Recap: Beth Miller and Mark Stiles: Ensuring Success For Non-Family Member Executives in Your Family Business
Beth Miller and Mark Stiles: Ensuring Success For Non-Family Member Executives in Your Family Business
Recap: Ken and Kirk Driskell: A Family Full of Entrepreneurs
Kirk and Ken Driskell Share the Story of a Family of Entrepreneurs
Ken Driskell launched a bank in 1983 and hasn’t stopped helping to build businesses since then. He has served as a mentor to his son Kirk as Kirk has grown his highly successful real estate business, Power Realty Partners.
There have been many lessons learned and much wisdom passed along over these years, and Ken and Kirk will share all of that and more with us on our broadcast. As you will see, the Driskell clan are born entrepreneurs.
Our guests:
Kirk Driskell
Kirk is a Georgia native and remains a Milton, Georgia resident with his wife Deena of 8 years and their three children. Being raised in a home that promoted faith, relationships and encouraged the entrepreneurial spirit, it was inevitable that a once door to door rock salesman as a child would continue into his adult life as a salesman. After graduating high school in 1993 then attending Reinhardt College, Kirk obtained his Bachelor of Science degree in Business. Shortly thereafter he received his real estate license and then went on to obtain his real estate broker’s license in 2002. That same year he founded Power Realty Partners as a full-service real estate brokerage company serving its clients’ real estate needs in the areas of residential, commercial, investment, resort and property management.
With a strong personal commitment to community service, he serves on the Board of Directors for Three Dimensional Life, a non-profit organization based in Gainesville, Georgia whose primary purpose is to make a positive impact in the lives of troubled teens, the Alpharetta Rotary, and Life Impact Ministry that partners with strategic churches and leaders of men that share a strong desire to reach next generation leaders.
Kirk Driskell, Power Realty Partners, 178 S. Main St., Suite 300, Alpharetta, GA 30009, Telephone 770-888-7653, kirk@powersoldit.com
Ken Driskell
Ken spent 30 years in banking and served as Chairman and CEO of First Colony Bank from 1983 to 2003 when he sold the bank and retired from traditional banking. The ESOP plan that he set up for his bank ensured that his employees shared in the wealth created by the successful sale of the bank.
Ken has been a real estate investor all of his life, but he had another interest that serves anyone well who chooses real estate as a career—he took stand up comedy classes and performed at Punchline to improve his public speaking skills. And it worked as he went on to be a key note speaker at banking conventions all over the United States. His ultimate goal for all of this was simply to enhance shareholder value thus ensuring that the bank was sold at a premium price.
He is the author of “How to Make Your Banker Say Yes” and has spent his lifetime mentoring his son Kirk. Today, he and his wife and daughter own and operate a highly successful youth gymnastics center in Alpharetta, GA where he continues to exude the entrepreneurial spirit that has always marked his career.
Ken Driskell, All Around Gymnastics, 5500 McGinnis Ferry Rd., Alpharetta, GA 30005 Telephone: 770-475-8188 http://www.allaroundgym.com/about/
Recap: Angel Investing and the Family Business with Karen Robinson and Michael Blake—Insights, Resources and So Much More
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On July 8, 2010, Pat Romboletti and Meredith Moore and Family Business Radio welcomed Michael Blake, co-founder of Start-Up Lounge and Director of Valuation Services at Habif, Arogeti & Wynne, LLP, and Karen Robinson, a serial entrepreneur, philanthropist and angel investor in family-owned businesses.
The day’s discussion centered on angel investing and its role in family-owned businesses from two perspectives: 1. The option of a family business investing in a start-up as a way to diversify and transfer wealth. 2. The role an angel investment can play in these tight money markets.
To begin with, it was noted that family businesses have that critical something that investors love—skin in the game. Also, it has been Karen’s experience that angel investors like the sense that they’re having a direct impact. They enjoy watching a company grow and prosper.
Michael pointed out a tax aspect for family business owners who are considering becoming angel investors. Buying equity in another company as an angel is a tax efficient way to transfer wealth to your children—versus a gift, which is taxable. Plus you get (sometimes much needed) diversification. It’s an advantage available to family businesses especially in dealing with sharing your wealth with subsequent generations. A key point now that it looks like the estate tax is coming roaring back and the amount you can transfer tax free is being lowered significantly.
