Setting The Stage For Succession

APRIL 19, 2013
Barbara Pinckney
Reporter-
The Business Review

Any small business owner wrestles with the question sooner or later: What happens when I step down? For ad man Dean Rueckert, retirement will come. But when it does, he’ll be ready to pass the business to his sons. Here’s how he mapped out the plan.

Dean Rueckert has no set date in mind for when he will leave the advertising and public relations firm he founded more than two decades ago. In fact, he says he may never leave entirely.

But Rueckert, who will be 66 this spring, knows better than to ignore the inevitable. He has been transitioning ownership of Rueckert Advertising Public Relations to his sons, Chris and Jason, for a few years now, while also preparing them to run the business.

Related: The two sons weigh in.

“You have to think about a lot of things,” Rueckert said. “So you have to do it well in advance. This cannot be a last-minute thing.”

We asked Rueckert to tell us about his succession planning, the lessons he’s learned and the advice he would give other small businesses on how to achieve a smooth transition.

Q: When did you begin the process of succession planning?

A: I started thinking about it and putting plans in place three years ago.

I started to look at my exit. I’ve explored that question with people who own family businesses all over the country, and they have different points of view. Some say they found it hard to work with their kids. Whether it was a personality issue, or whether the kids were afraid to act because they saw the owner as the big cheese, the alpha dog, either way it was difficult. So one day they just came in and said “Monday is my last day, it is yours now.”

I don’t see that happening with me. But if you don’t have a set date to retire, you need to constantly talk to your kids and ask “Is it time for me to go? Am I a help or a distraction?”

Q: How have you approached the ownership issue?

A: To me the most important thing was making sure there were no tax implications. For example, if your company is worth $1 million and you give it to two kids, that’s a $500,000 gift to each and there are tax implications they cannot afford.

Another option, if you need a revenue stream, is to sell the business to your children over time. You can do that in a year or over five years.

I went with gifting over time. You can give $14,000 a year without tax implications.

The economy made it easier. That fact is, our business has decreased in value since the recession hit in 2009. We are down in billings and staff. With a smaller value it was more intriguing to me to gift it to them. I could give them a bigger portion of the company each year.

If you have a $5 million company it can take years to do $14,000 at a time. But $14,000 is a larger portion of a $1 million company.

Q: What other questions did you ask yourself?

A: You have to look at your kids. Are they capable? I believe my sons are.

Then the next question is, can they work together? Will they kill each other?

I am fortunate in that my sons work in different sides of the business. Jason is my creative director. Chris is the numbers guy, the marketing strategist. He would be the one making the financial, buying and staffing decisions. So they are on totally different sides of the business but have to work together to make it work.

Q: They also need to work with the rest of your people.

A: Yes. We’re a small business, a close-knit group. So I began to look at who on my staff do I have who have been loyal employees, who have worked well with me all these years. And I asked myself, will they have that same attitude toward my sons? If I leave, will these people have the same loyalty to Chris and Jason, or will they all leave? That can have a dramatic impact on your company.

So I started moving Chris and Jason into positions of increasing authority so they could earn that respect and loyalty.

It is the same with clients. When you are a small business, everyone wants to work with the owner. They may be happy with their account executive but they know I have my fingers in it and they like that.

I want them to know it is not all me. So over the past three years I have started to wean myself away from working with the clients and allowing them to get comfortable with the other people.

Q: Do vendor relationships also need to be considered?

A: All of my life I have done business with friends. I build relationships. Whether it is photographers, radio producers, printers—I work with the same people year in and year out. I don’t shop around. Vendors also include your banker, your insurance person—those  are all people I established relationships with 25 years ago.

It will not do Chris and Jason any good to build relationships with those people, because they are also about to retire. They need to build relationships with their peers, and I have been encouraging them to do that.

Q: What would you have done if you had no children, or if neither son wanted to come into the business?

A: Ten years ago when I was thinking about an exit plan, I did think about what would happen if neither son joined the business. There were a few options.

I was always looking for one or two or three key people on staff I could approach with “How would you like to buy into this business? After five years I’ll phase out and you’ll phase in.” The idea is that if you get them on the hook—they buy 25 percent then when you retire they will want to buy the other 75 percent so they aren’t out of a job. If you are going to do that, you need to start about five years in advance.

The other thing I thought about was an ESOP [employee stock ownership plan] that would make the employees owners of the company.

Plus, in New York you are always getting calls about selling your business. I never looked seriously at that, so I don’t know if it would be a viable option for me.

