Why is Succession Hard?

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285

Tue, 06 Jan 2026 09:00:00 +0000

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Why is Succession Hard?

Succession planning is one of the most emotional decisions a construction business owner will ever face. It’s not just about money or ownership — it’s about identity, family, and legacy.

In this episode, Dominic Rubino speaks with Josh Baron, co-author of The Family Business Handbook, to explain why so many transitions fail — and how contractors can avoid common mistakes.

The Real Reason Succession Feels So Hard

For founders, the business isn’t just a job — it’s who they are. Letting go raises tough questions:

  • Who am I without the company?
  • Can I trust the next generation?
  • What happens to employees and customers?

Avoiding these questions only makes the transition more painful later.

The ARC Model: A Better Way to Think About Succession

Josh introduces the ARC Model, which focuses on three critical areas:

  • Assets – Who owns the business?
  • Roles – Who leads day-to-day operations?
  • Capabilities – Is the next generation ready?

Most families only focus on one — and that’s where problems start.

The Four Rooms Framework

Family businesses need four separate “rooms” for decision-making:

  1. Management Room – Running the business
  2. Board Room – Strategy and leadership decisions
  3. Owner Room – Big ownership and value decisions
  4. Family Room – Relationships, not operations

When these conversations get mixed together, conflict grows fast.

Why Avoiding Conflict Makes Things Worse

Many families try to “keep the peace” by avoiding tough conversations. According to Josh, that causes just as much damage as open fighting.

Healthy businesses address issues early, clearly, and intentionally.

Final Thoughts

Succession doesn’t have to destroy families or businesses — but it does require planning, honesty, and structure.

👉 Listen to the full episode to hear real-world examples and frameworks you can apply in your own construction business.

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