Retail Observer

RETAILOBSERVER.COM JULY 2016 58 R ecently I attended a MEGA/Whirlpool Business Training Seminar with some of our great members. I began to think about how many years of experience we had sitting in one room and, how many generations they represented. According to the Family Business Institute, only 30% of organizations last into a second generation, 12% into the third & only 3% operate in the fourth generation. Several dealers in attendance were beating the odds and it was obvious as to why, they invest time to plan for their future. One such member is Bitter Neumann Appliances T.V. Furniture in Sheboygan, WI in which we spoke with Dan Radue, co-owner. Bitter Neumann has been in business 94 years and into their fourth generation. They employ 37 people and have two locations. Out of the 37, three are family members including the co-owners Dan & his brother Tim. Dan worked in the business for 14 years prior to taking over in 2007. Dan's father worked with his family, accountant and attorney to build a transition plan and timeline. Years before the transition, Dan & Tim began to assume more responsibility and leadership allowing their dad to retire. Unforeseen events added to the pressure of succession. Dan's brother Tim faced a health scare that landed him in the hospital for two months. Then there was the sudden economic downturn. Many local businesses were forced to close. Thankfully, and because of a well- planned transition Dan and Tim were able to weather the storm and emerge successfully from the crisis. In 2012, Bitter Neumann opened their second location in Manitowoc, WI. In Dan's eyes, this was the single largest positive impact on the business. In addition to expansion, they continue to integrate automation such as POS upgrades, tablets on the sales floor, linked phone systems between the two stores, inventory scanners, GPS on all trucks & service techs credit card acceptance. When asking Dan what mistakes he felt he has made over time, I had to chuckle at his response, "I didn't have enough paper to write them all down". The key takeaway for every mistake made, Dan learned something new in return. The on-going challenge is finding quality employees including delivery and service. Dan's children are 16 & 13 and they help at the store when they can, which Dan really enjoys. As a child, he was never pushed into the business however; he always knew that was all he wanted to do. Like father like son, Dan doesn't intend to push his children into the business but certainly will help them if they show interest. Succession planning can feel like a daunting process. There are several keys to successfully aligning yourself to take over a family business. First off, start in the family business at a young age and learn the business from the bottom up. All the while making sure you share the same goals and values. Be a sponge; learn from past generations and remember the face of the organization should be highly respected by all. I would encourage all of you to start working on your success- ion planning. Mom and pop stores have and will continue to be here to stay! This is has been one success story. Next month we will share another. It touches my heart to know how hard everyone has worked and what challenges they have overcome to end up where they are today. B U Y I N G G R O U P N E W S RO Missy Hodges, Vice President Appliances MEGA Group USA RO SUCCESSFUL FAM ILY BUSINESS PLANNING Above: Bitter Neumann Original store Inset: Co-owners Dan & Tim Radue

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