Bikes and helping kids: the directions these family business next-gens took

Article content

This series explores how next-generation members of enterprising families are making a name for themselves.

The children of an immigrant who started a successful mattress business did not end up in the family firm, but their own work all involves children – a result of their parents’ work ethic and generosity, they say.

Gavin Brauer, one of the three children of Cecil Brauer, is a professional EOS implementer (advisor working with Entrepreneurial Operating System), the co-founder of KindHuman Bicycles bike builder and retailer, co-founder of Pearl Interactives, a health-tech aimed at children with disabilities, and works with his father managing their family office.

Here, Brauer shares how he and his family manage their collective visions as entrepreneurs and next-gens in an enterprising family.

How did your father come to start a business when he first moved to Canada?

“My family came to Canada from South Africa in 1980. My dad was an accountant and had a dream of going into business for himself. In the mid eighties he was going to open a furniture store with a friend from South Africa. His friend’s family had a similar business in South Africa, and they were going to open a similar concept in Toronto.

My dad was sourcing suppliers for the new store when he met with the owner of the local Therapedic mattress factory. The owner told him, ‘I’d love to sell you mattresses but I’m about to shut down my business.’ My dad responded, ‘Don’t shut it down. I’ll buy it from you.’

Instead of starting a furniture store, my dad and his friend partnered in the mattress manufacturing business.

In the nineties my dad had an opportunity to acquire the Serta [mattress] factory in Toronto and that’s when his business really took off. Serta is a Top 3 global brand and that’s how I learned about the power of a strong brand.”

What did his experience and work ethic instill in you and your siblings as you were growing up?

“I think there are three sides to this. One is that my sister, brother and I had amazing role models in our parents. Our dad was focused on building his business and our mom worked full-time in a dentist office.

She was always volunteering at our school and getting us from place to place. For example, my brother and I both played competitive hockey. Unfortunately, we played on opposite ends of the city. My mom would come home from work, drive my brother to a game in Scarborough [east end of Toronto], pick me up and drop me in Mississauga [west end of Toronto]. While I was playing, she’d drive back to Scarborough and drop my brother at home before driving back to Mississauga to pick me up again.

My parents were happy to support our activities. The only rule was that we had to live up to our commitments. For example, I remember a few times as a kid when I had a practice at the same time as my friends were going to a party. I went to practice.

In addition to being role models and helping us stick to our commitments, my parents also gave us opportunities to work.

When I was 12 years old, I was shopping for new goalie equipment. I’ve been addicted to sports gear since I was a kid, and I wanted the top-of-the-line gear. My dad wasn’t willing to fund my habit. In the shop he made me a deal, “I’ll give you the amount I’m willing to spend. If you want to buy the more expensive equipment, then I’ll give you a job and you can earn the difference.”

That summer I went to work in my dad’s factory.

We learned a strong work ethic from our parents because they set an example, showed us what it meant to hold ourselves accountable, and then gave us opportunities to grow.”

What was it like growing up in a family business environment?

“For me it was a love-hate relationship.

I loved learning about business and seeing the positive impact my dad had on the people around him. During the day I’d work in the factory and at night I’d be at the dinner table having “board table” type conversations. I asked a lot of questions and got an amazing education from my father.

Not only did I learn some very important management practices, but I also got exposure to things most people don’t. I learned about unionization and labour contracts, shareholder agreements, capital allocation, and so many other things that even top-level executives rarely get included in.

Through my father I was able to see first-hand what happens when people make a specific decision and what happens months and years later. I was very lucky.

On the other hand, my dad never stopped working. He took the weight of the world on his shoulders. I remember going on ski trips and he’d be on the phone with the factory while we were having lunch. He was an amazing operator, but, like so many entrepreneurs, there were times he could have let go of the vine [delegate].

This was an important lesson for me from two angles. One, I knew at a young age how important it would be to learn the skill of delegation. I have my father’s DNA, so it took me a long time to put this lesson into practice.

The second lesson was appreciating how important it is to be mentally present with your family. Thankfully I started practicing this one a lot sooner after I had my kids.”

When did you feel your entrepreneurial spirit kick in, and did your family support you?

“I’ve wanted to build businesses for as long as I can remember.

My family supported me emotionally and financially. I borrowed money from my father for my first two businesses.

The most important thing for me was my family’s emotional support when things were not going according to plan (which happens all of the time). My family have been my biggest cheerleaders and they do a really good job of helping me protect my confidence.”

You and your siblings are all engaged in work that involves children.

