2017 has been a big year for siblings, Ashley and Eric Smith. They have recently started the legal transition of ownership of their family business, Colorado Boat Center, located in Johnstown, Colorado. In addition, the dealership is under-going a large remodel that will bring their services, products, and employees all under one roof. We had the chance to ask Ashley and Eric questions in order to learn more about the changes happening at their dealership and how their time in the industry has prepared them as they begin to take over the family business.
Q: You two just took ownership of the business in April. Congratulations! What did you do to celebrate?
Eric: To be completely clear, 2017 marked the legal transition of ownership for Ashley and me. Tom and Nancy still maintain the controlling interest in CBC. Our full transition period is cast over the next 5 years with Ashley and I purchasing the remaining shares during this time. So, the complete ownership for Ashley and I will not be fully executed until that period expires. To mark the milestone, I stored the documents in a safe deposit box and my wife took me out to dinner.
Ashley: 2 hours after we signed the paperwork I was on my way to my Spader Leadership Course in South Dakota. I celebrated at the airport with a Prime rib dinner.
Q: So you’ve both worked in the family business for a number of years now. What have you done to prepare for taking over the business?
Eric: As with many of the other next generation owners I’ve worked through each department in my tenure. This has given me a working knowledge and relatability of how each area functions independently but also the understanding of the process to keep the dealership running efficiently. A lot of what we have done over the past few years is to work with Tom and Nancy in understanding their roles as owners, the decision-making process and the delegation of various responsibilities. Tom and Nancy have built the business over 27 years through that time they have made mistakes and dealt with hardships. Much of what they are training us for is how to handle these situations and to not make the same mistakes they may have.
On a personal level, my wife and I have discussed my eventual role into ownership deeply over the years and the impact that it would have on our lives socially, monetarily and as a family unit. Many of the activities that were once a priority have been reorganized to hobbies. My perspective is that the business is organic and for it to continue to be successful I need to tend to it in the same way an athlete cares for his body or a farmer to his field.
Ashley: I feel fortunate to be partnering with my brother. For 11 years plus Eric and I have had different responsibilities throughout the dealership which has prepared us for this transition in itself. Most of his strengths are my weaknesses and vice versa. Eric is definitely more task oriented as I’m more people oriented. As owners, I think it is important to learn all aspects of the business, but it’s just as important for us split up responsibilities based on our strengths. We’re doing a 5 year succession plan. Our parents are still very much involved in the business, but they’re giving Eric and I the room to learn and make decisions on our own. All while being available when we need their expertise. I believe they are ready to step back as quickly as possible. They’re not only planning vacations this year, but they’re actually booking them too! That shows me they trust Eric and I have it handled.
Q: What would you say is the most valuable lesson you’ve learned during the transition?
Eric: Communication, don’t expect anything to unless you make your voice heard and you listen/understand the perspective that’s coming your way as well. We have 4 very different personalities within the family, with that comes a unique vision from everyone. We can’t let our feelings get hurt because this is about the business and it should not be taken personally.
Ashley: I’ve realized I can’t be taught all of the ins and outs of the business all in one day or by one specific person. I’ve had to take the initiative to learn and work with all departments throughout the dealership, ask questions, be hands on, and be prepared to make decisions when no one else can.
Q: If you could give a soon-to-be successor some advice, based on what you learned during the transition, what would it be?
Eric: Work with a 3rd party and lawyer who have no affiliation to the business to begin your succession planning. Do it early and take your time to execute it properly. Plan monthly board meetings to discuss the progress and transition of responsibilities.
Unfortunately, not enough thought goes into succession planning in a lot of family business’, especially within our industry. Often the next generation is either too impatient or entitled, the current generation doesn’t want to give up the keys, they just want to hand the keys off and run, or worse yet they pass and the family has no idea what the next steps should be.
Ashley: Communication is key. You can’t be afraid of hurting someone’s feelings. You need to be able to separate family from business and speak up when something is important to you. If you don’t understand, ask as many questions as you can until you do.
Q: You’re in the midst of a major renovation project right now. Tell us about that and what you expect it to mean for your business.
Eric: It’s ironic that this is being done as Ashley and I are taking over but it is something that we needed to do as a business to set ourselves apart and move forward for the coming years.
