As someone who has long been a fan of Firestone Walker’s 805 beer, I was thrilled to have the opportunity to visit their brewery in Paso Robles, California and talk with co-founder David Walker and CEO Nick Firestone. In this article, I share reflections and insights gained from my visit, exploring what it takes to build a multi-generational family business.
Build With Legacy In Mind
Just as clearly defining your goals is important in personal financial planning, so it is in starting a business. To withstand the tests of time, you should understand that it’s not just about immediate success, but also about building a legacy that future generations can carry forward.
A strong mission statement and a clear set of values are essential for ensuring that your business stays true to its roots even as it evolves. For example, Firestone Walker is guided by the mantra, “Beer Before Glory.” From its humble beginnings, the company grew by sticking to this mission of prioritizing quality beer above all else. It emphasizes that the product must come first, even when it requires difficult decisions or investments. What co-founder David Walker describes as “a sort of a dysfunctional, whimsical phrase” makes sense to everyone at the brewery. “It basically says that if you’re making any decision, lean towards the beer. Because that’s the ultimate arbiter of what we do,” Walker explains.
This is very important: You should start with a clear and concise mission statement. If everyone understands and takes it to heart, the mission statement can guide decisions for generations to come, and ensure that every business practice aligns with these values. You should also do away with thinking of improving this quarter’s numbers and instead approach each decision with the next 50 to 100 years in mind. This long-term perspective will help future leaders make decisions that stay true to the legacy you’ve worked hard to build.
Involve Family Members And Future Leaders Early
You should ensure the next generation is actively involved and prepared for leadership, so when they take the helm, they are familiar with the business’s ins and outs. This creates a smooth transition and helps them appreciate the company’s culture, values, and operations.
For example, Nick, the current CEO, a son of co-founder Adam Firestone, started as a dishwasher in the brewery’s tap room. “I grew up with the brewery in the background,” recollects Nick. After pursuing an independent career path –joining the Marine Corps, attending business school, and working in consulting –he was interviewed by David to become COO in 2020, a position Nick held for four years before becoming CEO. This allowed Nick to gain valuable life skills and experience from within and outside the business.
Other ways to involve family members include integrating them into day-to-day operations. This can mean having them work in different departments, such as production, sales, marketing, or finance. By rotating through different roles, future leaders build relationships across teams and acquire a well-rounded perspective of how the business functions. You can also involve them in strategic meetings and long-term planning sessions, where they can contribute to discussions about the company’s future direction. Encouraging future leaders to take part in these high-level conversations prepares them for leadership while helping them feel more connected to the company’s mission.
Create A Mentorship-Driven Environment
In relation to involving family members and future leaders, you should also focus on passing down knowledge, skills, and expertise from one generation to the next. A mentorship-driven environment strengthens the business by enabling the next generation of leaders to learn from seasoned veterans, avoiding common mistakes, and accelerating their own growth.
To create such an environment, ensure that experienced leaders actively share their knowledge with younger family members or employees. This could involve formal mentorship programs or informal relationships where knowledge is passed through day-to-day interactions.
By fostering a culture of mentorship, you ensure that your legacy is embedded in the company and that the next generation of leaders can continue building on it.
Celebrate Milestones And Challenges
Whether it’s reaching a sales target or launching a new product, celebrating milestones and challenges create a sense of accomplishment and reinforce your company’s goals.
For example, Firestone Walker’s journey from a small brewery to a major player in the craft beer market is a story of overcoming challenges, from scaling production to maintaining quality as the company grew. “We had this idea of brewing 300,000 barrels in a three-year period,” recalls Walker. “It brought us together. From the merchandiser out in the field, to someone buying malts or bottles in our procurement side.”
“It was a period where we had a challenge, accepted it, and we got through it,” adds head brewer Dustin Kral, who was with us during a stage of the tour. “It was actually really awesome,” Kral says with a smile.
As you build your multi-generational business, make a point of celebrating both successes and struggles. This helps future generations and employees understand the importance of perseverance and ensures that your team remains motivated through every phase of growth.
Be Adaptable
The business world is ever-changing, with evolving market demands, technological advancements, and shifting societal values. A business that refuses to adjust to new challenges or becomes too rigid in its approach is unlikely to survive, let alone thrive, over generations.
Your business must be flexible in how it approaches operations, strategy, and even its product offerings. Adaptability means applying your core values—whether that’s quality, customer service, or innovation—in new ways as the world around you changes. While the principles that define your business should remain steadfast, your methods, products, and technologies will inevitably evolve to stay relevant.
The rise of non-alcoholic beverages, for example, has been driven by an increasing demand for healthier alternatives. Initially, Firestone Walker hesitated to enter this market, but the company eventually recognized the opportunity to meet changing consumer preferences. This ability to pivot and explore new products ensures that a business remains relevant and responsive to its customers.
Learn From Other Industries
Do not confine yourself to your niche. Lessons can be learned from everywhere, and industries outside your own often offer fresh perspectives on how to build and sustain a multi-generational business.
For example, when I asked David Walker who he looks up to in terms of those doing it right for building generational businesses, he said the farming industry. Farmers instill a deep respect for the business and its values from an early age, often involving their children in the daily work and decision-making processes.
Benchmark and compare your business practices, performance, and strategies to those of leading companies in other sectors. This process helps identify best practices that can be adapted to your own operations. By examining how other industries handle challenges like succession planning, customer engagement, and operational efficiency, you can uncover valuable insights that might not be immediately apparent within your own field. These insights can help streamline processes, improve decision-making, and ultimately guide your business to sustained success over multiple generations.
Final Thoughts
Building a multi-generational family business is no easy feat. Prioritize a strong mission, involve future leaders, foster mentorship, celebrate milestones, embrace adaptability, and learn from others. By doing so, you can create a legacy that thrives for generations.