In this episode, hosts Peter Kang and Sei-Wook Kim pull back the curtain on one of their most significant career transitions: stepping away from the day-to-day leadership of their first agency, Barrel, without selling the business. They define this strategic move as a "role exit" which is a path less discussed but highly relevant for founder-led businesses.

Peter and Sei-Wook share the multi-year journey of identifying and grooming their successor, Lucas Ballasy, from designer to CEO. They detail the practical steps of mapping out their own responsibilities, filling skill gaps, and navigating the emotional challenges of letting go, even amid a major client crisis. The conversation also explores the profound shift in their daily lives post-transition and how this move unlocked their ability to fully focus on building Barrel Holdings.

For any agency founder wondering how to eventually step back without a full sale, this episode offers a candid, real-world blueprint built on trust, deliberate planning, and deep relationships.

Key Moments

1. Defining a "role exit" and how it differs from a traditional ownership sale.

2. Identifying the right successor: The qualities that made an internal candidate the perfect fit.

3. The multi-year grooming process: From a team member to CEO.

4. The essential first step: Mapping out all founder responsibilities to define the new role.

5. Navigating a major business crisis just before the leadership handoff.

6. The toughest part of letting go: Trust, patience, and resisting the urge to micromanage.

7. Life after the exit: The shift to a strategic focus and building Barrel Holdings.

Real Talk Takeaways

1. A "role exit" is a powerful alternative to selling your business, allowing you to retain ownership while freeing up your time.

2. The ideal successor is often already in your building. Look for proactive, low-ego team members hungry for more responsibility.

3. You can't hand off a messy role. You must first map out and systematize all your responsibilities to set the new leader up for success.

4. Transition timing is never perfect. You must trust your chosen leader to navigate challenges, even difficult ones you're handing over.

5. The emotional tie to your first business is immense. Letting go requires immense trust, which is built on a foundation of shared history and values.

6. Post-exit, your focus shifts from daily firefighting to quarterly and yearly strategic planning.

7. The magic formula for a successful transition combines strong personal relationships with deliberate, intentional planning for the future.

Timestamps

00:00 – Intro: What is a "Role Exit"?

01:08 – Why we decided to step back after 18 years

02:17 – Identifying and grooming our successor: The Lucas Story

03:58 – The practical steps: Mapping out our roles and responsibilities

06:24 – Navigating a crisis: Losing major clients right before the handoff

08:25 – Making the final call to transition amid uncertainty

09:31 – The toughest part: Letting go of control and trusting the new leader

10:10 – Life after the exit: The immediate shift in our daily reality

11:54 – How the transition unlocked our focus on Barrel Holdings

13:16 – The #1 lesson: Why deep relationships make a succession possible

15:02 – The final takeaway: Combine strong relationships with deliberate planning

Notable Quotes

"When people hear the term exit, they usually think about selling a business.  Our definition of exit was slightly different from that." — Sei Wook Kim on the definition of a founder's exit.

"The ideal successor is often already in your building. Look for proactive, low-ego team members hungry for more responsibility." — Peter Kang on identifying internal talent.

"Transition timing is never perfect. You must trust your chosen leader to navigate challenges, even difficult ones you're handing over." — Sei Wook Kim on navigating the handoff during a crisis.

"As founders in a business for more than a decade and a half, there's a lot of little things that we take for granted. Little activities that we were just doing on autopilot. We spent a lot of time kind of mapping out all these things." — Peter Kang on delegation of marketing, HR, and finance.

Links & Resources

Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/

Sei-Wook on LinkedIn: https://www.linkedin.com/in/seiwookkim/

AgencyHabits Website: https://www.agencyhabits.com/

AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/

Barrel Holdings Website: https://www.barrel-holdings.com/

Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/