I know what it looks like when succession goes wrong. I've seen families torn apart by it. I've also seen it done beautifully — and the difference almost always comes down to one thing.
Did the next generation earn their seat at the table, or were they just handed a title?
The Colby Corp story.
David Colby is the CEO of Colby Corp. His mother founded the company. His grandfather created the Wonderlic Test — the same assessment the NFL still uses to evaluate quarterbacks in the draft. Talk about a family legacy in the assessment space.
But here's what makes David's story different from most family business successions: he didn't walk in on day one and get the corner office. He worked through the ranks. He earned the role. And his mom — who created the tools that literally measure how people think — made sure of it.
I sat down with David on The Decidedly Podcast to unpack what that journey looked like and what every family business owner can learn from it.
The title trap.
Here's what I see all the time with the family business owners I work with: Dad builds the company, works 70-hour weeks for 30 years, and then says "Junior, you're the new CEO."
Junior might be capable. Junior might even be brilliant. But if the team saw Junior get the title without earning it, the trust isn't there. And without trust, the business starts bleeding talent, clients, and eventually, value.
This is one of the biggest risks in succession planning — confusing inheritance with leadership. Ownership can be transferred. Authority can be granted. But trust has to be earned.
What David did differently.
David talked about what it was like growing up with a mom who literally built tools to understand how people think. "She only thought she knew how my brain worked all the time," he joked. But the reality is that Kathy Colby created an environment where David had to prove himself — not just to the company, but to himself.
He didn't skip steps. He learned the business from the inside. And by the time he became CEO, the team followed him because they'd watched him do the work — not because his last name was on the building.
That's the model I encourage every family business owner to follow.
Leveraging strengths, balancing gaps.
One of the most valuable things David shared was about building a leadership team that balances the founder's strengths and weaknesses. Every founder has blind spots. The best succession plans don't just replace the founder — they build a team that's collectively stronger than any one person.
Questions to ask yourself:
- What am I great at that the business depends on?
- What do I avoid or struggle with?
- Does my successor have complementary strengths, or are they just a copy of me?
- Have I built a team around my successor that covers the gaps?
A successor who's a mirror image of the founder will repeat the same mistakes. A successor who balances the founder creates something better.
The conversation most families avoid.
The hardest part of family business succession isn't the financials or the legal structure. It's the conversation. The real one. The one where you sit down with your kids and say: "I love you, but this role might not be right for you." Or the one where your child says: "Dad, I don't want the business."
Both of those conversations are terrifying. And both of those conversations can save a family.
I've been on both sides of this. My dad Shawn built a practice that I grew up around. I chose to start my own thing. That decision — to build Decidedly Wealth Management rather than just take over his book — made me a better advisor and a better son. We ended up working together on the podcast, which has been one of the best things in both our lives.
The point is: succession doesn't have to mean "the child takes over." It means the right person takes over. Sometimes that's family. Sometimes it's not. And either way, you need a plan.
Start with the five key decisions.
If you own a family business and you're thinking about what comes next — even if "next" is ten years away — here's where I'd start:
- Decide who you are beyond the business. What does your identity look like after you hand over the keys?
- Decide where you are today. What's the business worth? What are your family dynamics, honestly?
- Decide where you're going. Do you want to keep it in the family, sell, or something in between?
- Decide how to get there. Build the plan — including the uncomfortable conversations.
- Decide who matters. Family, employees, community — how do you protect all of them through the transition?
If you're a family business owner in Fort Worth or anywhere in DFW, I'd love to have this conversation with you. It's what we do every day at The Decision Lab. And your first conversation is always free.
This article is based on a conversation from The Decidedly Podcast. Insights, advice, and comments provided by Sanger Smith, Shawn Smith, and guest speakers should not be considered personalized financial advice or recommendations. This content is produced solely for informational and educational purposes. For personalized guidance, book a free conversation.
