From Ice to Funeral Directors

In 1907, Mr. Yopp’s grandfather, John W. Yopp, Sr., was an entrepreneur who saw a growing industry: ice and refrigeration. At the time, condensers and air conditioners were just being developed. Companies earned money by delivering blocks of ice to businesses and residences, where the blocks would be stored in wooden ice chests for refrigeration.

Mr. Yopp was interested in the industry, and he started a publication to inform the ice manufacturers and distributors and to help them network. The tabloid-style publication was produced 13 times a year or every fourth Monday and mailed around the nation. For content, he relied on the industry groups, advertisers, subscribers and others pertinent to the ice industry including the Southern Ice Exchange which is celebrating their 123rd anniversary this year.  With the growth in refrigeration, the elder Mr. Yopp changed the name of the publication to Refrigeration Magazine in 1912. The new name expanded the magazine’s reach.

In 1919, several friends of Mr. Yopp’s approached him about starting a magazine for funeral directors and the funeral industry.  Although Mr. Yopp knew very little of the funeral industry,he did know something about publishing.  Within a few months of discussions and reassurance from his peers in the industry, Southern Funeral Directors Magazine was launched with a similar mission of helping members of the industry connect.  Both magazines offered informative articles pertaining to their businesses along with features on the business themselves, convention and conference summaries and pictures along with a number of advertisers and a section for classified ads.. They relied on a combination of the ad sales and subscriptions for revenue. Refrigeration Magazine continued to have a national audience, while Southern Funeral Directors Magazine focused on 16 Southeastern states, with limited distribution to the remaining 44 states.

All printing was outsourced, as it is today. Until relatively recently, the job of laying out the magazine for print was a labor-intensive task of literally cutting and pasting images and copy. An old machine equipped with metal plates and pins was used to manage circulation. The metal pin would be inserted in the plate to mark the month when the subscription expired and would trigger the machine to print or skip an address.

Family Transitions

Mr. Yopp, Sr., died suddenly in the 1930s. His young wife, Beatrice O’Keefe Yopp, took over the publications. Previously, she’d been involved in Atlanta real estate, where she purchased, repaired and re-sold residential homes. She took over the magazines with little understanding of the business and ran them for several years. Eventually, she wanted to get back to the real estate business, and she leased the magazines to another editor.

Meanwhile, in 1943 John W. Yopp, Jr., was beginning his college education at Georgia Tech. He paused his college career midway to fight in World War II in the Air Force. When he came home from Germany in 1946, he attended the University of Georgia and earned his degree in Journalism.  His mother wanted him to work in a different industry before coming to the magazine.  So he joined Trust Company Bank (now SunTrust) for several years before coming in as publisher and editor at the family business. Mr. Yopp, III, says the time at the bank helped his father understand “what to do and what not to do” in the management and financial side of running the family’s enterprise.

Mrs. Yopp had managed the business directly or indirectly for 20 years before her son came to work. When he took over in 1953, the business had seven employees in three departments – editorial, advertising and circulation. Mr. Yopp, Jr., started a third publication, Southern Cemetery, which was produced bi-monthly. That publication is no longer produced, as it was combined in to the funeral magazine.

Mr. Yopp, III, remembers that when he was about 8-years-old his father drove him to a typing class on Atlanta’s Spring Street each Saturday morning. Following his class, the weekly reward was a trip to the nearby Varsity restaurant to celebrate. He recalls sitting at an old typewriter to type cards with subscribers’ addresses, not understanding that he was beginning to help learn and edit the magazines’ circulation.

The younger Mr. Yopp graduated from Northside High School in 1975 and enrolled at UGA and majored in Journalism with a minor in Business.  Even though he would attend funeral industry conventions during the mid-70’s, he officially started working for the family business in 1979 along with his sister, Mary Yopp following her college education at UGA.   Ms. Cronley focused on the editorial side of the business, while the two Mr. Yopp’s traveled together to network with advertisers and cover events at different state funeral and ice associations.

Mr. Yopp, III, worked with the magazines for about 12 years before leaving in 1989 to work for a funeral home acquisition company. In the 1990s, Mary Yopp Cronley and her husband purchased the business from her dad through a 10-year buyout plan. Mr. Yopp, Jr., was still visible, continuing to network with advertisers. Meanwhile, Mr. Yopp, III, kept working in the funeral home acquisition and consulting worlds. His sister gave birth to a son and, two years later, to triplet sons. In 2006, she called her brother and said she was too busy and either the magazines or the boys had to go. With that, Mr. Yopp, III, returned, leaving the door open for sister to help if needed.

Mr. Yopp says that technology had changed the publishing industry tremendously from his departure in 1989 to his return in 2006. With the changes, the publishers can get more precise and more timely material to their subscribers and readers. Mr. Yopp says the magazines give producers of products and services an opportunity to speak directly to industry leaders through articles they submit, paid advertising, and classified ads. Some articles are online, but subscribers in both industries have made it clear they want hard copies of the magazines to keep for referencing certain articles, business features, advertising information and pictures from certain state and national meetings.. Generally, they don’t even throw them away when the next edition arrives.  It is not uncommon to find some businesses that will keep the issues going back 20-30 years.

Future of the Family Business

Mr. Yopp says the door is left open for any of his nephews–who are still fairly young—or for either of his three daughters to join the business. His daughters are young adults with, but they have not yet expressed an interest in coming to work for the magazines. Still, Mr. Yopp says he is ready to welcome any of them should they want the opportunity.

Mr. Yopp says the publishing industry and seems to have stabilized, with numbers trending better than normal compared to a year ago at this time.  He says the need for trade publications is still there—people still have products and services to sell, and magazines are their avenue for telling people why they should buy them.

Family Business and the Funeral Home Industry

The two largest industries in the family-owned business world are agriculture and funeral homes. Mr. Yopp reported that there are 19,670 funeral homes in the U.S., many of them owned by families. From 1985 to 1998, there was a tremendous amount of consolidation of funeral homes and cemeteries.  You had small regional companies that would acquire 50-100 properties, then they would be acquired by the larger publicly traded funeral home companies.  Because of the large number of broker houses and venture capital groups in the U.S., acquisition funds were plentiful and led to extremely high multiples on purchase prices, thus allowing independent owners to sell at a much higher price than originally anticipated.

Unfortunately, many of these large acquisition companies were unable to make their shareholders happy.  Lawsuits, mis-management, loss of business and other losses followed. Wall Street monies dried up and they started demanding that acquisition companies stop buying the funeral homes and begin to effectively manage what they had acquired. Already having overpaid for many of their deals, pro forma’s, budgets and heft goals fell way short of their projections leading to a tremendous slow down in the acquisition market.  Today, there are a small number of publicly traded companies and a few regional acquirers that are in existence.  Firms are still acquired, but in smaller volume with more realistic purchase prices being paid.