When Michael was asked to envision the ideal angel investor and their role, he replied, “One in which the check doesn’t bounce.” A statement that has the advantage of being funny and true. He went on to say that an ideal angel identifies a specific role within the company—if any. “Smart money sometimes means doing nothing,” he said. He also likes those angels who develop a personal relationship within the business.
So, how to start? Of course, begin with your circle of friends who filter things for you, your trusted advisors. “Let people know you’re open for business,” Michael urged. Also, set specific criteria. For instance, decide whether you’re willing or not to go to, say, Chattanooga where the angel is headquartered.
Karen chimed in with the advice to make sure expectations are in sync. “Expectations need to be clearly stated,” she said. “Who has control?” You will want to recognize that perhaps a new formality will be introduced into your business—a business plan or a fully-developed management team, for example. “There will be a trade-off of control,” she advised, “A new shareholder will want some rights.” She also pointed out that, as the business owner, you need to ascertain how you will return money to the angel investors to compensate them for the risk they assumed.
Regarding angel investors versus banks. According to Michael, angels swoop in when the banks say no. “Banks are generally cheaper, so try there first. If you can get money from a bank, take it,” he encouraged. He also made the distinction between venture capital and private equity. “Venture capital historically is about building value by encouraging innovation and growth. Private equity is about financial engineering, that is, lowering the cost of capital to create value,” he said.
In pulling together your trusted advisors in an angel investment scenario, Karen advised, “It is very important to have a board made up of more than your attorney and CPA—people who work for you who may have their own agenda.” She suggested looking for veterans in industries that are complementary to yours. Michael agreed—seek out people who have been in that seat before, he said. Successful entrepreneurs, for example. His Start-Up Lounge, for instance, has a free monthly luncheon for angel investors where you can listen to some war stories.
In the imaginary plus and minus column exercise, angel investing came out a clear winner. Among the pluses:
- The money. “It’s green!” Karen laughed. And Michael continued, “Family-owned businesses turn to strangers—banks, angels—when the three Fs have been exhausted: friends, family, and fools.”
- Expertise. According to Karen, when expectations are aligned, it works to tap into the business acumen of the angels. But you do need to be clear on what each party wants—just the money or also the expertise? Michael said, “You need come-to-Jesus meetings, early and often.”
- The demand for an outside board. When you have a downturn like we’re in now, a great board will help you step back and take in the big picture. As Karen said, “They may not have the answers, but they can ask the tough questions.”
Please download this lively discussion to hear the minus column and all of the other great insights including details of all of the great resources available in the Atlanta community.
Michael S. Blake, CFA, Director of Valuation Services, Habif, Arogeti & Wynne, LLP, http://www.hawcpa.com , 404-892-9651
Karen Robinson Cope, Managing Partner, Atlanta Technology Advisors, 770-329-3630, Krobinson@ata-6.com
Michael Blake and Karen Robinson Discuss Angel Investing and the Family Business
If you follow start-ups in Atlanta at all then we know you have heard of this week’s guests. Michael Blake is co-founder of Start-Up Lounge and Director of Valuation Services at Habif, Arogeti & Wynne, LLP, and Karen Robinson is a serial entrepreneur, philanthropist and angel investor in family-owned businesses.
Our show will look at angel investing from two viewpoints. One, how can you diversify your family’s wealth by becoming an angel investor. And two, with banks saying no and private equity sometimes being a option that means the loss of your autonomy, could an angel investor be a good source of capital to grow your business?
You won’t want to miss the very lively discussion that we know will open your mind to possibilities. Have a paper and pencil nearby—this discussion will be chock full of useful information, with a heavy dose of inspiration as well.
Our guests:
Michael S. Blake, CFA, Director of Valuation Services at Habif, Arogeti & Wynne, LLP
Michael S. Blake, CFA, is Director of Valuation Services at Habif, Arogeti & Wynne, LLP. He has fifteen years of valuation experience including transaction support, fair value accounting, litigation, and fairness opinions. He also has four years of experience in managing and performing assignments on FAS 123(R) stock option and warrant valuation, FAS 133, hedging instrument evaluation, FAS 141, purchase price allocation and FAS 142, good will impairment testing.
Michael’s industry experience includes information technology, medical devices, drug development, computer hardware, electronic entertainment, telecommunications, broadcasting, publishing business services, e-commerce and Internet-driven services, aerospace, paper & timber, beverage, media, manufacturing, and private equity.
