A personal wake-up call for owners banking on family succession
Meet Steve – The Owner Without a Successor
Steve leans back in his office chair, staring at the framed photos on his desk. In one, he’s standing outside his modular component factory, arms crossed, proud and confident. In another, his son, Jake, is beaming in a graduation cap from Stanford. Jake was always the smart one—the one Steve thought would take over the family business one day.
That was the plan.
Only, Jake never once asked about the business. Never spent summers working in the factory. Never showed the slightest interest in modular construction. Instead, he went off to Silicon Valley, chasing big paychecks and stock options, designing software Steve barely understands.
And now, at 62, Steve is sitting here with a reality he’s avoided for years:
Jake isn’t coming back.
There is no heir to the business.
And Steve has no idea what to do next.
Sound familiar?
If you’re an offsite business owner hoping your kids will take over one day, it’s time for some tough love. Most of them won’t. And that’s not their fault—it’s yours for assuming they would.
The Harsh Truth: Your Kids Have Their Own Dreams
For decades, offsite construction has been a family business. Factories, modular home dealerships, and prefab component shops were passed down like family heirlooms, from father to son, generation after generation.
But times have changed.
Your kids grew up in a different world than you did. They saw you miss family dinners, get stressed over payroll, and spend weekends handling factory problems instead of relaxing.
They don’t want that life.
They want:
✅ Work-life balance (something you never had).
✅ A career that excites them (and modular trusses don’t).
✅ Opportunities beyond the family business (because you raised them to dream big).
And yet, I’ve seen too many offsite business owners cling to the idea that their children will “come around” and take over.
They won’t. And if you’re banking on that, you’re setting yourself up for failure.
Case Study: The Builder Who Groomed His Son—For Nothing
Let’s talk about Mike, a second-generation modular builder who spent years preparing his son, Ben, to run the company.
Ben worked summers at the factory. He knew the products, the customers, the processes. Mike was sure Ben was ready.
Then, after college, Ben took a job at a national real estate firm instead.
Mike was blindsided. He had no backup plan. No other successor. No one trained to step in.
Within five years, without a clear future leader, Mike’s company was sold off to a competitor—a company Ben now worked with on the real estate side.
Mike had assumed that because Ben grew up in the business, he would want to run it. But he never actually asked.
The False Hope Trap: “They’ll Come Around”
If you’re over 50 and running a modular business, I’ll bet you’ve had this thought at least once:
“They’ll change their mind.”
It’s the biggest lie we tell ourselves.
Maybe your son occasionally asks about the business. Maybe your daughter helped out one summer. Maybe they say nice things about what you built.
But none of that means they actually want to run it.
And even if they do say they’re interested, here’s the hard question:
Have you actually prepared them for leadership?
✅ Have they been trained in business management?
✅ Do they know how to handle a crisis when materials are delayed?
✅ Can they negotiate contracts, deal with employees, and manage finances?
Or do they just have your last name and nothing else?
The Smart Move: Find an Alternative Successor NOW
Here’s the good news: Just because your kids don’t want the business doesn’t mean it has to disappear.
You have plenty of options—if you start planning now.
1. Sell It While You’re Still Involved
- Many modular factory owners wait too long to sell, thinking they’ll just “work a few more years.”
- By the time they’re ready, the market has shifted, their health isn’t great, or the business isn’t as attractive to buyers.
- If selling is the right move, start looking at acquisitions, mergers, or industry buyers now—not when you’re desperate.
2. Groom an Internal Successor
- If family isn’t an option, look inside your business.
- Do you have a trusted plant manager, operations leader, or sales director who could step up?
- Start mentoring them today. Give them decision-making power, expose them to financials, and prepare them like you would your own child.
3. Consider an Employee Buyout (ESOP)
- Some modular businesses transition to an Employee Stock Ownership Plan (ESOP), where workers gradually buy shares and take control.
- This keeps the company in familiar hands while providing you a structured exit strategy.
4. Bring in an Outside Leader
- If selling isn’t an option and no employees are qualified, consider hiring a CEO to run the business while you retain ownership.
- This allows you to step back without shutting down.
Don’t Wait Until It’s Too Late
Steve is still sitting in his office, staring at those pictures.
He knows now—Jake isn’t coming back.
He has two choices:
1️⃣ Keep hoping Jake changes his mind (while running out of time).
2️⃣ Make a real plan to secure the company’s future.
He picks up his phone and calls his plant manager—the one guy who’s been with him for 20 years, the guy who knows the business inside and out.
It’s time to start talking succession.
What about you? Are you still waiting for your kids to “come around”? Or are you ready to make a real plan?
Because if you don’t—someone else will. And you probably won’t like their decision.
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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.
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