At our recent Fireside Chat event, we had the privilege of hearing from Judy and Jeremy Hogel, the dynamic mother-son duo who lead MegaPros, a family business that faced unexpected challenges after the sudden loss of Joe Hogel, husband, father, and founder of the company. Moderated by Deanna Salo, this intimate conversation gave us a rare glimpse into their emotional journey and the leadership lessons they learned while navigating both personal grief and business challenges. Below are some key takeaways and memorable moments from the event that will resonate with anyone leading a family-owned business.

Key Takeaways:

1.    Succession Planning Is Non-Negotiable

• The Gift of Preparedness. Joe Hogel left behind a handwritten letter “If I Died Yesterday” back in 2013, outlining what Judy and Jeremy needed to do in the event of his passing. This foresight helped the family stay organized and focus on moving forward, even when emotions were high. Judy later took inspiration from this and wrote her own letter for her loved ones, offering both emotional closure and a practical guide.

“The best gift I got from Joe was that letter… In my grief, I had a clear task list to follow. That was his final act of love.” – Judy

• It’s more than just paperwork. Judy emphasized that while estate plans and succession documents are essential, regularly reviewing and updating them is just as important. These plans can’t just sit on a shelf – they need to be actively integrated into the family business structure.

2.    Lessons in Estate Planning

• Funding Trusts Is Essential. Judy openly shared a major oversight they encountered: while their trust was well-written, none of their assets were titled under it, which forced them into probate. This is a common mistake, but an avoidable one with the right attention.

“We had the trust, everything was written in the trust, but nothing was funded. Nothing was titled in the trust. Which meant that I went to probate.” – Judy

• Beneficiary Designations Matter. The Hogels learned the importance of properly designating beneficiaries for 401Ks, life insurance policies, and HSAs to keep assets outside of probate and reduce tax liabilities.

“Ask the question: If I died yesterday, what’s going to be the implications to my significant other? What kind of hoops are they going to have to jump through?” – Jeremy

3.    Invest in the Right Advisors Early

Jeremy shared candid insights about the mistakes they made during the transition period. One key mistake was not hiring the right advisors early enough: “There was no way Joe was going to spend money on something like succession planning,” Jeremy said, acknowledging their initial hesitation to invest in professionals with the necessary expertise.

He also emphasized that cutting corners when it comes to hiring expert advisors was one of their biggest mistakes. “You get what you pay for. Not hiring the right people for big things was one of our biggest mistakes.” – Jeremy.

Jeremy praised the EFBC’s network of advisors – Strategic Partners, describing them as “the crème de la crème,” and encouraged others in the room to tap into this invaluable resource early on.

4.    Leadership Must Be Clearly Defined

While Joe had been preparing Jeremy to step into a leadership role, it became clear after his passing that there needed to be more formal communication about leadership succession within the company. Jeremy noted that while the team knew he would take over, having clear documentation of leadership responsibilities is crucial to avoid confusion.

“Joe was preparing me, but we didn’t have everything formalized. Now I understand the need for clarity in leadership transitions.” – Jeremy

5.    Adapting Company Benefits

Learning from Joe’s death, MegaPros quickly amended their policies, such as increasing life insurance for employees and adjusting profit-sharing plans to ensure that if an employee passes away, their family would receive their share of profits.

6.    Balancing Emotion and Business

Jeremy reflected on how challenging it is to separate emotion from business, especially in a family business setting. MegaPros initially leaned heavily on numbers and metrics, but after Joe’s passing Jeremy soon recognized the need to prioritize the human side as well to truly uphold their culture

“It’s not just about numbers. If you’re not good, the business isn’t good. We have to figure out the people part first, then the money will follow.” – Jeremy

7.    The Power of Community in Times of Crisis

When tragedy struck, the EFBC community rallied around Judy and Jeremy, providing both emotional and practical support. From peers reaching out to help with daily tasks to friends offering a listening ear, this sense of belonging made a critical difference during their darkest moments.

“The people in this room, the people of the EFBC, started as just a group of folks who wanted to learn… but over time, they became lifelong friends and family – people who showed up for us in our hardest moments.”– Jeremy

The Hogels’ journey after Joe’s sudden passing serves as a powerful reminder of the importance of succession planning, community support, and financial resilience. Their story shows how a family business can not only survive but thrive in the face of tragedy, as long as the right foundations are in place. Plan for the unexpected, surround yourself with the right advisors, build financial resilience, and lead with both your head and your heart.

For those who couldn’t attend, we hope these key takeaways provide valuable insights you can apply to your own journey as a business owner or entrepreneur.

Save the Date: We’ll continue this Fireside Chat series on December 11, 2024 – virtual Fireside Chat “From A Minute to Think to Leading the Way” featuring Julie Funt, a renowned keynote speaker, who will share insights on leadership, productivity and well-being; and February 13, 2025 – fireside chat focusing on mergers and acquisitions (M&A), featuring our members Jim Flanagan and Mark Wesa. Don’t miss out!

Three Things You Should Be Doing Today To Support Your Middle Managers

They are the figurative – and sometimes literal – middle children in family and entrepreneurial businesses. Nestled between senior management and frontline team members, middle managers are often the peacemakers and pleasers of the organization (much like the middle children in a family.) Straddling both strategic decision-making and day-to-day operations can leave middle managers struggling to fulfill multiple roles and responsibilities, especially when operating with limited resources and staff. Here are three ways you can purposefully support the team members who often serve as the glue for your organization.

Nurture Their Growth

Team members are often promoted to middle managers because they are great at their job. But being great at performing a role doesn’t automatically translate to being great at managing a role. Support your middle managers as they take on these new responsibilities by offering regular training sessions or workshops focused on key areas such as active listening, having difficult conversations, providing actionable feedback, and problem-solving. A great place to start is EFBC’s The Art & Science of Executive Leadership Program, which aims to develop operational managers into strategic thinkers.

Give Them A Place To Belong

It can be isolating to suddenly be the supervisor of colleagues who used to be your peers, and often may also be your friends. Give your middle managers another peer group by forming an internal company Forum especially for them. Not only does a Forum give middle managers a safe place to share trials and triumphs, but it also has the added bonus of knocking down silos between departments.

Let Them Shine

Once you give them the professional development and community they need, take a step back and empower your middle managers with decision-making authority. By entrusting them within their areas of responsibility, you are fostering a culture of autonomy, accountability, and innovation. Together, set the boundaries within which they will operate and then expect them to act decisively and take ownership of their departments. And should they falter or fail? Support that too. Your middle managers need to feel empowered to take calculated risks and explore new ideas without the fear of harsh consequences. That is how they grow even more to some day take over your role!

Want more details on our Leadership Program or looking to launch a middle manager Forum at your organization? Contact Liz at liz@myefbc.com.