Pedaling For A Cause

APRIL 18, 2013
Rueckert Advertising is excited to enter a 20-person team in the American Diabetes Association's (ADA) Saratoga Tour de Cure cycling event on Sunday, June 2nd.

The agency is providing all team members with a unique Rueckert Advertising-branded cycling shirt so that riders can be easily identified out on the course.

"Our cyclists share a common bond of supporting the American Diabetes Association and making a difference in the lives of diabetic patients and their families," said Jason Rueckert, creative director.  "They represent all levels of athletic prowess.  Many are affected by diabetes or supporting others with the diease."

This year's Tour de Cure will begin and end at Saratoga High School. The fundraiser, which offers routes ranging from 10 to 100 miles, attracts more than 55,000 cyclists in 90 events nationwide and raised close to $20 million in 2012.

Agency team members expect to raise more than $5,000 to support the ADA's mission of preventing and curing diabetes and improving the lives of all people affected by the disease.

To join our team, please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Rueckert Advertising Revamps Eastwyck Village Website

APRIL 2, 2013
Rueckert Advertising recently redesigned the website of Eastwyck Village — an independent living community in the Capital Region.

The new site — eastwyckseniorliving.com — boasts an innovative design and organization and contains videos featuring resident testimonials and the community’s hallmark Senior Engaged Life Program.

“The new look and feel of the site is upscale and elegant, more accurately capturing the essence of Eastwyck Village,“ said Rueckert Advertising Director of Marketing Linda Mather, adding that its newly improved navigation makes the site more user-friendly. “We wanted potential residents to get a real feel of what Eastwyck has to offer before they visit.”

"Rueckert Advertising’s strong understanding of Eastwyck Village’s services is evidenced by their re-development of the site," said Adam DeSantis, director of community relations at Eastwyck Village, explaining that the resident testimonials really embody the spirit of the organization. "I have no doubt this will give us a stronger online presence and improve the overall image of our community.”

Eastwyck Village, which opened in 2011, is an elegant, 144-unit adult retirement community for seniors 62 and older. Minutes from Albany, Troy and East Greenbush, the facility offers a relaxed, independent and maintenance-free lifestyle where the key to aging well is living well. The hallmark “Senior Engaged Life Program” allows residents to remain active in mind, body and spirit as they enjoy everything from regular speakers and outings to Pilates and cooking classes. For more information, call 518-874-1638 or visit www.eastwyckseniorliving.com

Meet The Team: Jason Rueckert

MARCH 18, 2013
How did you get involved in graphic design?
I started just drawing a lot as a kid. I would draw, color, then cut out with an X-ACTO knife — mostly sports figures — and then paste them on various backgrounds. That led to advanced art classes in high school, which led to a bachelor’s degree in graphic design.

Who are some of the clients that you’re working with currently?
The small clients come and go and I usually have a hand in all of them. The big ones are the Freihofer’s Run for Women, Senior Whole Health, the Troy Turkey Trot, 1st National Bank of Scotia and Youth For Christ.

What is it like to work closely with your family? 
How many people can say they see their father and brother every day? It’s a blessing. I work with Chris and his clients and I'm always working with my father on creative. Sometimes my brother’s kids come in, as well as my daughter, so it’s pretty cool to see them running around here too!

Describe a typical day at work. 
Most of the time I am the first one here, so the first thing I do is get the coffee brewing. Then it’s work, whether it’s designing, retouching, watching tutorials, or fixing a computer issue for Ed (just kidding, everyone). But I always have to break for the gym at lunch.

What do you like about living in the Capital Region? 
I live in downtown Albany, so I take full advantage of that. We visit the museum all the time. My daughter gets a kick of seeing Papa (my father) in the city display down there. I can walk to Juniors Sports Bar, so I take advantage of good food and eats there too.

How do you spend your time outside of the office? 
I started a softball team three years ago, so during the spring and summer I like to play that as well as hit Lake George as much as possible with my daughter. During the winter, I like to ski and watch football.

What is something that most people don’t know about you?
Probably that I go to many tea parties with my daughter!

Are Super Bowl TV Spots Really Worth the Money?

JANUARY 28, 2013
Super Bowl XLVII kicks off this Sunday evening. And that means it's time for the nation's two best football teams — and some of the year's most expensive TV spots — to take center stage. According to Superbowl-ads.com, 30-second advertisements for the game are selling for up to $3.8 million — up by $300,000 from the $3.5 million published rate for the 2012 Super Bowl. But is the exorbitant price tag for these much anticipated cola, beer and car ads really worth the money? Dean Rueckert, president of Rueckert Advertising & Public Relations, Inc., offers his take in this video.