About 10 years ago, the buying slowed down. Families that weren’t ready to sell during the frenzy are now looking at selling within their families or to key employees rather than a larger corporation. In other cases, non-compete clauses are expiring. Families that sold out during the 80’s and 90’s and invested their money well, are considering getting back into the business for themselves or the next generation. Many were able to sell high and are re-purchasing at lower prices.  Being locally owned and operated is still a big advantage in the industry.

The cost to start a new funeral home in the current market is well more than $100 per square foot, with about a 7,000 to 8,000 square foot facility needed at the outset. With equipment, furniture and other incidentals, the cost to enter the business is about $1.2 million.

Mr. Yopp says there aren’t many children of current funeral home owners who are choosing to carry on the family enterprise. Because of the high cost, it’s difficult for key employees to purchase the funeral homes.  A couple of lenders have emerged that are willing to concentrate more on cash flow lending than asset lending.

Another trend in the funeral home business is a move to more cremations. Georgia once had only one or two crematories, and now there are about 75 in the state. With greater availability, people see them as more of a memorialization option. Cremation is often chosen for economic reasons, too.

While South Georgia’s funeral practices are still largely based on the traditional burial—even to the point of choosing a funeral home based on family tradition—the transient nature of Atlanta means that more families are choosing cremation. Other than the metropolitan cities in the southeast, the region is still known as “the Bible Belt” and lends itself to more traditional burials where you have a service, casket, vault, cemetery plot and bronze marker or upright granite/marble headstone.  Similarly, the many retirees who have settled in Florida and in coastal towns are sometimes disconnected from family or have no family remaining. They will often choose cremation. For funeral home directors, the challenge is to help families memorialize their lost loved ones in new ways.

The case of Ray Brent Marsh, the man who accepted bodies for cremation but then buried them on the backside of his property, impacted the funeral home industry primarily in the diligence required to make sure bodies are handled properly. The funeral homes were not at fault in these cases, but they now are more careful about their liability and verify each step in the cremation process. Georgia’s laws and policies now require stricter documentation, too.

Another challenge for today’s funeral home directors is maintaining and growing market share. The death rate generally remains at 1.2 percent of the population, so funeral homes have to market their firms and services in more effective ways to the families of their communities.  One means of servicing families is pre-need arrangements, in which individuals and families make funeral arrangements long before they expect to need them. They pay for the arrangements over many years, establishing a long-term relationship with the funeral home. Georgia laws allow the funeral home to either trust a 100% of the monies paid in or use an insurance product to insure the final funeral costs.

More so in the last 10 years, as an additional service, many funeral homes have expanded into pet loss care. They may provide cremation, a burial ground, and even memorial services for the beloved pets. This is another means of expanding markets.

Changes in the Refrigeration Industry

Mr. Yopp reports that the refrigeration industry also went through a period of acquisitions and consolidation. He witnessed similar events as those in the funeral home industry, where acquisition companies overpaid for the plants, couldn’t operate them efficiently and closed many. There is now one major family-owned company and two struggling publicly owned companies in the industry.

Preparing for Mergers and Acquisitions

Part of Mr. Yopp’s business now is to consult with companies on succession planning and mergers and acquisitions. He says the first order of business for family business owners is to have a plan in place. Next, especially if you think you might want to retire in a few years, go ahead and start running the business as if you’re selling tomorrow. That means cleaning up the financial statements, balance sheet, buying smarter, correcting areas where revenue is soft, and adjusting prices. All of these steps will not only make the business more attractive to lenders, but also increase the value of the company and profitability.

Mr. Yopp plans to continue helping families through his magazines and his M&A consulting. He enjoys helping families find financing, create plans together, then grow as a business and a family.  As mentioned earlier, he’s excited to have found some new lenders this year who are making  loans based on cash flow. That means key employees in funeral homes may have the ability to purchase. The lender looks at cash flow, call history, recurring business, stability and the potential buyer’s role in the business. Mr. Yopp is optimistic about the opportunities these new loans present for the creation of more family businesses.

John W. Yopp, III’s  3 Tips for Family Businesses

1. Communication and relationship building are keys to success. He lists nine words to implement in any relationship in order to achieve your goals: Acceptance, Affection, Approval, Appreciation, Attention, Empathy, Respect, Security and Support.
2. Don’t rely on Legislation for your company’s growth and recovery. It starts with “Me.” The owner must put faith in the heritage and tradition of the firm and what it’s created and accomplished in the past, then go the extra mile and make the extra sales call needed to be more successful.
3. Your Behavior Reveals Your Heart. How you conduct your business affects those you touch.  Ethical and Professional will win out every time.

Contact our Guest:

John W. Yopp, III
Publisher and Editor
Southern Funeral Director Magazine and Refrigeration Magazine
President and Owner
Extreme Marketing Group, LLC
P.O. Box 768152
Roswell, GA 30076
Phone: 404.513.9405

Email: johnyopp3@aol.com

Website: www.southernfuneraldirectormagazine.com
www.refrigerationmagazine.com

Family Business Radio

The Yopp family’s magazines were edited and published by the senior Mr. Yopp’s wife, Beatrice O’Keefe Yopp, from the time of his passing in the 1930s until her son, John, Jr., took over the business in 1955. During the 1990s, Mary Yopp Cronley purchased the business from John, Jr. She ran it until 2005, when John, III, became publisher and editor.

In addition to running the family’s publishing business, John is also president and owner of Extreme Marketing Group, LLC, where he provides marketing, business succession, M&A, and capital procurement for small to medium sized privately held businesses. Born and raised in Atlanta, he attended the University of Georgia, where he majored in journalism and business. In addition to working with his family, John has been associated with several major and publicly traded funeral home acquisition companies in their corporate development departments. He also has worked with ReMax of Atlanta and Cigna Individual Financial Services.

About Our Guest:

John W. Yopp, III
Publisher and Editor
Southern Funeral Director Magazine and Refrigeration Magazine
President and Owner
Extreme Marketing Group, LLC
P.O. Box 768152
Roswell, GA 30076
Phone: 404.513.9405

Email: johnyopp3@aol.com
Website: www.southernfuneraldirectormagazine.com
www.refrigerationmagazine.com

Family Enterprise USA, the First Nonprofit for Family Businesses

A national advocacy group for family businesses, Family Enterprise USA focuses on the public image of family enterprises and the public policies that affect them. Founded in 2009, Family Enterprise USA aims to create an identity for the family business industry—an industry that many inside and out don’t realize exists.

The first nonprofit organization to represent family businesses, Family Enterprise USA (FEUSA) represents a broad group. There are no size limitations, but businesses all have the common factors of multigenerational ownership and the desire to continue for future generations.

