By Jim Nelems, Bluffton, S.C. | It is no secret that most new businesses do not survive into a second generation of owners. Marketing Workshop, a national marketing research firm headquartered in Peachtree Corners, successfully made this transition three years ago when my wife and I decided to retire after more than 40 years in marketing research. Our two firms, The Marketing Workshop and Compass Research, are now operated by our daughter, Sherri Taylor, and husband, Scott.
Jim and Dot Nelems
It was in 1972 that my wife and I founded The Marketing Workshop.
Years ago, it was not uncommon for family run research firms (as well as other industries) to have children who would eventually take over the business. However, today that is most rare. In fact, we are among the few research firms still family owned, and we like it that way.
Yet transitioning to the second generation is not merely handing over the keys. There are four common-sense principles which have to be learned, absorbed and followed.
First, always stay close to market trends and realize that changes will have to be made – like it or not. We eliminated our 160 station phone center where, before the Internet, we did over 200,000 phone interviews annually. However, we didn’t cut this center before we found a new resource for that portion of the business, saving 57 interviewing jobs. Today, more surveys are conducted over the web than by phone, where the average response rate is only nine percent; at one time it was 60 percent or higher!
Second, focus on the right target market. Use the strengths of your past and your present situation to attract the right customers and help avoid spinning your wheels with the wrong market. We found a strong untapped market, testing new menu products, for restaurants.
Sherri and Scott Taylor
Third, make sure you have the right people in the new environment. Culture fit is now equally important as skills. You have to realize that sometimes work habits will need to change. As our son David, who started an Internet company which revolutionized the way focus groups are now done, has said, “Evolve or die.”
And last, you must let the new managers run the transitioned company, which sometimes is hard to do. What if the new managers want a new logo or new marketing campaign, but the former managers do not? Ultimately, you have to trust the ‘new’ kids on the block and let them make decisions. After all, they are now in the business on a daily basis and have a good pulse on what’s going on.
As parents and first generation owners, we are pleased as to how the first three years have gone, while we relax on the river in Bluffton, South Carolina.
Now, the next job would be to get at least one of our four grandchildren interested in marketing research as a career!
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