Adobe Flash Player not installed or older than 9.0.115!

Rueckert Joins Hurricane Sandy Relief Efforts

JANUARY 22, 2013

Although it has been more than three months now since Hurricane Sandy pummeled the coastlines of New Jersey and New York, homeowners are still feeling the pain of the devastating superstorm.

Last Saturday, as part of the ongoing rebuilding effort, Rueckert Advertising President Dean Rueckert traveled to Long Beach, N.Y., a beach community of 35,000 people, along with 100 parishioners from Grace Fellowship Church in Latham to repair homes damaged by the floodwaters.

The trip, which was organized in conjunctionwith international relief agency Samaritan's Purse, included cleaning out debris and muck from flooded homes, ripping up ruined flooring, stripping damaged sheetrock from walls, and spraying the exposed studs with a solution that kills mold.

“The first home we tackled belonged to a resilient Irish couple in their 80s,” said Rueckert, who spent four hours in their house along with other volunteers.  “They were so appreciative of what we did and couldn’t believe two bus loads of individuals from Albany would take the time to help them and other homeowners out.”

Next, Rueckert tackled another house in the same “eerily vacant” neighborhood, which is located just six blocks from the Atlantic Ocean.  At that site, he and his team ripped up ceramic tile and gutted badly damaged kitchen cabinets.

“These people have been through so much,” said Rueckert, whose congregation serviced seven houses that day, all cost-free to the homeowner.  “The least we could do is devote one day to help folks who have had their lives upended.”

Meet The Team: Dean Rueckert

JANUARY 3, 2013
With more than 42 years of experience in the industry, Dean Rueckert, president of Loudonville-based Rueckert Advertising & Public Relations, Inc., remains one of the most respected marketing executives in the Capital Region. We recently sat down with the longtime ad exec to reflect upon his life in the business and what it's like working with his two sons.

Why did you establish Rueckert Advertising?
Since I was 12, I knew that I wanted to go into this industry. In 1991, most big agencies were going out of business, including the one where I was employed. The entrepreneurship of starting a business was appealing, and I also saw a continued need for full-service, traditional-style agencies. I enlisted a partner as the copywriter while I worked as the art director. Together we started the agency. Once we built our client base, we did some hiring and that laid the foundation for what Rueckert Advertising is today.

What does Rueckert Advertising offer?
We are a full-service marketing firm offering everything from advertising and media buying to public relations and social media.

Who are some of your biggest clients at present?
We service an array of clients in the healthcare, energy, retail, manufacturing, finance, education and sports sectors. Some of our major clients include the Freihofer's Run for Women (graphics, public relations, social media), St. Mary's Healthcare (marketing strategy, branding campaigns, public relations), 1st National Bank of Scotia (radio and print commercials, outdoor, online, web development and management), NYS Higher Education Services Corporation (marketing strategy, graphics, media buying and website development), Albany Law School (regional and national public relations), and the Firemen's Association of the State of New York (media buying, social media).

What are some ways that the advertising industry has changed since 1991?
The advent of the computer in the early 90s, especially the Mac, turned the world of graphic design upside down. Another remarkable change is the development of databases that can track complex trends in consumer behavior such as what people are buying and how often. Firms can now purchase mailing lists that are extremely targeted and then create enormously effective direct mail campaigns. Finally, social media and web advertising are becoming an integral part of our industry.

Tell us about your involvement in the local community.
I moved to Colonie at the age of five and attended school locally, returning to the area after graduating from the Art Institute of Boston. I volunteered for 20 years as a firefighter and am now a life member at the Shaker Road Loudonville Fire Department. At 28, I became a councilman for the Town of Colonie and served in that position for 12 years, the last four as a deputy supervisor. I also spent a four-year term on the county legislature from 1994-1998. Today, I remain in the background of numerous local elections as an advisor or marketing consultant.

What is it like to work with your family?
My son Chris is an account executive here and my other son Jason is our creative director. Running a family business is rewarding and I'm pleased to know that what began almost 22 years ago could continue to leave its mark on the Capital Region. It's also a privilege to have all my family nearby.

How is the business faring today?
We have never experienced a more challenging economy than this one. That said, the downturn provides opportunities for clients that still have a need to market. There are some great media deals to be had, and businesses can claim market share more easily when their competition is not actively advertising. Companies with limited marketing budgets are also discovering that a good PR program can help them retain top of mind awareness at an affordable rate. It's important to keep our eye on the ball and remain as effective and efficient as possible because there are better days ahead.