By nature, CNC machine shop owners tend to be practical people. After all they spend their days making quality parts or products for their customers. They also invest in new technology and competent employees. With a lot of hard work and no small sacrifice they build a successful business, and often hope to bring in their children or other family members as next generation owners.
This part of the American dream can be extremely fulfilling. It can also be a complete disaster – for your retirement and the welfare of your workforce – if the next generation isn’t up to the task. With that in mind, ask yourself the following five questions before promising your son, daughter, niece or nephew an ownership position in the company:
- Do they have the requisite capabilities? It’s hard to be objective, but the fact is if the person who will ultimately run the shop doesn’t have or can’t develop the necessary skills, they will likely fail. These capabilities go beyond the basic nuts and bolts of machining. They include the ability to lead employees, manage financials, build relationships with customers and suppliers, and acknowledge that they are not entitled to their position, but must earn it every day.
- Are they willing to start at the bottom? It’s much easier to gain the respect of the workforce if your children are humble enough to learn about the business from the ground up. As youngsters, sweeping floors, helping with shipping and receiving and fetching and carrying go a long way to building credibility until they’re ready to learn from the machine operators and supervisors.
- Do they really want to be part of your business? If their passion lies elsewhere, they will never be happy or effective running the company, even if they do it to please you. So don’t lay a guilt trip on your offspring if their heart isn’t in manufacturing. Better for them to follow their hearts while you build a different kind of succession plan.
- What about education? This goes to identifying the best role for next generation family members who want to be part of the company’s future. Some may be best suited for technical or engineering programs. Others may wish to pursue a degree in business. With the rapid advancement of manufacturing technology and the increasing competitiveness of the global marketplace, there will be room for many kinds of talents as your company grows.
- Can you relinquish control? Assuming your children choose to and are capable of taking command, can you grant them the authority they require to move your shop forward? Many owners have no problem assigning responsibility, but hamstring their successors by holding too tightly onto the reigns.
One way to introduce your next generation leaders to the world of CNC machining is to visit your Milwaukee Haas Factory Outlet. Their they can see the newest technologies that make today’s manufacturing far more sophisticated and intriguing than ever before. Call (310) 381-0750, email: jphillips@haasfactoryoutlet.com, or visit www.haasfactoryoutlet.com.