[trees]

Just looking for some advice...

I took the job here 5 years ago on the promise that the owners were getting ready to retire and were implementing a program to hand stock in the company over to the employees within 10 years.

I'm now managing the retail nursery, am the primary landscape designer, network administrator and the employees' go-to guy. I love what I do and am really good at it, but the stock transfer has slowly tapered to nothing last year, the owner continues to micromanage and is resistant to hiring another designer, foreman or anyone else that might help the business pick up, and my wife, who is a teacher, continues to kick my ass come W-2 time.

With a 1 year old daughter at home, I'm really concerned for the future of the business and my family...

Advice???

[ianc]

Hi Jesse

Tough situation to be in!
I would consider your first option is to confront your employer and explain that you are considering your future options and require a detailed “Exit Strategy” from them. It would contain a date when they are officially gone to happy retirement, how the transition or employee stock is to be distributed and the associated costs.

I imagine the employer is hanging on to the business because you have made it profitable and less of a headache for them on a day-to-day basis.

If there is a threat that you are considering moving on to possibly becomes a competitor this may spark their interest.

One of the magazines had an excellent article on how a key employee did exactly this and suggested to his employer that “they seriously consider him owning a piece of the company” normally there is a buy in cost but if you can set a profit target and exceed that target this should count towards your buy in.

Just my .02

[Stonehenge]

I like what Ian suggests here. I had a client suggest this idea to one of my guys, who of course thought it was a great idea. However, he was and is nowhere near able to assume the responsibilities of a part owner.

You, on the other hand, seem to have a pretty firm handle on this, and I would imagine Ian is pretty close to the mark on what is happening there.

I would also recommend being straightforward and lay your cards on the table, and do it in a way that you don't back the owners into a corner. Gauge their response, then take action.

I wish the best of luck to you - we have a little one, too, so I can understand where you're coming from.

[ianc]

Jesse

There are creative ways to work towards buying into the company without a assuming a large $$ burden. I am not versed on all the methods, however my opinion below

Many may will disagree with me on this point, however here goes:

You being a key person in the organization, I would look over the prior company financials and look for a sales growth trend around the time you started moving up the food chain and where the company stands right now. Determine the growth in sales for these years and project where you intend to take the company over the next three-year period. Factor in the desire for new hires such as a new designer etc to assist in adding to that growth. Tell the owner with your plan you will see?? % Growth and associated profits over the next 3 years and that to make this happen you want more control in certain management areas and at the end of the three years you want a % ownership of the company (put in writing with Lawyers). Make the % of ownership on a sliding scale to growth/profit, and then go an blow the doors off, give it a good honest 3 years and will have something to show for it, your new partners should be happy provided you meet projections and you have not spent a penny.

[Stonehenge]

I think that's a good way to show them you mean business; I would just be fearful that if you fall short of the goal, the owner might be inclined to take the added revenue and run.

[jwholden]

I think the talk with the boss is a good idea as well. I suppose it should happen before the season gets too crazy and the boss feels like your putting him in a bad spot.

Perhaps you should send out some feelers and keep your options open in case things don't go well for you. You do seem like a great asset to the company, but we all think we are and have no idea what is going on inside our bosses head. Sending out feelers could also gauge your worth. Though I wouldn't jump ship for a mimimal difference.

[trees]

I really appreciate the advice.

I've actually asked (read: told) them that they need an exit strategy but never have gone into the detail you suggest. Profit goals are a little tough, however, as the owners have NEVER HAD A RUNNING IDEA AS TO THEIR COMPANY'S FINANCIAL STATUS!

Again, this is another area I've tried to change with the addition of an elegantly simple software solution (that doesn't get used) and positioning of a key employee to take over billing / payables (which has only half happened). Without any job costing, inventory valuation or at least monthly P/L statements, it's hard to show how improvements are occurring. The company's been around for 42 years and for a long time was the only game in town, so it became financially solvent A LOOOONG time ago.

It's pretty clear though that I need to lay things out in black and white, no mixed messages.

Thanks again and if you have any other sage words, please feel free...

[trees]

Oh, by the way, it IS spring here (zone 8). I'm not thinking of doing anything radical right now, just letting loose with some frustration and giving some forethought to slower times...