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October 29, 2021

Crawley uses 'Rich or Rule' strategy to plan succession

By Melissa Lowery

Doug Crawley was in the third chapter of his career, running two businesses, when he encountered the idea of succession planning. Like many entrepreneurs, he was focused on building successful businesses that could support his family and provide for retirement.

“When I started Staffing Synergies [Inc.] in 2008, I gave no thought to succession planning,” he said. “My main goals were to provide for my wife and myself, eliminate debt and save for retirement. I hoped there would be something to leave as an inheritance to our three children.”

It was shortly after starting his second company, Synasha, in 2015, that Crawley started thinking about the future for both companies.

“Four or five years ago, in my early ‘70s, I began to ask myself, ‘What would happen to the companies if I could no longer work?’” he said. “It was obvious to me that my wife, who serves as CFO of both companies and is intimately involved with the day-to-day operations, could assume both of my positions as president and CEO. She would then have the option to hire managers to continue to operate both companies, or she could sell them.”

Rich or rule

Already mulling over how his business empire would carry on without him at the helm, Crawley read an article that laid out the concept of building a company using the “rich or rule” strategy. Founders that choose the “rich” goal build their company with the intention to sell or launch it as an IPO so they can cash out. Founders that choose the “rule” goal form a company that remains in the family and creates generational wealth.

“I decided I wanted to do both, with an emphasis on ‘rule’ or being able to leave a legacy,” Crawley said. “The lack of generational wealth is a monumental problem in the Black community, and I want to do something to fix this for my family. I also have a vision that one day there will be a Synergies Foundation, run by a family member, for the funding of charitable and philanthropic activities.”

Reaching these goals requires a succession plan, so Crawley got to work. He read and researched how to plan, then drafted a three-year vision for both Staffing Synergies and Synasha. Because the plan involves the participation and buy-in of family members, Crawley included them in collaborative planning.

“Eventually, all three of our sons and our six grandchildren will inherit all of the family assets, including the companies, so it was important that they be involved in determining the right course of action,” Crawley said.

The oldest and youngest Crawley sons have established careers elsewhere, although both have experience in the packaging and distribution industry. They will likely serve on the board of directors for Staffing Synergies, a parent company of Synasha.

Crawley’s middle son, Geoffrey Crawley, was already working at Synasha as vice president of business development. Geoffrey’s son, Adam Tapia, was a captain in the United States Army but indicated that he was interested in joining the family business. Crawley offered him a position at Staffing Synergies as director of business development, which he accepted. Both men are gaining experience at their respective companies and plan to earn MBA degrees in the near future with the intention that they eventually assume the roles of president and CEO when Crawley retires.

“I’m in the process of turning over more and more of my day-to-day activities to Geoffrey and Adam,” he said. “My intent is to do some in-house management training and ultimately become more of a mentor to them.”

Crawley sees succession planning as a way to ensure the companies he founded are managed in a way that aligns with his family’s values. By keeping them in the family, decisions can be made that are in the best interest of the employees and the companies, he said.

“We don’t have to get permission from anyone else. This has been particularly helpful during COVID-19 when we had to make decisions to continue to pay management employees, even when it had a negative impact on the bottom line. This also allows us to place an emphasis on helping the community, as with our afterschool program that is funded through one of the businesses.”

He may have come to the idea of succession planning later than some, but Crawley is fully committed to setting up his businesses to yield generational wealth and positive community impact.

“Proverbs 13:22 says that a good man leaves an inheritance to his grandchildren. If the succession plan is properly implemented and the companies have long-term success, then there will be a family of companies called ‘Synergies Companies’. When this occurs, what I set out to accomplish and what the proverb advocates will have become a reality,” he said.

To learn more about Staffing Synergies, visit staffingsynergies.com.

To learn more about Synasha, visit synasha.com and https://mbnusa.biz/detail/staffing-syneries-menashasuccess.