“Embracing Employee Ownership: My Experience Of Selling to Employees.”
After three decades of guiding my landscape business from a humble startup to what it has become today, I’ve come to appreciate the profound truth in the saying, “Getting Out Is Harder Than Getting In.” However, as I end my tenure and leave the business in the capable hands of deserving others, this journey has also shown me the incredible value of involving employees in all business operations, including ownership. Over the past six years, I’ve successfully transitioned four of my employees into co-owners, and this experience has been both rewarding and enlightening.
The Excitement of Getting In
Starting a business is exciting. The early days are driven by passion, ambition, a sense of possibility, obliviousness, addiction to achievement, and everything in between; every new project feels like a victory, and every challenge is met with a “let’s do this” attitude. In the landscape industry, this often means working long hours, getting your hands dirty, nurturing aching body parts, and building relationships one client at a time. The obstacles in those initial stages are tangible and often immediate—finding clients and employees, managing cash flow, and working on little to no sleep for far more than what could be considered healthy.
For me, entering this business was marked by a need to earn a living and, more importantly, as I now see it, a relentless drive to create something meaningful. The growth was organic, fueled by a commitment to quality and a deep love for transforming outdoor spaces. However, as the business grew, so did the responsibilities and complexities, and as luck would have it, those challenges were right up my alley.
The Realities of Staying In
Having owned Creative Roots Landscaping for 30 years has involved more than maintaining the status quo. It required continuous adaptation to market changes, evolving customer expectations, and A LOT of personal and professional growth. The Great Game of Business philosophy has been instrumental in our success, fostering a culture of open-book management (OBM) and shared responsibility among employees. We learn, play, and have a stake in the outcome, whether we win or lose.
Implementing this approach meant that every employee understood the financial mechanics of the business, from cost control to profit margins. It cultivated a sense of ownership and accountability crucial for building the small business we are proud of today. Yet, despite decades in the business, I realized that I didn’t truly know my business as well as I thought until it was time to sell it. Engaging my employees more deeply revealed insights and perspectives I had previously overlooked, making me aware that my learning journey was far from over.
Learning Together
Through The Great Game of Business, I involved my employees in the business’s financial and operational aspects from an early stage. This transparent and collaborative approach was not just about teaching them the intricacies of the business; it was also about learning from them. Their unique perspectives and innovative ideas often challenged my assumptions, strategies, and personal ways, leading to a broader exchange of knowledge and growth for all of us. We were never all the same, but we were on the same page, and it was often clear that at the top of what needed to change and grow was me personally. I had to embrace new ways of thinking, relinquish some control, and be open to continuous learning and improvement.
The Challenge and Reward of Transitioning Out
Transitioning out of a business you’ve built from the ground up is significantly more complex than starting it. It’s not just about finding someone to take over; it’s about ensuring the business thrives in your absence. This became particularly evident when I brought employees into ownership over the past six years.
The process was multifaceted and eye-opening. It involved financial restructuring, legal work, and, most importantly, allowing my employees the time and space to work into their new owner roles. Something I am still learning to do gracefully. This transition was not just about transferring shares but about instilling in them the mindset and skills necessary to lead and grow the business. I now own only 20% of the company, a significant change requiring me to fully trust the team’s abilities and the systems we’ve implemented. Reflecting on the transition to date, I would have to say my biggest stumbling block was letting go of the thought that once they became owners, they would act more like me. To that end, I am now glad I didn’t get what I was asking for!
High Involvement Planning: A Framework for Success
A key part of our successful transition and what keeps us all on the same page has been what we call High Involvement Planning (HIP). HIP is a framework for setting strategy, building our plan, dealing with market changes, and enabling everyone to participate. It’s where we tap into the collective knowledge we have worked so hard to create and raise the level of thinking by appealing to the higher level of thinking that normally lies dormant in companies that a method to, or are not willing to, be transparent and inclusive. It works because of the simple truth that “People Support What They Help Create.” As long as HIP is utilized as one of the tools to sustain the business, I am confident the company will continue to thrive.
Employee Ownership: A Double-Edged Sword
Employee ownership has been both a rewarding and challenging experience. On one hand, it has ensured the continuity of the business and preserved its core values. On the other hand, it required a significant investment of time, change, and resources to prepare employees and me for ownership. This journey could only be taken with the willingness of all to understand and agree on the bigger picture and a strong belief that ultimately, The Company Was the Product.
The Great Game of Business framework provided a solid foundation for this transition. By involving employees in the financial and operational aspects of the business early on, they were better prepared to take on ownership roles. This inclusive approach fostered a deeper connection to the business and a strong commitment to its success.
For our version of ownership, we maintain an approximate ratio of 1:5 owners to employees. This ensures a balanced distribution of responsibilities and keeps the team dynamic effective. I discovered that bringing employees into ownership might cause more problems, but if done right, they are better ones rather than bigger ones. These problems arise from growth and innovation, from employees taking the initiative and driving the business forward with fresh ideas and renewed energy. They are problems rooted in the basic human desire to win, ambition, and creativity and are far preferable to those born from ignorance, mismanagement, entitlement, or other unproductive, poor, and completely curable cultural issues.
The Emotional Aspect of Letting Go
Beyond the more technical challenges, there is an emotional aspect to stepping away from a business you’ve nurtured for decades. It’s about letting go of control and trusting others to build on the foundation you have worked hard to create. This emotional transition is perhaps the hardest part. It’s about finding peace in knowing that the business is in capable hands and your different role, if you plan to maintain one, still holds value.
In conclusion, while getting into the landscape business was a journey of enthusiasm and determination, transitioning out has been more complex and rewarding. The move to employee ownership has been a critical part of this journey, ensuring the business’s continuity and preserving its values. As I step back, I do so with the confidence that the existing organizational ecosystem will continue to thrive, nurtured by the new generation of leaders who believe in the power of being transparent and inclusive. And though I’ve learned much over these 30 years, I humbly acknowledge that there is always more to learn in the ever-evolving business landscape. I encourage other business owners and am always happy to help them consider this path—not just as an exit strategy but as a way to reward and empower the people who have helped build the company.
About Me
Through my experiences, I have been fascinated by business and all it offers to improve people’s lives. From working on the shovel, business visioning, and everything in between to sharing my experiences through personalized coaching services, I aim to help other owners and their teams work on their businesses, increase profits, and have more enjoyment while doing it.
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