Last Thursday was the third session of this year’s Virtual Breakfast Series. We were able to feature an iconic family company based in Cedar Rapids. If you have been on an Iowa highway, you’ve seen trucks with “CRST” on the trailer. John Smith is the current President/CEO, and we were grateful to have him join us to share his journey as a second-generation family member. And in case you were wondering, CRST stands for Cedar Rapids Steel Transportation. 

John has been an advocate for family ownership for a long time and currently serves on the board of Family Enterprise USA. We had Pat Soldano, President of FEUSA, join us as well to talk about current tax law and other changes affecting family business. You can learn more about them here: https://familyenterpriseusa.com/

On to my top three takeaways: 

1. Communicate Regularly
   As all our speakers do, John really stressed the importance of communication between generations. The part I want to focus on is the Smith family’s use of a REGULAR meeting and staying consistent with it. I see plenty of families try a meeting or two when they hit a point of chaos. They use this as a tool to “talk things out” and “get everyone on the same page,” or insert your favorite cliché here. While that is ok and often necessary, it’s usually an act of trying to fix problems that, frankly, should be worked on in advance rather than when they blow up. A healthier approach for everyone would be to have an annual or semi-annual family meeting of some sort – talk things through before they blow out of proportion. 
    
2. Stay Patient
   Sometimes the next gen comes into the family business with no stops beforehand. The path looks clean and simple. Other times, that path can wind around while the next gen is out exploring other places and careers. I appreciate John sharing how important it is to keep the door open for the next generation. 
   
   While everyone loves to hear about best practices and “what most family businesses are doing” to develop the next gen, the reality is that there is no one best path. There are too many factors at play, and that’s what makes family so great and so frustratingly complicated at the same time. 
    
3. Family Businesses Are a Lot Like Snowflakes 
   As corny as it sounds, no two are alike. This was a great point brought up by John as he discussed succession plans. The way his father approached it and the way he is now doing things with his own kids look a bit different. We can put a lot of pressure on ourselves by trying to honor previous generations with what we think they might have wanted done or by seeking to copy their path as some way to honor them. 
   
   A better approach is often to do what works for your transition, and, in doing so, you give the family and the business the best chance at success. It might not be the way your parents did it, but it’s probably the best chance to ensure another generation will be able to deal with the same issues you're encountering now.

We are extremely grateful to John and Pat for their time and insights, and we look forward to seeing you throughout the rest of this year!
 

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About the Virtual Breakfast Series

Hear from seasoned professionals with this panelist series! Five times each year, family business members and service providers share their experiences on a variety of family business-related topics. You'll get a chance to interact with families who have been through some of the same experiences as you. All sessions are hosted on Zoom and provide an opportunity for breakout discussions and a Q&A with the panelists.

The Virtual Breakfast Series is free to families with a UNI Family Business Center membership. Prospective members are welcome to one free trial session.