He received his Bachelor’s Degree, Cum Laude, in Economics and French from Franklin & Marshall College and his Masters of Business Administration Degree from Georgetown University.
Michael is the co-founder and co-host of StartupLounge.com, an online podcast and forum resource for entrepreneurs and private company investors. He is a Nominee for the 2009 Turknett Leadership Character Award.
Michael’s professional affiliations include:
- Chartered Financial Analyst Institute
- Stamford, CT Society of Investment Analysis (SSIA)
- Phi Beta Kappa
- Georgia Tech/Emory TI:GER Entrepreneurship Program Advisory Board
- Ukrainian American Chamber of Commerce
Michael S. Blake, CFA, Director of Valuation Services, Habif, Arogeti & Wynne, LLP, http://www.hawcpa.com, 404-892-9651
Karen Robinson Cope, Serial Entrepreneur and Philanthropist
Karen Robinson Cope is the managing partner of Atlanta Technology Advisors, a firm dedicated to growing early stage companies. Prior to ATA, Karen was the President and CEO of Prime Point Media, one of the largest alternative out of home advertising companies in the United States. Ms. Robinson joined Prime Point Media in 2001 when the company was still in the planning stages and was instrumental in the successful commercialization of the business and sale of the business. Prime Point Media was acquired by Outdoor Partner Media, a publicly traded company located in Toronto, in August 2006.
Before joining Prime Point, Karen was chairwoman, President and CEO of Enrev Corporation, a battery management technology company that was sold in 2001. At Enrev, she led the company’s development of a licensing model for its proprietary products, established a notable roster of private stockholders, and raised more than $42 million in private equity. Prior to Enrev, she was president and CEO of Electronic Power Technology, Inc and President and CEO of Advanced Charger Technology which was sold in 1998. From 1991 until 1993, she served as vice president of sales and marketing for Amnex, a telecommunications company. At Amnex, she doubled sales in less than two years and under her leadership, the company was ranked second in its category in INC. Magazine’s fastest growing publicly held companies. Prior to that, Karen served as vice president of sales and marketing for National Data Corporation, a $900 million publicly traded company. She has also held leadership positions at AT&T and the May Company where, at 23, she was the youngest divisional sales manager in the company’s history.
Karen holds a BA in economics and political science from the University of Redlands. She is a member of the Board of Counselors of the Carter Center, as well as a board member of a number of companies and non-profits. She is the past president of the Technology Executive Round Table, and a protégé in the Committee of 200, the premier Women’s National Professional Organization. In 2000 she was honored as the Georgia Technology Woman of the Year and Wireless Weekly named her one of the top 20 Women in the wireless industry. She is a frequent speaker at both the regional and national level where she has spoken at MIT, Georgia Tech, Harvard and Emory Universities. She is also a frequent judge, most recently at the Ernest and Young Entrepreneur of the Year.
Ms Robinson is married to Richard Cope, also a serial entrepreneur who is the CEO of Nanolumens, the leader in flexible displays. They are parents to Alexandra Mara and live in Duluth, Ga. They are actively involved in Perimeter Church and supporting micro lending in both Africa and Central America.
Karen Robinson Cope, Managing Partner, Atlanta Technology Advisors, 770-329-3630, Krobinson@ata-6.com
Recap: Vision, Strategy and Succession with Kirk McMillan, Former President of Family-Owned Twelve Baskets, Inc.
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Meredith Moore hosted Kirk McMillan on the June 24, 2010 Family Business Radio’s weekly program, while her co-host, Pat Romboletti, was out of town. Kirk is the former president of Twelve Baskets, a business founded by his father that is one of the leading wholesale food re-distribution companies in the Southeastern United States.
As with many children of families who own businesses, Kirk started in the business as a youngster. One of his first duties? Picking up and taking out the trash. When he formally joined the company, he began in accounting which his mother ran at the time. From there he moved to the President’s position where he took control of management development and strategic planning.
Not surprisingly, a mission statement is near and dear to Kirk’s heart. Like no other document, it establishes a common understanding among the family and employees about what the business provides to their chosen industry. Kirk warned against using cookie-cutter mission statements. He thinks you get into hot water pretty quickly when you put out a mission statement and then don’t abide by it. “But establishing a mission statement encourages the process, the conversations, so everyone is clear on the purpose of the business,” he said.