According to Kinkade, FEUSA is getting the word out about family enterprises in three primary ways. Their first effort is a general public relations campaign to raise awareness about family businesses, their contributions and the unique ways they are affected by public policies. Already, they have had stories appear in Forbes magazine, the Wall Street Journal and in The Hill, a Washington, D.C., publication.

Second, FEUSA is focusing on conducting and sharing research. They are currently conducting their second survey of family businesses. National in scope, the survey asks family business members at the C-level and above to identify the issues that are most important to them. Among the issues that may be identified are those surrounding estate taxes, capital gains, dividends, healthcare, and tax deductibility of contributions to family foundations. Any current or proposed regulations that impact family businesses could be identified through the survey and addressed through FEUSA’s work.

The results of FEUSA’s first and second surveys verified the need for the organization. The second survey asked respondents if external or internal factors were a greater threat to their long term continuity. More than 80 percent identified external factors. When asked if their trade associations understand the issues that differentiate family business, 40 percent responded “no,” and 16 percent said they are not members of an association.

The FEUSA team surmised that external issues are indeed a threat to family businesses, and their interests are not adequately represented. That’s where FEUSA comes in with their third and final role, advocacy.

Kinkade says advocacy takes the form of both education and lobbying. Education involves getting the word out about the important role family enterprises play in the American economy. Many policy makers simply don’t think about family enterprises or take time to understand how policies might affect them, leading to what Richardson (who is also a FEUSA board member) calls the “law of unintended consequences.” FEUSA hopes to keep the importance of family enterprise top of mind for decision makers.

This year for the first time, as part of their educational efforts, they will take a group of family enterprise owners to Washington, D.C., in May to share their own voices and learn about the decision-making process in our nation’s capital. As a relatively new organization, FEUSA has done no lobbying yet.

Family Enterprise Contributions

As the FEUSA staff members and board members educate family enterprise owners and policy makers about the industry, they demonstrate the impact of family-owned businesses on the economy:

• 57% of the nation’s gross domestic product is generated by family enterprises.
• 63% of the nation’s workforce is employed by family enterprises, compared with 14% employed by federal, state and local governments.

Kinkade asserts that the nation’s economy can’t move forward without considering and including family enterprise.

More family business facts illustrate the stability these organizations bring to communities. For example, family enterprises are less likely to lay off employees during a recession. They also are less likely to incur debt, making their businesses more adept in tough times. Kinkade says that family enterprises are more likely than other businesses to invest in “patient capital.” That is, rather than meeting quarterly or annual goals, they tend to look at long-term objectives. Many family enterprise owners have told her they could make more money or make money faster, but they don’t want to compromise the organization’s ability to survive the long term for future generations.

White Castle Illustrates Family Enterprise Values

As a fourth-generation family member at White Castle, Mr. Richardson shared that the values typical of most family enterprises are also present in his family’s 90-year-old company. White Castle started when Billy Ingram and Walt Anderson began selling hamburgers out of window in 1921. Inspired by Mr. Ingram’s visit to Chicago’s Water Tower Building, the pair chose the company name to represent cleanliness (White) and strength and permanence (Castle).

Cleanliness was an important issue because Upton Sinclair’s classic novel The Jungle had exposed problems in the meat packing industry a decade or so previously, and people of the time really didn’t eat hamburger meat. White Castle used 100 percent beef and sold their burgers for 5 cents. The idea caught on, and the company grew. The partners had borrowed $700 to get the company going. They paid it back in 90 days, and White Castle has been virtually debt free ever since. Remaining debt free is one of the core values that drive the business.

Quality has also remained vital to White Castle. They never franchised so they could maintain consistency, and they even opened their own bakeries and meat plants to maintain control. In the 1940s, when laundry costs were high, they opened a factory to make paper hats, launching the craze of the 1950s. The biggest change came 25 years ago when they became the first to sell hamburgers and cheeseburgers in the grocery store freezer aisle. They have two manufacturing plants to produce the products, which they sell throughout the country. They also sell burgers through vending machines.

Richardson says that White Castle put people first from the beginning, and treating people right is another of their core values. Founder Billy Ingram used to say, “We have no right to expect loyalty except from those to whom we are loyal.” The saying now has become, “Happy employees make happy customers.” The idea is the same. If employees are loyal and secure in their jobs, they will serve customers well and help to build a loyal customer base.

Those loyal customers are called “Cravers,” and they enjoy not only the taste of the burgers, but also the experience that comes with White Castle. When White Castle invited customers to submit their stories, they learned about weddings self-catered with their burgers and a home decorated with White Castle décor each Christmas. They recognize each year’s top 10 Cravers by inducting them in the Cravers Hall of Fame.

But how does White Castle engender loyalty in employees? The company has offered employees health insurance since 1924. They also give employees a profit-sharing plan and a defined benefit pension plan. While such plans are uncommon in today’s environment, they have allowed White Castle employees who may have held one position their entire careers to retire as millionaires.

Billy Ingram bought out his partner in the 1930s, and White Castle has been a family enterprise ever since. Now run by the third and fourth generation members, the company holds family ownership as an additional core value. Family meetings are held each summer, and much of the focus now is on the 26 members of the fifth generation.

Ranging in age from 4 months to 26 years, many of the fifth generation members fall between the ages of 8 and 12. They are learning about the business and its values. They also are learning basic business principles. Last summer the 5th generation members made cookies and sold them at the home office. They thought they had made a lot of money, then they had to pay for typical items like ingredients and taxes. Richardson says exercises like this are helping them get ready for the future.

“From White Castle to the White House”

While White Castle’s model clearly demonstrates the entrepreneurial spirit and the values that are common to most family businesses, their interest in FEUSA comes about because they have found their company greatly impacted by regulation.

In fact, they have staff members dedicated to determining how regulations will impact the company. With the proposed healthcare changes, for example, one part of the law says if the portion the employee pays for a healthcare premium is greater than 9 ½  percent of his or her household income, the company can be fined $3,000 per employee. White Castle staff leaders have determined this could cost the company 55 percent of their net income on an annual basis.

Richardson says White Castle had to speak up. While he says he believes the law, like most policies, was well intentioned, it did not consider the impact on family-owned businesses. Representatives from White Castle actually met with President Obama’s Healthcare Czar, and a new ruling takes their concerns into account.

Speaking out and joining with other family enterprises is now a priority for White Castle because regulations can threaten the long term survival of the company. But Richardson says he approaches meetings with the idea that “politicians are people, too.” He says that thought leaders on both sides of the aisle want to understand the impact of their ideas, and they may not know if family enterprise owners don’t speak up.

