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October 29, 2021

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Ideal Group builds generational wealth

By Monica Stavish Skaggs

A30-year career often stirs up thoughts of retirement and the proverbial gold watch. However, in the case of Linzie and Jesse Venegas – 41 and 40, respectively – they’re just hitting their corporate stride.

The siblings have worked at The Ideal Group Inc. since they were 10. A multicompany empire headquartered in Southwest Detroit, Ideal was started four decades ago by their father, Chairman and CEO Frank Venegas Jr. He formed the company using seed money from the sale of a luxury car he won in a raffle.

“The business is two weeks older than I am,” Linzie Venegas said. “My mother was pregnant with me when he won the Cadillac.”

In the early years, Frank Venegas put much of his resources — and time — into growing the business. Ideal companies offer structural and steel fabrication solutions, general contracting and construction, inventory management and warranty and repair management.

“So, my brother and I were at the office all the time, underneath the desk, playing with our toys,” Linzie Venegas said. “Once I could say my ABCs and my brother could push a broom, he would say ‘Great, now you can file.’ He’d have my brother go out in the shop and start pushing a broom. It was designed deliberately because it got us into two different areas of the business.”

All in the family

Today, Linzie and Jesse Venegas are vice presidents. But just because their father is the boss, that doesn’t mean they’ve had it easy.

“My dad’s philosophy has always been if you want a better job, do a good job at what you’re doing. So, we continuously keep organically growing,” Linzie Venegas said. “For myself, I didn’t want to file forever. I learned how to do spreadsheets, PowerPoints and accounts receivables and payables. I know a lot of different functions and the software we use.”

After sweeping floors, Jesse Venegas drove a forklift. Then he learned to fabricate steel at the job site.

“With our company, we always like to home-grow our own talent. So, he kind of did it with us,” Jesse Venegas said. “We’re always bringing in people and teaching them the way we want things done. I think our hearts were with our company instead of going somewhere else.

“The funny thing is, we’re usually bouncing around to different business units. I think our dad was kind of a mad scientist,” he continued. “He trained us — myself in operations and engineering and Linzie in [human resources], accounting and finance, as well as sales and marketing. It’s nice. We kind of go shoot off in our own direction and collaborate for a half-hour or 40 minutes at least once or twice a day. We’re not very structured, and that’s how my dad has always been. Some of that, obviously, came to the next generation. I think we’re a little more structured.”

His sister added: “What’s nice is we each have our own sandboxes. We empower each other. We have done a pretty good job of showing each other respect and being extremely fair to each other.”

A larger-than-life personality, the senior Venegas, 69, remains passionate about his company and its community outreach programs. But, while he has faith in the abilities of his offspring, he said it’s not easy to acquiesce power.

“My kids keep taking my jobs. I don’t think they could be better trained than they are now,” he said. “For me, it’s difficult. I’ve been the boss for 41 years, making the decisions. It doesn’t mean I did all the work. Now, other people are making decisions for me, my son, my daughter and my brother [Ideal President Loren Venegas]. They’re thinking, ‘We’re going to give Frank a break.’ But work is my passion. Work is my joy.

“I never realized that people liked seeing me,” Frank Venegas continued. “So, I still go to work every day. I like to throw hand grenades into the room and then leave. When I throw a business issue/problem at the Ideal leadership team, most times they come up with well-thought-out solutions and plans to execute — much better than I could have done on my own. I’ve learned to talk softer, but sometimes I’m rather expressive about what I want done.”

Added his daughter with a grin: “We’re never going to get my dad out of the office because he is tied to that office. That is his No. 1 hobby. He didn’t start Ideal without having a genuine love for people. He goes around and talks to everybody. When we talk about him throwing candy, he literally walks up and down the hallways [throwing candy].”

While the senior Venegas will likely stay involved in the company, he said succession planning is vital for MBEs.

“One problem with minority companies is too many of them don’t have a plan on where their business is going to go next,” he said. “We have a succession plan. The business is going to go on. A lot of times, when we start making money, we forget where we come from. Another problem with minority companies is that they like to train their kids to be lawyers or doctors. The parents are really proud. But if they ask [their children] to come into the business, they don’t want to.

“If you’ve got gray hair, you’d better be able to tell them what’s going to go on next,” Frank Venegas continued. “My brother Loren and I are fortunate that Jesse and Linzie wanted to learn and become business owners. Over the years, Jesse and Linzie have earned their stripes as seasoned Ideal Group key executives and business owners. Their unique skills and talents add significantly to the skillset of the Venegas family leadership team.”

Now sporting silver locks of his own, Frank Venegas has his children and his companies set up for the future. 

To learn more about The Ideal Group, visit weareideal.com.

To learn more about Ideal Group, visit https://mbnusa.biz/detail/frank-venegas-crazy-like-a-fox.