Mike Smith has been in the exhibits business for 45 years, having worked for four different companies before founding Alexis Exhibits in 2004. He has grown the business significantly and in 2015 acquired Ohio Displays, the second oldest exhibits company in the nation and a well-respected name in the industry. Today, his business supports approximately 350 events per year with about 25 employees working in over 130,000 square feet of prime exhibit production space in Elyria, Ohio. The company is a trusted partner in trade show exhibit design, service, management and cost control for regional, national and international corporations that rely on tradeshows as a marketing tool. While the pandemic essentially shut down the tradeshow business, Alexis has made a dramatic rebound, with business back up by 140% in the first quarter of 2022.
What inspired you to begin working on a succession plan?
Before the pandemic, we had a pretty good idea where we were headed as a business. But changes to our leadership team altered that plan so I’m trying to rekindle it – because I have a calendar and I know how to read it. I’ll be 70 at the end of the year and my goal is to have a plan in place by then. Legacy Business Advisors has been a good place to start. Mark Dorman has also referred me to other people who can help. I know how I want our succession plan to end up, but I need help putting the details together.
In your succession planning process, how has Legacy Business Advisors been helpful?
Being an entrepreneur is the loneliest job in the world – so you need somebody to talk with candidly about the issues you face as a business. Mark brings to the table an education in finance, and he’s not biased like my banker or accountant can be. He’s got a broad base of knowledge from having worked with many different businesses.
As you look to the future, what’s your primary goal for the business?
My focus is on the business continuing to operate. I named it “Alexis” after the volunteer fire department where my father was chief, in Washington township outside of Toledo. I told him about starting my business in 2004 just about a month before he passed away. So there’s meaning to it and I want it to perpetuate. This is a fun, rewarding and lucrative business – and I want to see it continue to serve clients for years to come.
Having worked with Mark, what are “lessons learned” about succession planning?
Everything I do is part of succession planning. When I’m talking to an employee, I’m thinking of them being able to perform functions without me being present. I should be able to take next week off without too much craziness or it being detrimental to the business. If you’re a micromanager or hold things too close to the vest, you’re never going to progress in the transition of your business – unless you’re all the about the balance sheet and just want to sell it. But in our industry, that doesn’t work well. People who don’t understand this industry will not be able to grow a business exponentially.
Do you believe a business owner can do succession planning on their own?
I strongly urge people not to do that. I’m pretty well versed in accounting and other aspects – but you’ll encounter things you’ll do wrong in the process. The biggest problem is that you’ll lack confidence in your own plan, because you won’t have anyone else to give you direction. When you’re talking about a major life decision like a succession plan, it’s just stupid to do it on your own. You need to seek out people who do this all the time.
Why would you recommend Mark and Legacy Business Advisors?
Mark is credentialed and he speaks from experience. He can share examples of mistakes he’s seen other clients make. That’s invaluable. I can pretty quickly tell how smart or not smart someone is, and if they’re wasting my time. Like any entrepreneur, if you waste my time, it’s going to be a real short conversation. Mark and I don’t agree on everything but he’s a smart guy. He’s remote enough from my business that he can candid. And I have every confidence that he has my personal best interest in mind.
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