“I think it’s pretty cool that my sister, brother, and I all ended up in organizations that help children.

My sister, Kerry Grossinger, is an elementary school principal. She’s a very dynamic person, an amazing leader, and operates like a CEO – it’s impressive.

My brother, Dean Brauer, is the co-founder of GoHenry, a debit card for kids and a financial learning app.

I’m a co-founder of Pearl Interactives, a health-tech company that makes video games for kids with disabilities that was founded at Canada’s largest children’s rehabilitation hospital, Holland Bloorview.

How did these initiatives become your and your brother’s businesses?

“My brother and I are co-founders of these companies.

In my brother’s case, he was working as an advertising executive in the U.K. when he met one of the founders of GoHenry. He started helping them with their go-to-market plan so they could close their seed round and then decided to leave his job, invest in the business, and join the journey.

I got involved with Pearl Interactives because I started volunteering at Holland Bloorview Kids Rehabilitation Hospital during [the acute phase of the COVID pandemic]. I was volunteering in their tech transfer office, which helps commercialize some very cool products that are invented at the hospital. Pearl Interactives needed someone to help go from product to company, and I took on the opportunity.

Out of the three of us, I think my sister’s story is the most impressive. She’s an amazing educator and puts her heart and soul into helping kids learn, grow, and become successful adults. During COVID, she had the weight of the world on her shoulders. Can you imagine the pressure of having to manage the safety and wellbeing of our kids through that crisis?”

As you were developing these new ventures, did you turn to any advisors along the way?

“I’ve been extremely lucky that I have a wide and extensive network. There are a lot of people who’ve gone out of their way to help me – too many to mention.

I lean on these people to learn new skills, fill gaps in my experience, and make better decisions. Most importantly, these people help me protect my confidence. The No. 1 resource I have is my coach, Janelle Smiley. I’ve been meeting with her every other week for close to five years. My appointment with her is the most important meeting in my calendar.

I believe strongly in hiring the best professionals one can afford. I have very long-term relationships with my professional service firms, including my accountant Brian Joffe (Fuller Landau) and my lawyer Sammy Redlick (Torkin Manes). These are multigenerational relationships that started with my father.

At KindHuman Bicycles, which just celebrated its 10th anniversary, I have a group of people whom I turn to on a regular basis. It’s mostly made up of customers who’ve become friends, are passionate about what we’re building, and have expertise relevant to our strategic objectives. Most importantly, they know what I want out of life and my business.

At Pearl Interactives, I participated in five accelerator programs. Each program had a different approach and value. Some provided us with capital, but they all help with knowledge, mentorship and networking.

Propel is focused on market development and they really helped me understand a structured approach for launching a new business and creating your first customers. Ontario Brain is establishing Ontario as a world leader in brain research, commercialization and care. H2i at the University of Toronto was instrumental in helping me understand the health-tech and medical device space. OBIO is a leader in supporting the commercialization of Ontario’s human health science companies. ATS Labs from Access to Success is Canada’s first accelerator for accessibility startups and they helped me navigate the accessibility space.”

Were there any pressures coming from a successful family business background?

“The hardest thing for me is the pressure I put on myself. I’ve had every opportunity to succeed in life and for a long time I felt as though I was coming up short, given the leg up I was given. At the same time, I have big dreams and am driven to achieve them.

When I was approaching my 40th birthday it had all become too much for me. I felt like a failure, and I didn’t like the way I was treating myself and the people around me. I eventually hired a coach who I meet with every other week and have been doing this for five years. I started reading a lot about how to improve my behaviour and my mental state. Most importantly, I started practicing the techniques I was learning. Small changes, consistently practiced over a long period of time, really do make a huge difference.

Thankfully, I’ve become better at recognizing and appreciating my accomplishments. I’ve become more patient with myself and others. I’m very lucky that I’m in a position where I get to wake up every day doing what I love, with people I love, making a huge difference.”

Do you have any advice for next generations of family businesses who want to branch out on their own (or entrepreneurs, generally)?

“First and foremost, protect your confidence. The world is a tough place and being able to protect your confidence is a critical skill.

Second, get clear on what’s important to you. Then work on that.”

Responses have been lightly edited for clarity and length.

More from Canadian Family Offices

• What skills does a 4-year-old need to get into top schools?
• Next gens uninterested in taking over the business? This may help
• How to find roles for family in the business
• Mountain climb was catalyst to launch neck and back pain startup

Please visit here to see information about our standards of journalistic excellence.