Monday, January 28, 2008

What Makes a Family Business Successful?

Family owned businesses are the backbone of our economy. The University of Southern Maine's Institute for Family-Owned Business reports that 35% of fortune 500 companies are family-controlled. It has also been reported that family businesses are responsible for 50% of U.S. gross domestic product, 60% of the country's employment and 78% of all new job creation. Unfortunately, less than 1/3 of all family owned businesses make it to the second generation, and 1/10 makes it to the third. So what does it take to succeed and be part of the 10% who survive? Lauretano Sign Group has just celebrated 60 years in business and Michael Lauretano Jr. is being groomed to take the business into its third generation.
Recently, I had the pleasure of speaking with the Principals of Lauretano Sign Group (Mike Lauretano Sr. Owner, Pat Byrne President & C.E.O, and Michael Lauretano Jr. Sales Manager) to find out the secret of their 60 years of success. Their story is one of heartbreak, perseverance and direction.
First Generation
Lauretano Signs was begun by Mickey Lauretano in 1947 as a protest to the cost of show cards (50 cents). Mickey (an artist) started to paint them for himself and found it to be a profitable way to earn a living. In 1966 Mickey died leaving his wife Amelia and 5 children. Amelia decides to keep the business alive and continue her husband's vision.
Second Generation
In 1972 her son Michael turned down a job offer (Science Teacher) and joined his mother to build Lauretano Sign Group to what it is today. Michael brought his enthusiasm and the work ethic his father gave him. Michael and Amelia learned to distinguish family and business, sometimes the business conversation continued to the dinner table, but Amelia also knew how to lead and allowed Michael to learn from his mistakes. Michael in turn has chosen to introduce his son Michael Jr. to the business in the same fashion.
Successes & Challenges
In 35 years Michael took a struggling sign company to a leader in the signage identification field. Michael accomplished this through his determination, focus, and vision for his company. He refused to let anything get in the way of the success of the company. Michael knew that big ideas come with big price tags. Balancing growth with cash flow was one of the greatest obstacles he had to overcome. In order to take the business to the next level meant purchasing the equipment and machinery. Michael found a way, and adopted the motto "act like you are going to be around for a while." "Most people think of great or grand ideas but are unwilling to take the risk to execute them. Execute."
His greatest success has been to adopt the Henry Ford approach surround himself with a team of people who know about the things he doesn't. He doesn't have to be the smartest person in the room; he just has to make sure the job is getting done in the most efficient manner.
Third Generation
Michael Jr has been a part of Lauretano Sign Group his entire life. He has paid his dues and worked in every department of the company. He understands what it is like to work for the company and answer to the department heads and managers. His current role is to lead the sales force. Pat Byrne states "Michael has brought new energy to the company, specifically in the sales and networking area. His ideas and his personality have been fully accepted within the company."
Staying Alive
Lauretano Sign Group has decided to be part of the 10% who survive. They will do this through good communication, knowing when to let go, and their willingness to execute their vision.

Tuesday, January 15, 2008

Michael Keiser Managing Member American Mobile Scan

Michael joined the Army after High School to pursue a career as a helicopter pilot. During his training he got injured and couldn't continue. He then pursued a career as an X-Ray Technician. Disillusioned when the job became mundane, he sought out something that offered him satisfaction.

In 1997 Michael and 2 doctors began American Mobile Scan. A mobile imaging company that provided Bone Density Testing to post and perimenopausal women.

Why Michael Started American Mobile Scan

Michael developed a desire to be in business for himself, and thought the concept had the potential to become a profitable business. He had a background in medical imaging, and wanted to create something that hadn't existed before.

Did the business give you joy?

"I knew that the success or failure of the buisness was dependent on my efforts, and the team I created. The everyday challenges had their ups and downs, but there was a lot of fulfillment in the relationships that were created with clients and colleagues. The money was a great reward as well."

Business Education

Michael started this venture without any formal business training. He learnt from his failures, business books, and other entrepreneurs.

Being in Business day to day

There were many aspects of the business that Michael enjoyed, but there were also things about the business that he didn't. Due to Michael's extroverted personality he was natually successful at sales and marketing. However, the business owner soon finds out that once you hang out your shingle you suddenly become a man/woman of many talents, (whether you posses them or not). The administrative details were the aspect of the business he disliked.

Success & Failure

Michael's greatest success with American Mobile Scan was taking the company from $0.00 to $1.5 million. Unfortunately, his greatest failure was the choice of his 2 business partners who became more of a hindrance, than a help. This resulted in stunting the growth of the business, which led to it's dissolution.

Advice to other Business Owners

"Gut it out everyday, don't think it's going to be easy. Be willing to fight the fight even when you don't want to. Partners are for dancing, but if you choose to take on business partners, make sure you choose carefully, and have a comprehensive operating agreement."

Turning A Concept that gives you joy into a Business

An Entrepreneur is someone with the courage and passion to take a concept that gives them joy into a business, and is willing to do whatever it takes to achieve their desired outcomes.

A Concept that Gives you joy

In my case this wasn't why I became an entrepreneur. My husband and I owned a medical imaging company. If you remember from one of my past entries How I Became an Entrepreneur I mention my passions were to become wife/mother/and teacher. I didn't get involved in the business because I cared about the business, I did it because my rose colored glasses had just gotten a shot of windex sprayed on them, and I wasn't going to be caught with my pants down if something happened to Michael.

Director of Operations



Director of operations was my title. Yes, I loved the business, but I loved it for the wrong reasons.

  1. The business made my husband happy

  2. It provided our family with more income than we had ever made

  3. I could buy more things, go more places

  4. I felt a freedom I hadn't ever experienced in the past

My husband Michael on the other hand was living the dream. He had taken a concept that gave him joy and turned it into a profitable business.