Over the years, we have kind of “made do” with the facilities that we have on our lot. As the business continues to grow it becomes more difficult to operate out of 3 separate buildings. Now, we’ll have everything under one roof. It’ll be clean, modern and up to date with the tools and communications that are needed by our employees.
From a customer standpoint, it’ll be fantastic. We have made a transitional shift over the last several years as our customer demographic sits on the higher side of the curve. They are coming in for an experience, just like they receive with their high-end car purchase. When they pull in on the lot and it’s dirty or outdated you’re setting off that experience in the wrong way. By no means are we building the next BMW or Mercedes dealership but we are cleaning up our appearance to be more comfortable to our customers and employees.
Ashley: We’ve operated out of three buildings on our site for 13 years. Our new facility will house all departments under one roof. Once the construction started, our showroom turned into our parts and service department forcing all of the employees into one building and to operate in tight quarters. It has been a great indicator of what will happen once we are in the new facility. Our culture is evolving and our efficiency is improving throughout all departments. We represent three of the boating industry’s top manufacturers, have a full certified staff and a list of accolades. The new building will be like frosting on the cake and set the standards for the future of our business.
Q: We’ve noticed that you guys are following in the footsteps of your parents from a lifelong learning standpoint. You’re both involved in MDCE, Dealer Certification, 20 Groups, Spader courses, and more. Tell us what role this culture of learning plays for you and your success.
Eric: The process of self-improvement is continual and the moment you think you know it all or that you’ve got it, is when you’ve begun to dig your own grave. I feel that each day we should strive to better than we were yesterday. This comes from continual education, discussion among peers, establishing standards, etc. A lot of times some of the best “new” ideas we have are picked up from other dealers and/or at workshops. All we’ve done is tweak and process them to fit our organizational needs. There is a wealth of knowledge within our industry and most people are open to talk about what works for them. The cliché of trying to reinvent the wheel, that’s what you’re doing if you’re doing it alone.
Ashley: Our parents are the epitome of dedication, hard work,and perseverance. For as long as I can remember, our parents taught us the importance of continued education, setting goals,and pushing our capabilities to new heights in anything we do. The education I’ve received through MDCE over the past several years was the starting block to learning the industry inside out. Each year, I bring back a stack of notes and work with the staff at narrowing down the most important ideas we’d like to implement in our dealership over the next year. I’ve just recently started attending the Spader 20 Group meetings. This has opened a whole new side of the business to me. Budgeting, numbers, reports, oh my! In January I began the Spader Leadership Development Program. I’ve only been to two sessions out of the five, but it has transformed my mindset both professionally and personally. The dynamics of my relationships have also changed dramatically. I’ve been able to practice and implement what I’ve been learning throughout the entire dealership all while seeing an open and positive response from my family, employees, and customers. I went into my course thinking I was going to have to make a cut in our staff. This month I will be rewarding him for hitting his monthly sales goal. This is a prime example of how my continued education helped better myself to help better my team.
Q: OK, now that you’re owners, what’s the first big decision you’ll need to make?
Eric: When I can get Tom and Nancy a scheduled day off… Seriously, we are short manpower in a couple departments so we’ve got some staffing needs to fill.
Q: What has been the most rewarding part of building a career out of being a boat dealer?
Eric: The relationships with my family, customers, other dealers and manufacturers. We are a family business and we look at all our relationships as our “business family”. It means a lot to see the smile on a customer’s face after delivery or to get an emailed picture of them out on the lake. The thought of knowing you’re providing for the employees and their families. The continual feedback and support from our peer dealers.
Ashley: My family got in the industry because we loved boating. To pass that along to other families, build lasting relationships, and share it with an industry who shares the same passion is the most rewarding part of my career.
Q: What are some things that people may not know about you?
Eric:
- I am the dog father to the cutest golden doodle in the world, Bucky. I may be partial.
- Born & raised in Colorado and have never snow skied, boarded or anything like that
- I’m an endurance junkie, completing 5 Ironman triathlons, several marathons, and a couple double crossings of the Grand Canyon.
- My dream job out of college was to be a lobbyist in DC.
Ashley:
- I love raw oysters
- I don’t share my popcorn
- I enjoy cooking
- I’m obsessed with the Food Network
- My life revolves around good food and my cat