In an effort to get more family enterprises involved, Richardson and Kinkade are traveling around the country presenting “From White Castle to the White House.” Richardson shares some of White Castle’s efforts, and the two talk about the value of working together to be heard. They also tell the FEUSA story and how the organization is there to fill an unmet need for this important segment of the economy. Finally, they encourage others to get involved and take action.

The speaking tour has been hosted by many types of organizations throughout the country. University-based family business centers, such as the Cox Family Enterprise Center at Kennesaw State University, have hosted about 12 of the seminars. A recent appearance in Seattle was sponsored by two family enterprise owners, and an owner will also host an upcoming engagement in Florida. In Grand Rapids, MI, the Chamber of Commerce sponsored the visit.

Kinkade says this process is creating connections and grassroots energy. As an illustration of interest, Kinkade says their Facebook page had 60 fans in May of 2010. It now has more than 10,000 fans. Business owners are saying they’re excited that someone is finally standing up for family enterprises.

FEUSA Moving Forward

Kinkade says FEUSA will work toward its tagline of facilitating “Enterprising Families Working Together.” FEUSA is looking for people willing to speak as experts in the field. FEUSA is still forming platform so the group can form a collective voice.

Kinkade also hopes to continue learning more about family enterprises. For example, many of them use the word “integrity” or similar sentiments in their values. She would like to know more about how integrity is implemented and what drives decision making in family enterprises.

FEUSA will continue to drive policy questions. The organization is bigger than the solving of just one issue, but will stick around to make sure people in decision-making roles view regulations through the eyes of family businesses.

FEUSA is also collecting stories about family enterprises. During the “From White Castle to the White House” tour, Kinkade and Richardson are conducting interviews and creating videos to form a quilt of stories to place on the FEUSA website.

Meanwhile, FEUSA invites family enterprises to participate in the survey found at www.familyenterpriseusa.org. The survey will be live through January 31, 2012, with results to be released in February.

Three Tips for Family Enterprises

1. Learn about the family business industry.
   Ann Kinkade’s perspective: Know as much about the family business industry as you do about your trade’s industry. The underlying assumption is that your family’s involvement as owners makes a positive difference.
   Jamie Richardson’s perspective: There’s no substitute for shared experiences. Spend time with other family enterprises and realize you’re not the only one facing these challenges. There’s merit in many enterprises coming together.
2. Develop, cultivate and create pride and passion in what you do.
   AK: Start with the ownership group itself, then go to employees and customers.
   JR: It’s about engagement. Whether you’re a family member owner or a family team member, you’re all giving your life to the company. You’re in business together.
3. Pay attention to public policy and get involved.
   AK: Most family businesses aren’t used to joining with others, but we can align collectively to make a difference.
   JR: White Castle is just getting started with doing this. In June, team members went to Washington, DC, to “Cook Castles for Congress.” Team members made 5,000 burgers in 62 minutes.

Contact Our Guests:

Ann Kinkade
President
Family Enterprise USA
1110 Harmon Place
Minneapolis, MN 55403
Phone: 651.962.4170
Email: akinkade@familyenterpriseusa.org
Website: www.familyenterpriseusa.org

Jamie Richardson
Vice President
White Castle
555 West Goodale Street
Columbus, OH 43215
Email: jamierichardson@whitecastle.com
Website: www.whitecastle.com

Ann Kinkade

Ms. Kinkade brings over two decades of business experience, working exclusively with business-owning families in a variety of contexts for over a decade. In 2009, she launched Family Enterprise USA, the nation’s first non-profit advocacy group dedicated to addressing family enterprise public image and public policy issues. Since committing to the family enterprise field as a vocation, Ms. Kinkade has attended, presented and led numerous conferences and educational seminars. Her expertise in family enterprise includes governance, leadership, succession planning, communication, interpersonal and family relations, and other topics. Ms. Kinkade holds a Master of Business Administration and a Bachelor of Arts in psychology from the University of Wisconsin-Madison.

Jamie Richardson

Mr. Richardson is an “Ultimate Craver” who took his love of White Castle hamburgers to its logical extreme, joining the White Castle home office team in 1998. He serves as vice president, corporate relations, responsible for government affairs, shareholder relations, public relations and community relations. Previously, he served as director of marketing. Mr. Richardson serves on a number of boards, including Family Enterprise USA, the Conway Family Business Center and the National Council of Chain Restaurants, among others. He is a graduate of Siena Heights University where he majored in business administration and  Ohio Dominican University where he earned his MBA degree.

About Our Guests:

Ann Kinkade
President
Family Enterprise USA
1110 Harmon Place
Minneapolis, MN 55403
Phone: 651.962.4170
Email: akinkade@familyenterpriseusa.org
Website: www.familyenterpriseusa.org

Jamie Richardson
Vice President, Corporate Affairs
White Castle
555 West Goodale Street
Columbus, OH 43215
Email: richarit@whitecastle.com
Website: www.whitecastle.com

From Side Business to Family Business

Neil’s father immigrated from India in the late 1960s and settled in Huntsville, Ala., where he worked as a professor at Alabama A&M University. In the late 1970s, he began investing in real estate as a side business. Neil says what started as an investment in a duplex gradually grew to investments in larger properties and finally in single-family lots, townhome development and land speculation. Over the years, the company experienced what Neil calls, “patient growth.”

Real estate remained a side business until 2004 when the elder Mr. Sapra retired from teaching. Neil says his father had wanted both him and his brother to establish their own careers and did not plan for them to join the real estate investing company he named after them. Neil worked with an investment firm that grew through the 1990s technology boom. Though he had resisted his father’s business when he was younger, he found himself back in real estate for more “tangible” investments. He then worked with a European private equity group focused on real estate investment in the U.S. Meanwhile, younger brother Nitesh established a career in multi-family real estate.

Ultimately, with a little help from their mom, the brothers convinced their dad that their joining the company would not only help them advance their careers but also bring resources and skills the company didn’t have. When Neil joined NitNeil in 2006, the firm had a solid investment portfolio, but business protocols were not established. Neil spent his first year taking the opportunity his father had created and working with his dad and other employees to create more opportunities and openings for future generations. Nitesh joined the company in 2008 when the position best suited for his skills became available.

Conservative Investments Lead to Inc. Magazine’s Fastest Growing List

NitNeil Partners chose to invest in self storage properties for several reasons. First, both Neil and Nitesh had backgrounds in multi-family real estate, and the industries are similar. The self storage industry is fragmented, with 90 percent of properties owned by independent “mom & pops,” but it’s going through a time of consolidation. The opportunity was there for NitNeil Partners to assemble a large portfolio through the development and acquisition of these properties. With the current inefficiencies in the industry, NitNeil could bring efficiencies through economies of scale.

