Doing business is a family affair
Families find success, satisfaction working together
by Dana E. Blozis
According to the National Federation of Independent Businesses, in 2003, there were 1.2 million husband and wife teams running businesses in the United States. The Family Business Review reported in 1996 that 80 to 90 percent of all businesses in North America were family enterprises. Why is family business ownership so attractive, what factors are critical to the success of a family-owned company, and what special challenges face these businesses? To answer these questions, we interviewed local businesses to find out what keeps them together.
Ovenell’s Heritage Inn and Double O Ranch
Getting their start farming beef cattle on the Double O Ranch for 50 years, the Ovenell family of Skagit County saw a dip in the beef market in the early 1990s, causing them to rethink their business strategy. After 10 years of discussions, in 1997, the family expanded its offerings to include a bed and breakfast on their 580 acres, followed by the addition of cabins in 2000. Located south of Concrete, the ranch features breathtaking views of Mount Baker and access to the Skagit River.
Guests from all over the world visit the property, enjoying hiking, fishing, birdwatching, wildlife and farm animals including 200 head of Maine-Anjou cattle, two black Clydesdales (Skye and Champ) and two burrows (Festus and Sambo) who will reportedly do anything for bread. Eleanor Ovenell, co-owner of the business, said visitors particularly enjoy the top-to-bottom view of Mount Baker, enchanting ponds and gardens and the beauty and serenity of the property. They also enjoy the homemade desserts, family atmosphere and personal service.
“For years, friends would visit and tell us how much they loved the ranch,” Eleanor said. “We finally decided to open it up to the public. With the farm as a backdrop, people really enjoy it.”
The sole-proprietorship is co-owned by husband and wife team Norm and Eleanor Ovenell. The couples’ five daughters, all in their 30s, help their parents run the ranch and inn: Kathy, Kris, Cindy, Karin and Helen.
Norm, 84, is retired but still works on the ranch at his leisure, “doing what he wants.” Eleanor, 66, and the designated dreamer of the family, oversees the inn and ranch with her daughters’ help. In particular, Eleanor enjoys planting the flower and vegetable gardens and planning the landscaping.
She also checks in guests after 5 p.m. and answers the phone 24 hours a day, 7 days a week, 365 days a year. Kris assists with the running of the inn, while also specializing in obtaining permits, working with the Farm Service Agency, and contributing to conservation efforts. Cindy is responsible for the cattle and logging operations, while Helen handles the finances. Currently a stay-at-home mom, daughter Kathy contributes ideas and works with the company’s Web site. Karin, who is a home economics teacher in Sedro-Woolley, does catering for the inn.
With so many family members involved in the day-to-day operations of the business, how do they get along?
“We don’t always agree,” Eleanor explained, “So it gets a little dicey once in awhile.”
This comes from natural disagreements as well as too much togetherness at times, so Norm and Eleanor encourage their daughters to take vacations with their own families from time to time. They are careful not to hurt anyone’s feelings or to push the girls into taking on tasks they have no interest in. Instead, they encourage the girls to work in their areas of expertise.
Eleanor said the girls get along very well. They each have their own areas of interest and responsibility that they focus on. For decision making and conflict resolution, the family talks through the issues, operating on an informal basis.
“The girls are extremely close. I’m really proud of them,” Eleanor said. “They only have a problem with Mom. I’m a thorn in their side.”
Eleanor, who has lived on the property since marrying Norm in 1965, is hoping to retire in the coming years. The question remains as to who will replace her. While Eleanor assumes one of her daughters will step up, she said they aren’t ready to do so yet. Until then, she is comfortable continuing her role.
Although Eleanor deems the ranch and inn “a work in progress,” it is clear that the family enjoys working together and has enjoyed success in their niche. There are other advantages, as well. Eleanor, for example, loves seeing the girls every day.
“You love your kids and you get to see them all the time,” she said. “They are well-respected, powerful personalities in their own right. I’m proud of what they do.”
Norm and Eleanor are also pleased to be able to pass the business down to their children some day, perhaps even to a fourth generation of children. Daughter Kris and husband Tony Hansen have two sons, Scotty, 9, and Tyler, 6, who have already taken an interest in the business. The boys enjoy greeting guests, showing them the animals and pointing out areas of interest.
“They’re such little hosts,” Eleanor said of her grandsons.
Meyer Sign & Advertising Co.
Founded in 1956, Meyer Sign & Advertising Co. of Mount Vernon is celebrating its 50th anniversary this year. This local family business was originally owned by John Meyer before selling it to the second generation of family owners, daughter Tonnie and son-in-law Martin Boer.
