Succession Planning: Why It’s Important to Start Now Barbara Horton and Carrie Hawley, Co-CEOs of HLB Lighting Design, break down the importance of planning for the future.
W
e started writing this article well before the 2020 worldwide pandemic began to unfold.
Years ago, we observed many legacy owners of lighting design firms aging out without
mentoring the next generation to take over
their firms. For lighting design as a profession to continue to thrive and grow, ownership
transition planning must become a part of our collective conscience as an industry.
Given the current pandemic and added pressures to our businesses, we expect a paradigm shift in the landscape of our lighting design
community over the next few years. Some owners will retire, some will merge with another firm, and some may ride out this current storm, recover and thrive as in past economic downturns. This article focuses on mid-career practitioners who:
• are thinking about becoming owners in an existing business • already own their business
• are starting a new practice of their own
“For lighting design as a profession to continue to thrive and grow with future generations, ownership transition planning must become a part of our collective conscience as an industry.” In all cases, we’re focusing on those who can plan their business strategy for the long term; while we are sharing our experience in the process of ownership transition. Our advice is to engage
professionals who can help you evaluate your goals, identify the
ideal business structure, assess the team or potential owners, and determine best options for you and your business.
Our firm’s 50 years in business have gone by surprisingly quickly, and over the years, we observed many firm owners aging out with no plan and little financial reward to show for their many years of hard work.
Our founder, Jules Horton, FIALD thought differently. By the late 70s, Stephen Lees, FIALD joined Jules as a partner, with Barbara Horton, FIALD following suit in the early 80s, purchasing her own stake in
the business. By the early 90s, Teal Brogden, IALD was invited to buy in, strengthening the firm’s West Coast markets. Along the way, we
had a few talented principals become owners who opted out for lifechanging reasons, making room for others. By the mid-90s, we had reached an inflection point. As Jules neared retirement, we sought
professional advice from a management consultant – a professional business strategist who helped us establish an overall framework
and develop a plan for our future. We have now worked with several
wonderful management consultants over the last 25 years, and each has given us new skills and expanded ways of thinking. Today, we
are a 90-person firm based in seven cities throughout the US, led by Barbara Horton, FIALD, CLD Co-CEO HLB Lighting Design
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Carrie Hawley, IALD Co-CEO HLB Lighting Design
14 principal shareholders, and we just celebrated the retirement of a second legacy owner.