NitNeil Partners also realized that demand for self storage is insulated from economic times, so it represents a conservative investment class. It fits into the company’s policy of being a net buyer and selling very little. They build net worth and equity through cash flow, asset appreciation and paying back debt. Their conservative approach helped them get through the recent adverse real estate market conditions. The company currently has $50 million in assets. Self storage represents $35 to $40 million, and the remainder is apartments and land. For the last two years NitNeil Partners has been named to Inc. Magazines’ list of 5,000 fastest growing companies.

Adding Value in the Day-to-Day

NitNeil started out developing storage properties, but over the past few years they have acquired existing units. Now they are looking at converting an old office warehouse building in Atlanta’s Inman Park neighborhood as an adaptive reuse project.

The process of acquiring real estate for self storage begins with feasibility analysis to determine the cities and submarkets where storage facilities are in demand. That demand is driven by people in transition, so clients are usually military families, couples going through divorce, college students, retiring baby boomers and small business owners. By focusing on demographics and population density within a three-mile radius of the proposed property, the partners can assess the demand for the units.

Once the right cities and submarkets are located, the NitNeil staff members begin a grassroots effort to locate potential sellers. They use brokers and the local self storage associations for leads, but many of the self storage owners don’t engage brokers. NitNeil staff members do a lot of personal networking to find the sellers.

Once a property is under contract, the company performs due diligence and works toward closing. One of Neil’s roles is to secure financing. Once an existing self-storage facility is purchased, it is rebranded “The Storage Neighbor” and handed over to NitNeil’s management company by the same name. Here, it falls under Nitesh’s role of overseeing the management and day-to-day operations of the self storage facilities. Neil says that the investments’ value is extracted through these day-to-day activities, and Nitesh’s skill set is best suited for their oversight.

Working Together as a Family

Neil says his father, who is one of the three partners along with Neil and Nitesh, is semi-retired, but he still has his “finger on the pulse of the company.” One challenge the trio has tried to overcome is splitting personal and work time. One way they’ve improved in the area is by establishing regular meetings. Each week, they have a 15 to 20 minute conference call in which each partner takes about five minutes to update the others on things he’s working on. Once a month, they have a two hour, in-person meeting with a prepared agenda. They hold a slightly longer half-to-full-day meeting once a quarter, when they review quarterly financials. The process not only helps them keep business talk out of family dinner conversations, but it also instills accountability.

Neil, Nitesh and their dad represent different generations, philosophies and lifestyles. At times they realized their decision making processes and growth strategies were misaligned. By discussing issues, they’ve come to agreement.

As part of that process, they have taken skills and personality tests. These tests help them determine how best to work together and which roles are best suited for each within the company. The tests are also used as a tool to recruit and retain employees. They find the process works best when they hire for a fit with the company culture, then train on the skills.

The current partners are all family members, and the 18 additional employees are part of the business’s family-style culture. In fact, NitNeil has listed both family and community among its core values. The community ties are especially important in The Storage Neighbor division of the business, where the company relies on local areas for support.

NitNeil Patners in the Future

Neil believes that the self storage industry is stable because people are always collecting things and because people move more—are in transition more—than in past generations. He foresees a focus on growing the self storage part of the business but also looking for growth in other areas of real estate. He says the partners will continue their conservative approach to growth and invest in ways to preserve capital.

NitNeil will also look to expand outside of its current North Alabama and Atlanta markets. To facilitate growth, they may align with an outside investor who shares their core values and strategies. Such an investor would likely assume a limited or passive role in the management of the company.

Finally, the partners are focusing on ways to displace themselves from the critical functions of the company so it becomes self-sustaining. This will allow the partners to focus on strategies and growth opportunities.

Neil Sapra’s Tips for Family Business

1. Identify the personalities and skill sets within the organization. Knowing your family members’ strengths can be powerful in defining growth and operational strategies, plus it helps families work more efficiently together. Understand each person’s vision for the family business and use the differences as a strength.
2. Each family member should have his or her own sandbox. Whether it’s a unit, a division or a geographic area, each family member should have one area he or she is ultimately responsible for in the day-to-day management.
3. Operate and grow your business with an ultimate exit strategy in mind. Whether you intend to sell or not, making decisions with the perspective of an outside investor in mind improves your strategies, process and infrastructure.

Contact Our Guest:

Neil K. Sapra
Principal
NitNeil Partners

Silhouette Midtown
1447 Peachtree Street, Suite 470
Atlanta, GA 30309
Phone: 678.701.9305
Email: neil@nitneilpartners.com
Website: www.nitneil.com and www.storageneighbor.com

Nation’s first black-owned daily paper, first syndicated reporting

Ms. Scott’s grandfather, William A. Scott, II, was born in Mississippi. He earned a two-year degree from Jackson State College, then he came to Atlanta to attend Morehouse College. Afterwards, he worked one year as the only black clerk on the Jacksonville, Fla., to Washington, D.C., rail line. Family lore says that the white clerks would not speak to him, so he rode in silence for the full year. During that time, he realized that black people didn’t know a lot about black-owned businesses and whom to call for services. Mr. Scott published a Jacksonville, Fla., business directory to help them find each other in 1927. In 1928, he did the same for Atlanta.

While Mr. Scott had plans to publish similar directories around the region, some black Atlanta businessmen convinced him that an alternative newspaper was needed in the city. The Atlanta Journal and Atlanta Constitution—separate newspapers with separate owners in those days—operated under the “cultural mores of the time,” according to Ms. Scott, and covered little positive news about the black community. Mr. Scott founded a weekly paper, the Atlanta World, in 1928. By 1932, it had grown into a daily publication. As the Atlanta Daily World, it became the nation’s first black-owned daily newspaper in the 20th century.

But Mr. Scott did not stop with Atlanta. He also published the Birmingham World and the Memphis World. He employed his Atlanta printing press to produce 40 other weekly newspapers as well, spanning as far north as New Jersey, as far west as Texas, and into the Midwest as far as Michigan. Mr. Scott used each city’s local news for the front page of each paper, then consolidated the information on the inside, helping cities to share news. Because of this practice, he is credited as the first publisher, white or black, to syndicate content.

In 1934, shortly after returning from a trip to Havana, Cuba, where he planned to start a newspaper, he was killed in what would be called a drive-by shooting today. The family says he also had with him the paperwork to start a radio station, evidence that he was looking toward the future for ways to get news out to the nation’s African-American community. At the time of Mr. Scott’s death, Alexis Scott’s father was just 11 years old. Her father’s uncle, C.A. Scott, took over publication of the paper at the age of 26. He published the paper until 1997, when Alexis Scott became publisher.

A family affair

Through the decades, the Atlanta Daily World benefited from the involvement of many family members. Ms. Scott says the tragedy of her grandfather’s death pulled most of her grandfather’s eight siblings into the business to keep it going. One of the brothers held multiple Ph.D.’s and was more academically inclined than interested in the business, but even he wrote occasional columns for the paper. Other brothers helped with production and the presses, and the sisters also became involved.