Specializing in signs ranging in cost from $15 to $250,000, Martin and Tonnie Boer have enjoyed watching their business grow in their 38 years of ownership. Over the years Meyer Sign has served more than 3,000 customers, including over 150 primary customers. Although they work on many small signs, some of their biggest projects include the I-5 Auto World, Burlington Crossing and Swinomish Casino signs. The company primarily serves the western Washington area, although they boast a contract to provide signs for all the Wal-Mart stores in the state.
The company employs 22 people, including owners Martin and Tonnie and son Steve who works as a foreman in the service department. Many of his employees have worked for the Boer’s for more than 15 years.
“I have a wonderful crew,” Martin said. “I feel a tremendous responsibility to them.
After working together successfully for nearly 40 years, Martin shared some of his family’s secrets to success. First of all, Martin and Tonnie determined their roles early on, so they could focus on their strengths without overlapping responsibilities, defining their roles through discussion and experience.
For decision making, Martin and Tonnie openly discuss issues, often coming to a consensus. However, Martin readily admitted that he defers to Tonnie on financial matters, and she defers to him on employee issues and planning. In addition, the couple holds regular meetings with staff so they can get employee input.
“We have a very trusting relationship,” Martin said. “It has worked wonderfully for us.”
In addition to working with his wife and son, Martin has enjoyed the freedom that goes along with owning a family business. This is mostly due to the trust factor, Martin said. He is comfortable leaving his employees in charge when he wants to take time off.
Like Eleanor Ovenell, Martin also enjoys spending time with his family, citing strength, support, trust and honesty as the bonuses of working together.
Running a family business is not without its challenges, however. Martin recommends, for example, that business owners treat all employees the same whether or not they are members of the family.
“You have to be careful not to give preferential treatment to your family,” Martin cautioned. “It sends the wrong message to others.”
He applies this philosophy to his own situation.
“Steve’s my son and I love him, but he’s also an employee,” he said.
Martin also recommends that family businesses establish a clear chain of command. This system defines who the key decision makers are, while respecting the authority of each department and its managers.
Martin, age 63, expects son Steve to eventually take over the business, but Martin isn’t leaving any time soon.
“I see myself being around for a long time,” he said. “Why retire?”
Anacortes Yacht Charters
Founded in 1979, Anacortes Yacht Charters (AYC) was owned by Jim Shea for 10 years before selling the business to Dan Meyer. Meyer, who owned the business for a little over 15 years, then sold the business to his daughter Kristin Lovell and her husband Mike in January 2005.
Rated #1 by readers of Cruising World Magazine, the Anacortes-based company offers bareboat rentals anywhere from four days to nine weeks traveling as far as Desolation Sound and Alaska. AYC offers 90 power boats and sail boats, ranging in size from a 24-foot sailboat to a 66-foot queen ship power boat. In addition to the charters, the company offers skippered charters, private instruction, yachting and sailing classes, sailing camps and a yacht brokerage.
The privately held company is owned by Kristin and Mike Lovell. Kristin, who graduated from Western Washington University, worked as a CPA for years before joining AYC full-time. Having worked at the company for many summers prior to that, Kristin decided to switch careers to work at her father’s company. Husband Mike joined the company six years ago, after working at a family-owned boat building company in Bellingham for 10 years.
“We decided seven or eight years ago that this is what we wanted to do,” Kristin said. “This is a really neat family business.”
As for her father, Kristin said he is still actively involved in the business. Although he spends the winter months in Palm Springs, Dan Meyer assists with the charter business during the summer and heads up the yacht brokerage.
A variety of factors have helped to make AYC successful. In addition to its world-renowned charters and personalized service, the Lovell’s put a lot of thought into succession planning and family communication. After taking a family business workshop at Oregon State University, the entire family met with a counselor to discuss the future of the business and how each wanted to participate. In addition, Kristin and Mike received advice from other people who had been through similar transitions. As a result of this open communication, Kristin said her family is closer than ever.
Kristin and Mike admit, however, that family owned businesses need to be cognizant of their relationships with others. This includes holding family members to a higher standard and having an awareness of how their conversations impact their employees. Because they are husband and wife, Kristin and Mike think their decision making decisions may be perceived differently.
It is also important, the couple cautioned, to ensure that the family business doesn’t dominate other family discussions and outings. Instead, the focus should be on family when away from the business.
“It can’t dominate life outside of the business,” Mike said.
Working for a family-owned business can also be tricky, particularly for career-minded employees who may have a “ceiling” imposed on their growth.
“Employees have to be willing and accepting and excited about working for a family business,” Kristin said.
In their case, they don’t feel this is an issue. They feel fortunate to live in Anacortes and to be surrounded by a staff who shares their passion.
“We are so blessed and so fortunate,” Kristin said.
“It is an important part of society to foster small family businesses,” she added. “Customers like the family atmosphere and personal attention.”