Why I Friggin' Love Family-Owned Businesses

Did you know that the heart and soul of America's economy are family-owned businesses? Yup, that’s right. These family enterprises make up a whopping 80 to 90 percent of all businesses in North America! And let me tell you why I love working with them so much—it’s not just about the numbers; it’s about the pulse, the drive, and the purpose that beat at the core of these businesses. There’s something special about a company where everyone shares not just a vision but a name at the dinner table.

But here’s the hard truth, my friends: while over 30% of family-owned businesses make it to the second generation, that means almost 70% don’t. And the numbers keep dropping—only 12% survive to the third generation, and just 3% make it to the fourth. Ouch! It’s like a tragic opera, except with less singing and more bankruptcy filings.

Now, I’ve been in the trenches with over 100 family-owned businesses for the last 30 years, helping them navigate the treacherous waters of generational transition. It's my passion and my purpose to keep these businesses thriving, to help them find that magical “yes” factor that makes the next generation excited to take the reins.

Let me take you back to where it all started—my very first client, Arizona Shoe Corporation, back in 1983. Picture this: a father, Jack Goot, and his son, Bob, in a classic standoff. Think of it as a business version of "The Good, the Bad, and the Ugly," only with more shoes. They couldn't agree on how to run the company. Jack had his eight traditional Goot Fashion Shoe stores, while Bob wanted to innovate with 20 “concept” stores like Capezio, Joyce Selby, and Rockport.

Both of them were so busy being “right” that the staff had gone “deaf.” There was my chance to make a real difference. I suggested meeting with each store team without the owners—just me and the team members. And guess what? People started to talk… and boy, did they have a lot to say!

We filled up eight pages of flip charts with their dreams, goals, and wishes. It was like watching a room full of dimmed lights suddenly switch on—everyone was lit up with energy! The teams realized they all wanted the same things. It was a true "Kumbaya" moment, except without the acoustic guitars.

Then came the real talk: I asked them what the obstacles were. Unanimously, they said, “Jack and Bob.” (Shocker, right?) But once we got past the blame game, they admitted the real obstacles were minimal. “The rest we can do if we’re together,” they said. And together, we laid out three priorities:

1. Create a Common Goal: They wanted a 100% sales increase, and since everyone was on commission, everyone was in!
2. Build Structure for Accountability: Training, operations, communication, and evaluations were my job, and I was ready for it!
3. Celebrate Successes: Reward, recognize, and celebrate the results. We even made this part fun with leadership training.

I won’t bore you with the nitty-gritty, but let’s just say Arizona Shoe Corporation didn’t just hit their 100% sales increase goal—they smashed it! Twice! The secret sauce? The teams decided to cultivate deeper relationships with the “Snow Birds” who wintered in Arizona and sent shoes on approval back to their Midwest homes—way before the internet made that stuff easy!

And just like that, the divide between Jack and Bob? It melted away like butter on a hot Arizona sidewalk. Suddenly, they were in awe of their own company, saw their roles differently, and realized that having structure and systems gave them the freedom they craved.

One of my favorite moments? Bob pulled me aside and whispered, “If you want to see the Top, look at the Bottom.” Bingo! A lesson for the ages.

By the way, I was written up in “Footwear News” for this massive turnaround—100% sales growth two years in a row. Before I knew it, the footwear, apparel, and retail worlds were knocking on my door, eager to learn my methods. The catch? I only work with those who are willing to get off their high horse and embrace change from the ground up. (Yes, I’ve “fired” clients who weren’t ready to do just that!)

So here are my three golden tips for you:

1. Create a Vision with Your Team: Your culture is built by your team, not dictated from the top.
2. Structure for Success: Make sure everyone knows what “good” looks like—clear training, communication, and evaluation systems make this happen.
3. Build a Culture Based on Trust: Establish ground rules for work and life. Everyone, from owners to the front line, needs to walk their talk. No excuses.

Maybe I had beginner's luck, but I’ve used these exact strategies for 30 years, transforming hundreds of businesses and touching thousands of lives. The profits? Astronomical. The transformations? Priceless.

I’m on a mission to help family-owned businesses all over the world thrive for generations. I'm inspired to guide you step-by-step through this process. And if you hit a snag, I’m just a call away.

Because let’s face it: we need more family businesses that people can’t wait to be part of every day. And if you’re ready to be one of them, we’ve got your back.