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Business Journal Q&A: Mark Nelson

Former staffing company president charts new course

Published: Monday, December 1, 2008 at 3:00 a.m.
Last Modified: Sunday, November 30, 2008 at 1:58 p.m.

SONOMA – Mark Nelson, the son of one of the North Bay’s most successful entrepreneurs, announced his departure from the family company last week after more than 20 years.

Since joining his father Gary Nelson’s business, Nelson Family of Companies, Mark has served in several positions, including his latest title as president.

He helped lead the company from $10 million in revenues to nearly $400 million last year and launched the group’s first finance and accounting professional staffing division, among other accomplishments.

The company said Mark will stay on until at least the end of the year, and his duties will be absorbed by new Chief Executive Officer Jonathan Parker, hired in July, and Chief Operating Officer Steve McCarthy.

Mr. Nelson said he is not completely leaving the business but rather “taking a step back,” as he will continue to operate as a shareholder in the company and on the board of directors.

“This was a decision my father and I made together,” he said.

Mr. Nelson was interviewed by the Business Journal and had this to say about his plans, his family and doing business in a recession.

Q. How long have you been planning this?

A. This is something that has been going on in my mind and the mind of my father for a couple, three years. ... You kind of just know the signals are there and that it’s just time to do something else. I have been very, very fortunate to work alongside my father for the last 20 years and to build a business with him, but sometimes you do a little self exploration and kind of want to spread your wings a little.

Q. You mentioned you are not exactly sure what you will be doing, but can you say what you won’t be doing?

A. I think the picture will start coming together in January or February. When you are so passionate about your family business, you are self absorbed in it, you don’t have much time to do a self assessment. ... I’d say the chances are pretty sizeable that I will start my own business, but I am not closing the door on anything. I have learned from one of the greatest entrepreneurs around, my father. ... It has really prepared me for the next step in my life.

Q. Will Nelson continue to have the feel of a “family” business?

A. When we were a $10 million company it was very entrepreneurial, very reactive. You know all the employees’ names, you know all their dog’s names. Having that level of understanding and intimacy with employees is difficult if not impossible to maintain at the same degree ... but I think you can still be family-run and incorporate certain professional standards in the business while maintaining some level of family intimacy, but in a different way.

Q. What will the transition be like?

A. I am staying on through the end of the year, but it’s not like I am moving to Africa. I still live in San Rafael, we have family meetings and I will still see my father and brother and others in my family on a regular basis. ... My role has transitioned in a myriad of ways over the years, but the business is set up where the transition will be seamless, and where there are voids we will develop ways to mitigate that risk.

Q. You picked kind of an interesting time to go out in the world right now with the economic recession. Does that make you anxious at all about starting a business right now?

A. Assuming you have the capital, right now is actually an ideal time to start a business. Regardless of the venture that I decide to engage in, the likelihood of an already existing business being in a difficult situation is probably pretty good. They are concentrating on how they will save their business, reduce their operating expenses, maintain profitability. While they are doing that I can simultaneously focus on building a business that is strategic. ... The competition will be diminishing. I am a glass-half-full kind of guy anyways, and I have a lot of confidence in my abilities, and I just know it’s going to happen.

Q. I know you are leaving staffing, but you probably still have some insight in the industry. What would say we can expect for the next few years?

A. Staffing is always the first to be hit hard by the recession, and we have had a difficult year, but we weathered the storms. We have been in business 35 years now, this is the third recession I have gone through. ... Staffing is the first to be hit, but it’s also the first to rebound. Businesses are always a little gun shy about hiring full time right away after a recession, so they do a lot of temporary hiring. ... I also believe that when it recovers, it will be a boom.

Q. So basically if we want to know when the recession is ending we should look to the staffing industry?

A. Staffing – particularly contingent and temp staffing – will certainly be a leading indicator.

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