Building Is Hard. Transitioning Is Harder.

September 25, 2026 | AgFocus-Ag Focus | BusinessFocus-Business Focus

Dr. David Kohl, the well-known agricultural economist, often says, "It's easier to build a business than it is to transition out of it." For farmers and small-town business owners, that statement captures a reality that many families face but few are fully prepared for.

Most successful businesses are built over decades. The founders take risks, work long hours, make sacrifices, and overcome challenges that test their resolve. Whether it is a grain farm, cattle operation, hardware store, manufacturing business, or local service company, the business often becomes more than a source of income. It becomes part of the owner's identity.

That is precisely why transitioning the business can be so difficult.

Building a business generally requires one decision-maker. The owner sets the direction, makes the major financial decisions, and establishes the culture. Transitioning a business, however, involves multiple generations, family dynamics, financial considerations, and emotions. It requires the older generation to gradually give up control while the younger generation learns to accept responsibility.

Many transitions fail not because of poor finances, but because of poor communication. Parents may assume their children know the plan. Children may assume there is a plan when none actually exists. Difficult conversations about ownership, management authority, retirement income, fairness between heirs, and future expectations are often delayed until a crisis forces action.

The most successful families view transition as a process rather than an event. They begin planning years in advance. The next generation is gradually included in financial discussions, strategic planning, and major business decisions. Roles and responsibilities evolve over time, allowing everyone to gain confidence in the future.

For those nearing retirement, it is also important to remember that stepping away from day-to-day management does not diminish the value of past contributions. The next generation is not replacing the founders; they are building upon the foundation that was created through decades of hard work and sacrifice.

Dr. Kohl's quote reminds us that success is not measured solely by building a profitable business. True success is creating a business that can continue to thrive after you are gone. The ultimate legacy of a farmer or business owner is not simply what was built, but how effectively it was passed on to those who will carry it forward.

Planning for Tomorrow Starts Today