Some of the largest, oldest, most successful companies in our country were founded by families.
The Snickers and Milky Way bars we pick up at the convenience store are produced by the Mars family — the second-wealthiest in America.
Other major companies that started out as family-owned enterprises (they may be public companies now, but their founding families often still play a major role in running them): The Amos family gave us those commercials featuring the Aflac duck. Enjoy Tyson Popcorn Chicken Bites? Thank the Tyson family. Drive a Ford vehicle? Shop at Walmart? They were started by the Ford and Walton families, respectively.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This article is written by attorney and consumer advocate Dennis Beaver, who has a passion for helping small businesses and their employees overcome issues that impede success and happiness.
One family-owned business that my readers in the Southern states have likely heard of — Community Coffee, based in Baton Rouge, La. (More on that later.)
Ninety-seven percent of all U.S. farms are family-owned, and they face the same challenges as any closely held company. No family enterprise wants to end up like Sears or Blockbuster or deal with the nastiness and infighting portrayed on the HBO drama Succession. But that was “Rudy’s” fear.
'I'm worried about our survival'
In a lengthy phone call, Rudy explained, “We are third-generation farmers in the California Central Valley, and I am worried about our survival. Coming into the office used to be the high point of my day, but it hasn’t been like that for a long time.
“No one seems able to have a normal conversation. We used to have a close relationship with our employees, and I keep telling everyone that we are headed in the wrong direction.
“Do you know of something we can read that may help us develop a strategy moving forward? Have you had personal contact with a multigenerational business, and if so, what are they doing right?”
To answer the first part of Rudy’s question, I would recommend reading the recently published The Enduring Enterprise: How Family Businesses Thrive in Turbulent Conditions. This book is right on point and a real lifeline for any family-owned business.
It’s a prescription for dealing with challenges that are unique in today’s business environment. While it was published in late 2024, much of the content has become even more relevant to the topsy-turvy financial challenges facing our country today.
Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.
I had the pleasure of interviewing the authors, Devin DeCiantis and Ivan Lansberg, who stressed the importance of strong relationships — both internally and with your customers, suppliers and the communities you serve.
They use case studies in their book to examine the challenges that are of particular relevance to the generations that will follow. Their work is well-researched, accessible and focused on keeping family-owned businesses healthy.
Community Coffee, where relationships matter
To answer the second part of Rudy’s question, about a multigenerational company that’s doing everything right, I turned to Matt Saurage, chairman of Community Coffee.
Years earlier, his father, Norman, was a guest on my Saturday morning AM talk radio show, and I never forgot his message to my audience: “Take good care of your employees, customers, community and each other. In so doing, you will be able to weather any storm.”
I asked Matt, “What leads a family-owned enterprise to fail, and how has Community Coffee survived for over a century?”
“Dennis, you must never forget that a company is its people, and so your ability to communicate and earn trust is one of the keys to not failing,” he said. “Generally, it isn’t running out of money that leads to failure. Rather, it is because owners or leadership have lost touch with the central element of their business, which is their people.”
Infighting and distractions are real
If you’ve watched the TV show Succession, most likely you wonder if it reflects real-world issues that just about any family-owned business can face, such as infighting and distractions. What did Saurage have to say about that?
“When family issues become a distraction for the business, this is a major challenge,” he said. “Competition between siblings, for example, may seem adolescent but can be counterproductive when there are family members who do not fully understand the business or the role of family working in the business. These times demand vision, good listening skills and being fully transparent.”
He also noted that everyone needs to be on the same page when it comes to the family business.
“Caring about the business is so important,” he said. “Everyone needs to know and understand the business philosophy. Add to that a guiding principle of what the family is trying to achieve — for example, income or that the family’s priority is to see the company remaining private for generations.”
Keep the business going
Saurage offered several recommendations for keeping a family business going, whether family members are employed by the business or not.
“Avoid excessive debt or leverage,” he emphasized, “as too much of either can be a threat to survival. Moreover, all family owners are stewards of the business and can add great value without being employed by the company. Competent, talented people are needed to work here based on their merit and values, and this equally applies to family members.”
How might a family-owned business develop a sense of family in the business? “Get your children involved at an early age,” Saurage noted. “Allow them to observe and learn about the people who make the company what it is. Instill in them the joy they will experience taking charge one day.”
To read more about how multiple generations can contribute to a family-owned business, check out the article To Buck the Third-Generation Curse, Focus on the Family Story, which uses the Lawrence Welk family as a great example.
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
Related Content
- How Business Owners Can Prepare for a Terminal Diagnosis
- His Employees Don't Work 'For' Him, But 'With' Him
- Can You Be Fired for Going to Work When You're Contagious?
- Four Easy Ways to Get Yourself Fired
- How Much Fun Is Too Much Fun When You're in the Office?
-
$40,000 CD vs $40,000 High-Yield Savings Account - 3 Things Savers Should Consider NowBoth options offer risk-free methods to grow your savings. Learn how much you can earn with each, how they differ and which one suits you best.
-
I'm 51 and my portfolio is up. I'm planning to retire at 60 and want to start moving out of stocks. Is that smart?We ask financial experts for advice.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to KnowIf you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both WorldsBefore investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
Markets Are Quiet Ahead of Fed Day: Stock Market TodayInvestors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These StocksWhile the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client ReviewsFinancial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop InvestmentsTruck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