Ms. Scott’s great-grandmother – the founder’s mother — came to work as a cashier and office manager. Ms. Scott’s grandmother was divorced from her grandfather at the time of his death and had worked for the Birmingham paper, but even she moved to Atlanta to help the business survive. Ms. Scott’s father grew up and was drafted into World War II, then returned to work for the paper as well.

After the founder’s death, shares of the business were split among his mother and siblings. As they passed away, they split their shares among their children. When Alexis Scott took over as publisher in 1997, the business had 25 shareholders.

Atlanta Daily World and the changing society

When blacks started going to World War II, black media highlighted the involvement of African-Americans and their support of the U.S. war effort. Ironically, black soldiers were fighting for rights abroad that they did not enjoy at home. The Pittsburgh Courier led the “Double V Campaign,” calling for victory abroad and at home. The idea was that blacks would help to secure freedoms overseas then come home and secure them here.

Ms. Scott says the movement during and following WWII was a precursor to the modern Civil Rights Movement. When the GIs returned from war, they were eligible for educational assistance. She says her father applied at Georgia Institute of Technology, knowing he would not be admitted, but testing the system. Blacks found other ways to test the system while continuing to pursue equal opportunities through court cases. They led voter registration drives. In the early 1950s, ministers in Atlanta organized a bus campaign. Blacks fought for equal access to public parks, equal pay for teachers and many other equalities. All of the efforts were reported on the front pages of the Atlanta Daily World.

Through these peaceful times, the Atlanta Daily World continued to do well from a business standpoint. However, once mass demonstrations began, advertisers threatened to pull their business if the demonstrations didn’t stop. Publisher C.A. Scott used his influence to try to stop the protests not only in the interest of his business but also because he thought the demonstrations were dangerous and people who were arrested would be negatively affected in the job market later. Of course, the movement was much larger than Atlanta, and the protests continued.

After desegregation, the Atlanta Daily World continued to serve the black community. Though strides were made in mainstream coverage, Ms. Scott says it took many years for the larger papers to see the value in covering all groups. Advertisers, however, were not as eager to spend money on a niche paper because they said the mainstream media now reached everyone. Many Atlanta Daily World reporters left the paper, too, seeking bigger audiences and more opportunities for advancement.

The paper had begun publishing only six days per week during WWII to save paper. Now, in 1970, it went down to five days per week, then four. The printing press, which was the same machine used in 1928, was closed in 1970. By the late 1990s, publication had diminished to two days per week. In 1999, when they introduced their website with daily content, the paper went back to weekly print editions in 2003.

Atlanta Daily World

Ms. Scott says she always had some involvement with the family business. Her dad was circulation manager, and she often went with him on Saturdays to collect money from the newsboys who delivered the paper.

She also was always aware of her family’s important role in the Civil Rights Movement. During her childhood, says the papers always published a spread during Black History Week. It would feature Frederick Douglass, Booker T. Washington, Carter Wilson, Abraham Lincoln, and her grandfather. The underlying message to her was that she was part of something big.

Ms. Scott attended Barnard College, a women’s college at Columbia University in New York City. She later become a journalist for the Atlanta Journal-Constitution. A cousin once said when strangers asked her father why she didn’t come to work with the family, her father replied, “She’s in training.” However, he never said as much to her. It was after his death that she made the decision to join the family business.

Meanwhile, Ms. Scott moved from journalist to vice president of community affairs at the Atlanta Journal-Constitution. In her role, she met weekly with all department heads at the paper. Each gave an update and asked questions of the others, so she learned about all aspects of the business. Later, she worked four years as Cox Enterprises’ director of diversity. She traveled around the country overseeing diversity training and management development training as she sought to increase the hiring of women and people of color in Cox Enterprises businesses.

About five years after the death of her father, when her Great-uncle was failing in health, her cousin called and asked her to help the family business. The business had been incorporated in 1983 (previously being run under her grandfather’s estate). There was an informal board of directors, but there were no other formal business systems in place.

One of the first things Ms. Scott and her cousin did was to visit the Cox Family Enterprise Center at Kennesaw State University. Through the classes, she learned how to introduce business practices into the family arena. She also had outside experience, which she learned through seminars at the Cox Family Enterprise Center was a valuable asset.

Before joining the Atlanta Daily World, Ms. Scott said she was aware of some tensions and issues at the paper. She knew there was work to be done. The paper still looked the same as it had 30 years before. She learned that the advertising rates had not been raised in at least 10 years. The paper was still put together in the old-fashioned paste-up method.

After the board of directors named her chairman, she was able to institute more changes. Within two or three months they modernized the layout process. It took two or three more years before they got the software for full electronic production. Ms. Scott says her Great-uncle toured the facilities about a year before his death and was pleased with the changes in the way the paper looked (color had been added) and he “marveled” at the computers and modernization.

Ms. Scott says the decision to move from her role at Cox Enterprises into the family business was a big one. However, she knew the family strength that had come out of the tragedy of her grandfather’s death. She recognized their commitment to maintaining the newspaper, and she realized she would not be all right with it if she didn’t help.

Atlanta Daily World now and into the future

The Scott family now holds annual shareholders meetings, and the board of directors meets quarterly. Currently, the board is composed of family members representing two generations. Three of the five board members are in the business.

The paper still serves Atlanta’s black community, though Ms. Scott says that newcomers to Atlanta don’t know the story behind the paper. Black residents are not a separate community anymore, and have great representation in local political offices and in high-profile places such as sports and business. The Atlanta Journal-Constitution also provides coverage for the black community.

However, Ms. Scott says the paper still plays a significant role in Atlanta media. Last September, she and her family were inducted into the inaugural class of the Hall of Fame for the Atlanta Press Club. It’s an honor they share with local media greats such as Ted Turner and Henry Grady. She says it’s good to get recognition for her family’s legacy.

While she says the newspaper industry faces a “scary” future, the Atlanta Daily World is  looking into potential strategic alliances in terms of new media so they can help their advertisers get more exposure. As with other newspapers, they still garner more money for print advertising than online advertising. They face the challenge of maintaining and growing while reader habits are changing.

They have found one new revenue stream through the licensing of their name for three news stands at Hartsfield-Jackson Atlanta International Airport. The stores carry the newspaper’s name, and the paper gets paid licensing fees based on the stores’ proceeds. In addition to the additional funds, the partnership also exposes consumers to the Atlanta Daily World brand.

Alexis Scott’s tips for family businesses

1. Participate in programs and gain knowledge at the Cox Family Enterprise Center. Study how family businesses are different from other businesses.
2. Apply business practices to your business. Don’t run your business like a club. Put governance systems in place.
3. There’s no substitute for DNA.  If it’s on you, you’re going to do it. You just have to heed the call.

