MBN USA
October 29, 2021
Ideal Group builds generational wealth
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.
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