Kirk went on to list the three essential parts of a successful business, all of which he thinks provide vital feedback—both positive and negative—that a business needs.
- A strategic plan. It starts with a mission statement that needs to have clarity of purpose. A business also needs a feedback mechanism that puts processes in place to tell you whether you are achieving that purpose. Another important element is a business’s ability to adapt to the feedback—how it is used to make corrections, to further the long-term goals.
- Board of Directors. These are the (hopefully) outside people who bring their experience and expertise to guide the business. They keep you accountable and are responsible to the shareholders. Kirk suggested they need to meet 3-7 times a year, but cautioned that you don’t want to get to the point where the board runs the business. He encourages businesses to install a board as soon as possible to help avoid the “leadership crucible,” where the founder has to continually make high-stress decisions that leave them feeling isolated.
- Family meetings. This formalized structure gives the family a voice where they have an opportunity to ask: as shareholders, are we getting our needs met? Kirk thinks 2-3 meetings per year are sufficient
Kirk recently left Twelve Baskets. Currently working on his doctorate at Kennesaw State University (and taking full advantage of the access it provides to the Cox Family Enterprise Center), he continues his involvement in family-owned businesses with his doctoral research, which includes working with the very definition of a family-owned business and what makes them different from other businesses. His research has him working with terms like family orientation, or the characteristics that make up the family—their functions, strengths, what orients them in running the business together. Also the family influence scale that looks at the power, experience and control the family has in the business. It gauges how the family permeates and impacts the organization, which makes culture one of the largest factors in the scale.
Speaking from personal experience, Kirk advised to allow plenty of time for succession, a big component of which is mental preparation. “It was about a five-year process for me,” he admitted. First came the emotional preparation—why do I want to leave? Why do I want to stay? Are the tasks required of me on the job meeting my intrinsic needs? What are the personal aspects? How will the family be impacted? This portion of the process went on for about two years for Kirk.
Then came the conscious decision to make a move, followed by relinquishing control. “We went through a co-presidency for a year. It involved my brother taking on new responsibilities, which also said explicitly to the world that we were making this transition from me to him,” he explained. From that point, he moved to CFO for a year. And then he was out the door and on to his next adventure.
As to how to define a successful succession, Kirk believes that ultimately it is more art than science. “Business is art,” he said, “and success is often in the eyes of the beholder.”
You will gain a wealth of knowledge by downloading the full podcast. Kirk has many “lesson’s learned” and an abundance of insights unique to a family business from the perspective of someone who has been the part of a very successful one.
Kirk McMillan, former President, Twelve Baskets email: mcmillan.kirk@gmail.com
Vision, Strategy and your Family Owned Business with Kirk McMillan, Former President, Twelve Baskets, Inc.
Our guest on Thursday, June 24 is Kirk McMillan, former President of family-owned Twelve Baskets. Under his leadership, the company achieved exponential revenue growth and +900% increase in customers.
Kirk will discuss the role establishing a clear vision, strategic creativity and management development based on integrity played in the success of the company during his tenure. But the story doesn’t end there. Kirk left Twelve Baskets after 13 successful years and is currently a Doctoral student at Kennesaw State. He will share the process that led to that path and will discuss the topic of his research-strategy and strategic thinking.
You will come away with valuable insights about running, growing and leaving a successful family owned business and will here how a clear vision combined with a well defined and executed strategy can transform your family business as well.
Our guest:
Kirk McMillan
As second generation President of Twelve Baskets, Inc. for 13 years, Kirk built his family business, based in Atlanta, GA, into one of the leading food re-distribution organizations in the southeastern United States. After a two-year succession plan, Kirk turned over the family business to his brother. Currently, Kirk is enrolled in the doctoral program at Kennesaw State University, researching family business strategy.
A lifelong resident of Atlanta, Kirk resides in Smyrna, GA with his wife of 16 years, Kristi, who is the Director of the Cox Family Enterprise Center. Kirk is a graduate of The Citadel in Charleston, SC and received his MBA from Kennesaw University. He is a member of The Academy of Management, Greenleaf Center for Servant Leadership, Family Enterprise Research Association, Technology Association of Georgia and the Family Firm Institute.
Kirk McMillan, former President, Twelve Baskets email: mcmillan.kirk@gmail.com
