Digital Dealer - October 2017 - 8

By Loyd H. Rawls
President/CEO,
The Rawls Group

// Ownership

Bringing NextGeneration Family
Members Into the
Dealership
One of the biggest
questions dealers are
asking these days is when
and how to bring their
next-generation of the
family in the dealership.
The simple answer to this
is that they should come
into your business when
they, and you are ready.
Readiness, however, is a
subjective term. These
three perspectives, should
be considered as you are
going through the
decision-making process:
a. Yours, the owner
b. Your next-generation
family member, AKA NextGen
c. Your business'
YOURS, THE OWNER

Your perspective as
the business owner is
foremost important. As the
dealer principal, you have
the freedom of control and
the burden of responsibility. So, if you want your
Next-Gen on board, feel
free to make them an offer. However, if you are a
bit reluctant to put on the
fraternity or sorority rush,
you are likely feeling the
burden of responsibility to
8

OCTOBER 2017

ensure you are not short
cutting your Next-Gen or
business.
If that little voice in your
head is not already whispering these to you, be
sure to listen, with intent
to what it might be saying:
	
"I need help. It's
getting late and if none
of my next-generation
family does not come on
board soon they will not
have time to learn the car
business before I retire.
	
He's not mature
enough. I don't need his
personal issues complicating my business.
	
She does not have
the right education.
	
He got fired from his
last job why should I think
he would be committed
here?
	
She has a habit of
quitting when things get
tough.
Whatever your concern,
there is a string tied to all
your questions that could
lead you to the "when
answer." When considering bringing the Next-Gen
into the family dealership, it usually is difficult

D I G I TA L D E A L E R . C O M

to separate the heart's
influence on the mind.
Ask for objective feedback
from an advisor on how
to squash the anxiety and
hesitancy.
I am objective, so I will
offer a few pointers on the
infamous "when" question.
	
Don't fabricate a job
for your Next-Gen. If you
do, you may open Pandora's Box leading to other
fabrication requests.
	
Don't be your NextGen's first full time employer. Family members
are not employees they
are Family Member Employees (FME) and they
will never be treated like
a common-law employee.
It will be far greater challenge for your Next-Gen
to manage employees
if they have never been
one.
	
Don't bring an
immature Next-Gen into
a mature business. The
chances they will embarrass and disappoint you
are pretty high. If your
Next-Gen needs maturing,
allow them to discover the

realities of life elsewhere.
	
Don't bring a NextGen into your business
until they have a favorable employment record.
Failing his or her way into
the business is not a good
plan for family business
success.
	
Don't bring a NextGen into the business
because they cannot
maintain the lifestyle
you aspire for them. It's
better for you to give them
money than to allow your
Next-Gen to think your
business is their personal
ATM or to let your managers think the welfare of
the business is not your
number one priority.
	
Don't be reluctant
to promote the benefits
of working in the family
business. You may be
competing against other
opportunities which may
appear more attractive to
your Next-Gen so you better be ready to compete.
	
Pay your Next-Gen
competitively until they
prove their ability and their
commitment. Then let
them feel the benefits of a
family-owned business.
YOUR NEXT-GEN
FAMILY MEMBER'S
PERSPECTIVE

The perspective of
your Next-Gen should
also be important to your
"when" challenge. Do not
discount their emotions
of feeling rushed into the
commitment too early.
They may feel it's the
right time or the ship has
sailed and it's too late.
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Table of Contents for the Digital Edition of Digital Dealer - October 2017
