AWG District Manager or Vice President and Division Manager.

As Paul and Carey say: “We are here to help you make your own informed decisions at the Crossroads of business and family.”

I am very appreciative of Paul and Carey’s work, as I feel we have a duty to help our members plan for the future, as the future of their business is ultimately the future of our business.

Please know that your use of this online resource is confidential, and your activity is not shared with us at AWG. That’s the way we want it. We want you to be positioned to make the best possible decisions confidentially. Thank you again for being a part of the AWG cooperative and trusting us to assist you with your business life. We are proud to serve you and your family.