Family businesses are built on legacy, trust—and sometimes unspoken expectations.
One of the biggest challenges I see is this:

“Mom and Dad still own the company. The kids all work here. But no one agrees on who should be paid what—or how the ownership transfer will work.”

Sound familiar?

The good news: this can be handled fairly—if you separate compensation from ownership and create a plan everyone understands.

🔑 Rule #1: Compensation ≠ Ownership

  • Roles should be paid based on fair market value—not last name or % of shares.
  • Ownership rewards should come through dividends, distributions, and long-term value—not inflated salaries.
  • Parents should not withhold proper salaries just because “you’ll own it one day.”

✅ A Framework That Works

  1. Define clear roles & responsibilities (Title, Success Profiles, KPIs)
  2. Benchmark market wages for each position (President, Ops Manager, Project Manager, etc.) – Get your FREE Guide HERE.
  3. Adjust for skill & experience within a fair +/– 20% band
  4. Layer on performance-based bonuses tied to company results
  5. Distribute profit separately based on ownership percentage
  6. Create a buyout or succession plan that doesn’t starve the business
  7. Bring in a third-party advisor to keep the process objective and fair

🏁 If Parents Are Selling to the Kids…

This is where it often gets messy:

  • The Next Generation may not be able to afford a full buyout
  • Parents want a fair price but also want the business to stay in the family
  • Emotions get mixed into pay and ownership decisions

Our approach:
✔ Clean up financials for a clear valuation
✔ Structure a gradual buy-in or earn-in
✔ Keep pay aligned with actual roles
✔ Facilitate conversations to keep relationships healthy

Nathan’s Personal Experience with Succession
In 2006, I personally navigated this process when I purchased Gelderman Landscape Services from my father-in-law. At the time, we had to balance fair market value, family expectations, and the need to keep the business strong for future growth.

The most critical items that I focused on were:

  • clearly defining the separation between family and business
  • determining a business valuation
  • developing a structured buyout plan
  • professionalizing the business (SOPs & KPIs)
  • investing in the Next Generation of Leaders
  • keeping personal finances separate from business finances

By focusing my attention on these best practices, we avoided common pitfalls that can lead to resentment or financial strain. Over the years, we grew Gelderman into a thriving 8-figure business before I successfully sold it in 2024.


That experience shaped my passion for helping other families achieve smooth, profitable transitions.

📥 Free Download
👉 2025 Pay Grades for Skilled Trades – Market Rate Wage Compensation for all positions

👨‍👩‍👧‍👦 Real Talk:
The goal isn’t just to “keep the peace.” It’s to build a business that thrives across generations. That requires structure, transparency, and the courage to have honest conversations.

Let’s help your family protect the legacy you’ve built.
Book a Discovery Call today and we’ll walk you through a plan that works for both the business and the family.

👉 Book a Discovery Call