Subscribe to the Atlanta Daily World:
Visit www.atlantadailyworld.com. Subscriptions are $52/year.

Contact Our Guest:
M. Alexis Scott
Publisher/CEO
Atlanta Daily World
3485 N. Desert Drive
Suite 2109
Atlanta, GA 30344
Phone: 404.761.1114 ext. 18
Email: publisher@atlantadailyworld.com
Website: www.atlantadailyworld.com

Family Business Radio greets 2012 with a look back into the 20th century. Guest Alexis Scott is publisher of the Atlanta Daily World, the nation’s first black-owned daily newspaper. She will join Family Business Radio co-hosts Meredith Moore and Dwayne Samples to discuss the history of the newspaper, its impact on the nation and the Scott family, and the satisfaction and challenges that come with any family-owned business. Ms. Scott will kick off the new year for Family Business Radio with her visit at 1 p.m. on Thursday, January 12, 2012.

As publisher of the Atlanta Daily World, Scott is responsible for overall editorial content and general management of the paper, which targets metro Atlanta’s African American community. Founded in 1928 by W.A. Scott, II, the newspaper became a daily in 1932. It now publishes weekly and can be accessed daily online. Before joining the family business in 1997, Ms. Scott enjoyed a 22-year career with the Atlanta Journal-Constitution and Cox Enterprises, Inc., where she worked her way up from reporter to vice president/community affairs at the Journal-Constitution and then director of diversity at Cox.

In addition to her work at Atlanta Daily World, Ms. Scott also is a regularly featured commentator on “The Georgia Gang,”  a  week-in-review program on politics broadcast on FOX 5 in Atlanta. She is also a member of the Board of Directors of the Atlanta Life Financial Group. She is active in several nonprofit organizations, serving on the boards of the High Museum of Art, the Historic South View Cemetery Preservation Foundation, the Atlanta Convention and Visitors Bureau, and Central Atlanta Progress.

About our Guest:

M. Alexis Scott
Publisher/CEO
Atlanta Daily World
3485 N. Desert Drive
Suite 2109
Atlanta, GA 30344
Phone: 404.761.1114 ext. 18
Email: publisher@atlantadailyworld.com
Website: www.atlantadailyworld.com

S. Truett Cathy and the beginnings of Chick-fil-A^®

James, who is grandson of Chick-fil-A^® founder S. Truett Cathy, relayed the story of how his grandfather and great uncle, Ben Cathy, started The Dwarf Grill near the Ford plant south of Atlanta in 1946. A typical 24-hour diner serving breakfast, lunch and dinner, the restaurant was open 24 hours a day. The brothers alternated 12-hour shifts. They closed on Sundays so they could rest.

Several years later, Ben Cathy died, and Truett Cathy continued running the restaurant. He often brought his three children in to help out–or even to dress as dwarfs and sing for customers. From the beginning, his goal was to provide customers a pleasurable and memorable experience.

The Cathy’s mother had run a boarding house, and Truett learned to cook from her. He experimented with a way to provide a chicken meal for Ford employees, one that could be prepared and consumed during their 30-minute break. Once he learned that chicken cooked much faster without the bone, he began to perfect his secret recipe, relying on his customers for reviews.

Initially, Truett was going to license the product for other restaurants to make and sell, but he found that the licensees didn’t prepare the chicken as well. He then decided to start his own chain, Chick-fil-A^®.  His sister owned a store at Greenbriar Mall in Atlanta. At first, the mall management didn’t want him to open a restaurant in the mall because they worried customers would leave trash around the facility and they were concerned about the smell of cooking food wafting through the mall.  He overcame their objections by convincing them customers would spend more time and money in the mall if they could also eat there.

Through the first restaurant at Greenbriar, Chick-fil-A^® became a pioneer for restaurants in shopping malls. The company’s early growth paralleled the growth of malls until the early 1980s, when the company experienced a decrease in year-over-year same store sales for the first time.

Defining a Corporate Purpose

Brent, who is married to Truett Cathy’s granddaughter, explained that this first dip in sales came when the country was experiencing an economic recession. At the same time, Chick-fil-A^® was building its corporate offices in Atlanta, and interest rates were high. Plus, other restaurants began introducing chicken sandwiches on their menus, creating the company’s first direct competition.

In order to re-focus, the executive team and family members went away for several days. At that meeting, they wrote their corporate purpose: To glorify God by being a faithful steward of all that’s entrusted to us and to have a positive influence on all who come in contact with Chick-fil-A^®.

Though this was the first time the words had been penned, the concept had been an integral part of the Chick-fil-A^® corporate philosophy from the beginning. From the children singing in the restaurant to treating everyone with honor, dignity and respect, the Chick-fil-A^® and Dwarf  House experience had always focused on the customer.

Employees over the years also benefited from the Cathys’ unique perspective. Because the restaurants close each Sunday, workers know they can always plan to take that day off. The practice of closing on Sundays started as a practical decision because the founding brothers needed rest. Continuing to do so even now illustrates Truett Cathy’s assertion that he sees no issues between Biblical principles and good business practice.

Branching out to freestanding locations, extended marketing

In the mid-1980s Chick-fil-A^® began building its first freestanding restaurants, instituting the drive-through model that is vital to today’s quick service restaurant industry. Brent and James praised the foresight of the family and key executives to make the move when malls and food court restaurants were still thriving. Now, their freestanding stores outnumber mall stores nearly four to one.

In 1995, Chick-fil-A^® introduced their award winning Eat Mor Chikin marketing campaign, featuring the famous Chick-fil-A^® cows. The Richards Group, a marketing firm out of Texas, continues to manage the 16-year campaign. Dan T. Cathy, James’ uncle and current president of the company, has said they will continue using the campaign as long as it is garnering results (or “until the cows come home”).

Chick-fil-A^® continues to reach out to new markets through sponsorship of college athletic events. The approach gives them a national presence and highlights their scholarship opportunities. The primary venue is their involvement in the college bowl games through sponsorship of the Chick-fil-A^® Bowl (formerly the Peach Bowl then the Chick-fil-A^® Peach Bowl) in Atlanta.

Giving back to the community

In the 1980s, Truett Cathy took a tour of Berry College in Rome, Ga., with the university president. She pointed out several abandoned buildings on the campus and asked Truett if he had any ideas for using them. Using those buildings, he started WinShape Foundation, an organization focused on “shaping winners” out of young people. It started as a summer camp and scholarship program and now includes seven different ministries and reaches more than 32 countries.

Generation 3 Plus enters the business

James says that 90 percent of family businesses don’t make it past the third generation, so the family is paying special attention to building unity and developing structures that set up expectations and leave no one behind.

