Navigating Family Business: From Forklift to CEO

Growth Catalyst Russ Meinhardt shares about the complexities of professionalizing and eventually selling a family business. Learn how Russ rose from driving a forklift to leading the company, Old World Spices, and how he managed the intricate family dynamics along the way. Discover valuable lessons about growth strategies, dealing with private equity, and maintaining the family culture within a professional environment.

Russ candidly shares his experiences of selling the business during the pandemic, the challenges of finding the right fit with private equity, and the emotional and strategic decisions involved in the process. This episode sheds light on integrating personal beliefs in business and offers key advice for those contemplating similar transitions.

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Episode Summary

0:00 – 1:30 | Introduction

Dan Cooper introduces the podcast and guest, Russ Meinhardt.
Russ is a former CEO of Old World Spices, now a Growth Catalyst and fractional CEO.

1:31 – 3:05 | Russ’s Background

Russ started in the family business by driving a forklift.
Worked in various roles over summers, eventually joining full-time after college.
The company grew substantially over 20 years, moving across five different facilities.

3:06 – 4:50 | Becoming CEO

Russ was unexpectedly tapped to become CEO.
He was tasked with professionalizing the business to prepare it for a potential sale.
Introduced strategic hires like a CFO and head of sales.

4:51 – 6:30 | Business Model & Strategy

Old World Spices manufactured seasoning blends for food service, grocery, and BBQ products.
Strategy evolved from being “everything to everyone” to focusing on core strengths and growth opportunities.

6:31 – 9:25 | Professionalization Process

Introduced ERP systems, procurement improvements, and financial upgrades.
Focused on increasing business value for buyers.

9:26 – 11:00 | Managing Family Dynamics

Balancing family relationships with professional responsibilities was challenging.
Emphasis on preserving the family culture while integrating new management.

11:01 – 13:00 | Preparing for Sale

Took 5 years from CEO appointment to sale.
Russ emphasized the emotional and strategic aspects of getting the family aligned before going to market.

13:01 – 15:50 | The Sale Process

First attempted sale failed due to a poor partner fit.
Second attempt succeeded, though the process was grueling (daily management meetings, emotional hurdles).
Sale occurred during COVID, which amplified valuation tensions due to business fluctuations.

15:51 – 18:40 | Transition Post-Sale

Strategy changed quickly after sale; company grew and acquired new business within 6 months.
Russ transitioned out of the CEO role a year later—emotionally challenging and humbling.

18:41 – 21:00 | Lessons & Advice

Advice to family businesses: get everyone’s goals on paper, have open conversations.
Hire trusted advisors and prepare for unexpected scenarios in private equity transitions.

21:01 – 22:50 | Faith Integration

Russ shares how faith grounds his leadership decisions.
Emphasizes prayer and trusting in divine timing—even when things feel serendipitous.

22:51 – End | Closing Remarks

Russ’s contact info shared: LinkedIn & AcumenImpact.com.
Dan wraps up the conversation.