Most rounds of golf include a few missteps and hazards along the way. 

The path to becoming a third-generation golf retail industry leader was no different. 

For Sioux Falls-based Austad’s Golf, which was founded in 1963 by Oscar Austad, reaching more than 60 years and 10 stores involved everything from conflict to creativity. 

“I want to get a message across that these are not unique situations in family businesses, but there are ways to get through it,” said Dave Austad, CEO and second-generation co-owner.

The Austad family will share their lessons learned behind teeing up the next generation for success at an upcoming Prairie Family Business Association webinar. The conversation is being held in person at 11 a.m. Jan. 30 at the Canopy by Hilton hotel as well as available virtually.

“This is part of our ongoing goal to give succession insight to families – those at the beginning of engaging with succession as well as more advanced ones,” said Stephanie Larscheid, executive director of the Prairie Family Business Association.

“We’ll hear what’s gone well, what hasn’t gone well, what the Austad family would do again and what lessons were learned along the way. Our goal is everyone who attends will take away at least one valuable insight from the journey.”

This also is the one PFBA webinar annually available to anyone – you don’t have to be a member to attend.

Click here to learn more and register.

 Sneak preview

For the Austads, the mid-1990s brought multiple challenges, personally and professionally.

“My dad was dying, the business was failing, and it was a mess,” Dave Austad said. “My dad had been diagnosed with Alzheimer’s and was incapable of making decisions about the business, including future ownership.” 

Because Austad and his brother were unable to resolve the situation, the family turned to the original Prairie Family Business Association – then called the Sons of Bosses, where other business owners who were part of the organization formed an advisory council for them.

“They were the ones to decide the fate of our business, and my brother and I had to proceed based on what they determined, which is how I came to be president,” Austad said.

“Today, my brother and I have a good relationship, and that’s not always the case when family businesses transition. But I will tell you despite everything going on back then, our conflict was the most stressful thing happening at the time, and there could have been ways to avoid it.”

Austad was mindful of that when taking a different approach with his son, Ryan, who began his corporate career in the Twin Cities before returning to Sioux Falls a decade ago to become part of the family business.

“My dad approached me to ask if I’d be interested in coming back, and my wife and I really loved living in Minneapolis and had great jobs, but we didn’t have as big of a support network as we grew our family,” Ryan Austad said.  

“I’ve always had a passion for not only golf but certainly our business. When your name is on the side of the building, you take a lot of pride in what’s been accomplished, and you want to see it carry forward.” 

But when he returned, despite gaining valuable experience at Gallup Inc., “I was very cognizant of the fact I didn’t want to be seen as a nepotism hire,” he said.

His initial role was vice president of stores, overseeing 10 store managers and assisting with personnel, development, engagement and strategies – a role that drew on his experience and allowed him to add value.

At the webinar, the Austads will share how they approached bringing Ryan into ownership, including the pay cut he took to return to the family business, the role Ryan’s sister Sara plays in the business and how both father and son viewed some short-term sacrifice as a long-term gain.

Dave Austad, center, with his son, Ryan, and daughter Sara.

“Both of us have entrepreneurial mindsets, thinking we’re going to create something far greater than what’s in the moment, and that’s worked out really well,” said Ryan Austad, who now serves as president and chief operating officer. “We’ve had a nice run of success.” 

Success strategies

Both father and son are engaged in Affinity Peer Groups organized through the Prairie Family Business Association that help them connect with other family business owners in similar stages of transition.

“Our peer group has been meeting seven years, and it’s been very helpful not only from a business standpoint but they’ve become good friends,” Austad said. “As the business become less and less a major part of life, you can share other things like how to transition to retirement. But I still bring anything I’m working on now to the group and get great feedback.”

Ryan Austad has been meeting with his group even longer.

“Participating in a peer group normalizes the unique issues a family business brings,” he said. “Our group understands you wear a business owner hat and a family member hat. The intersection of these two roles can be tricky. We help each other successfully navigate these challenges and opportunities.” 

As Austad’s Golf navigates its current transition, the family also is looking toward its fourth generation and increasingly is focused on philanthropy.

The Austad’s Golf Charitable Foundation is a nonprofit that “gives us the power to do more fundraising, set up more programs and allow us to contribute to community causes in each of our markets,” Austad said.

A particularly memorable giving experience brought several family members to Zambia through the nonprofit Golf Fore Africa, which builds wells in remote areas of the African nation.

“My wife and two of my daughters who aren’t in the business went to dedicate the well, which is bringing fresh water to thousands of Zambians for the first time,” Austad said.

“My hope is the foundation is something that allows my family to meet regularly for years into the future and determine what charities will benefit. I see it as a way to involve multiple generations because it’s a cool part of being an Austad.”

Austad’s also holds an annual tournament to benefit the First Tee of South Dakota and is a major part of the organization’s new building under construction at Elmwood Golf Course.

Within his family, Ryan Austad also encourages his children to research and determine where charitable dollars should be gifted.

“This year, they decided to donate to a nonprofit that employs kids with disabilities, so they got to write the check and deliver it to the owners themselves,” he said. 

The overall approach to philanthropy caused the company to be named charitable retailer of the year by the National Golf Buyers Association.

“I was inspired to make philanthropy a way to involve our entire family from a Prairie Family Business Association seminar by a business that does such a great job with family legacy,” Austad said. 

“Now, we’re looking forward to sharing what we’ve learned with others.”

To learn more about the upcoming event Driving Success: Mastering Succession Planning for the Long Game and register, click here.