Generation 2 for the Chick-fil-A^® family includes Truett Cathy’s three children and their spouses. Generation 3 includes 12 grandchildren and (so far) seven spouses. They call themselves Generation 3 Plus. Several Generation 3 Plus members operate Chick-fil-A restaurants or work for the company the WinShape Foundation.

Among the efforts to build family unity are annual vacations to Florida. All family members are invited, but no business talk is allowed. The week is an opportunity to build relationships and shared experiences. Truett Cathy also hosts monthly family waffle dinners at his home, giving him the opportunity to do something he enjoys–cooking waffles–and share family time.

In 2001, Generation 2 members attended the Harvard Family Business program and began setting up structures for the family. They meet as a group several times a year, and they bring the family together at different times to let members know what’s going on in the business, whether the family members plan to join the business or not.

One expectation they’ve developed is for family members to work at least two years outside Chick-fil-A^® before joining the business. This not only gives individuals an opportunity to explore the possibilities and determine whether or not they want to join the business, but also to learn things to bring into Chick-fil-A. For example, one Generation 3 Plus member spent two years working at a five-star resort. His experience has helped Chick-fil-A^® as it implements its second-mile service concept.

James spent three years working for another restaurant and  years as a manager for Lanier Parking Solutions. He says the experience of serving customers and greeting them each day gave him practical experience in customer service, in addition to the management experience he gained. He now works as a Financial Return Innovation Analyst for Chick-fil-A^®. He works with a team to find areas throughout the chain where the company can be good stewards through cost-reduction and value-added practices.

Brent joined the family when he married Angela, Truett’s granddaughter. Her mother, Trudy (Truett’s only daughter), was directing the summer program at WinShape in a year when Brent worked on summer staff. He and Angela met through the camp. Angela worked with a WinShape partner, Connect Ministries, for several years before becoming a full-time mom. Brent continues to work with WinShape as the Associate Director of Staff Development. As an outsider coming in to the family, he has observed that the family is committed to having time intentionally devoted to family activities and separate time intentionally devoted to business.

Learning best practices

Members of Generation 3 Plus are pursuing educational opportunities to learn more about managing a family business. James expects to graduate from Kennesaw State University’s Executive MBA for Families in Business program in May 2012. He, Brent, two other family members, and a key non-family member executive attended a week-long session at the Harvard Family Business Program in the fall. The Kennesaw program focuses on both typical MBA topics and family dynamics, while the Harvard program looks primarily at family involvement.

James says one of the things he took away from the Harvard Family Business Program is that family business issues are cross cultural. Chick-fil-A^® was one of only three U.S.-based businesses in the program, and they all were dealing with the same decisions and processes no matter the language they spoke. They spent much of their time learning from case studies from other family businesses.

Brent brought back the concept of a family business member’s role as illustrated in a three-circle Venn diagram. Each person in the family is either a family member, an owner or a manager in the business, but sometimes the circles overlap. It’s helpful to recognize which circle you are in or should be in when making a decision.

Partially as a result of their involvement (and Generations 2’s involvement) in these programs, Generation 3 Plus now holds monthly conference calls. They update each other on personal matters, and then discuss business matters as well.  They often linger after the call is over to exchange ideas with other family members.

They also hold Generation 3 Summits, in which they discuss business and bring in outsiders to speak and inform them. In February, they will play some roles in a seminar for owner/operators. They realize that people working for a family business like to see family members active and involved. It creates excitement and makes them feel more confident about the future of the company.

Members of Generation 3 Plus are not in decision making roles yet, so they are focusing more on learning about the business, figuring out how to work together, and studying family business in general. They also are working on determining how best to use the time and talents of their members in the family and in the business. They have appointed a five-member family council to organize their efforts.

All of the family members come together for cross generational meetings twice each year. One of these meetings even includes Generation 4. Together, all of the generations currently include 38 people.

Chick-fil-A^® moving forward

Chick-fil-A^® is currently in 39 states, and plans call for expansion into more of the U.S. Truett has always wanted to pass a debt-free company to his children, and Chick-fil-A^® is approaching that point, perhaps in the next year.

James’ and Brent’s Three Tips for Family Business

1. Build unity. James pointed out that the family will grow faster than the business, and families must set aside time to get to know each other without talking business. He says that his Grandfather (Truett Cathy) said he would rather sell the business and have the family stay together than have the business tear the family apart.
2. Get as much education as you can. Brent says to go beyond your formal education and find people in the company who have been around from the beginning, both family and non-family members, and get their perspective. Learn so that when you get to make the decisions, you’ll be prepared.
3. Understand where you are in the diagram and be sure you don’t overstep your bounds. James referred to the three-circle diagram that illustrates the overlapping roles of family member, owner and manager. Understand your role. Also look toward future roles and ask yourself what you should be doing to prepare now.

Contact Our Guests:

James D. Cathy, Financial Return Innovation Analyst
Chick-fil-A^®

Email: james.cathy@chick-fil-a.com

Brent M. Fielder, Associate Director of Staff Development
WinShape Camps

Email: bfielder@winshape.org

Our guest:

James Cathy

A grandson of Chick-fil-A^® founder S. Truett Cathy, James Cathy remembers going to the Dwarf House with his father, Don M. (Bubba) Cathy. He was squeezing lemons, working the drive-thru and running the cash register before he was tall enough to see over the counter. James earned a Bachelors of Science in Hotel, Restaurant and Tourism Management from the University of South Carolina. He worked for an outside company for several years before becoming office manager at the West Columbia (S.C.) Chick-fil-A^®, then moving back to Atlanta to join the corporate staff. Today, James is a Financial Return Innovation Analyst. He also is enrolled in the Cox Family Enterprise Center of the Coles College of Business at Kennesaw State University.

Our guest:

Brent Fielder

Brent Fielder is the Associate Director of Staff Development at WinShape Camps, where he oversees the recruitment, hiring and development of more than 425 college students each year. Started by S. Truett Cathy in 1985, the WinShape Foundation’s goal is to “shape winners” out of young people. From its beginnings as a summer camp and college scholarship program, the Foundation has grown into seven different ministries operating in 32 countries and impacting thousands of lives each year. Brent began working with the WinShape Foundation in 2003 as part of the summer staff at WinShape Camp for Boys in Mount Berry, Ga. He is married to Angela White Fielder, granddaughter of S. Truett Cathy. Previously working with the WinShape Camps for Communities day-camps, Angela has recently become a full-time mom to 8-month-old son Michael.

Contact Our Guests:

James D. Cathy, Financial Return Innovation Analyst
Chick-fil-A^®
Email: james.cathy@chick-fil-a.com

Brent M. Fielder, Associate Director of Staff Development
WinShape Camps
Email: bfielder@winshape.org