Business Monday

Three-generation family businesses share their secrets of success

 

Family businesses are everywhere in South Florida. But the ones that make it to the third generation have commonalities: the ability to stay relevant, think bigger and take a long-term view. Here is a look at some of those businesses.

Facts about family business

•  Family businesses comprise 90 percent of all business enterprises in North America, and 62% of total U.S. employment.

•  Only 30% of family businesses in America will be passing the reins to the next generation, even though close to 70% would like to keep their business in the family.

•  By the third generation, only 12% of family businesses in the U.S. are typically still viable. By the fourth generation and beyond, only 3% of family businesses continue to exist.

•  The environment for innovation in family businesses improves when more generations of the owning family are actively involved in the business.

•  The oldest family owned business operating in the United States is the Zildjian Cymbal Co. of Norwood, MA founded in 1623 in Constantinople and moved with the family to the United States in 1929.

•  Return on investment is greater in family businesses, averaging a 6.65% greater return than non-family firms.

•  The average life span of a family-owned business is 24 years.

•  More family owned businesses are finding leadership from outside the family. Between 10% and 15% of U.S. family firms are now managed by non-family executives.

•  Emergency planning is vital. In nearly half (47.7 %) of all family-owned business collapses, the failure of the business was precipitated by the founder’s death, or in 29.8% of the cases, the owner’s unexpected death. Only in relatively few instances (16.4 %), did the business failure follow an orderly transition, and in situations where the owner was forced to retire, the figure drops to 6.1%.

SOURCES: Small Business Administration, Peakfamilybusiness.com, Family Business Review, Family Business Magazine, ffi.org, familybusinesscenter.com, Barclays Wealth and The Economist Intelligence Unit, University of Connecticut Family Business Program


cindykgoodman@gmail.com

Las Vegas restaurants

There’s no doubt that respect exists in the Vilariño family, a family-owned restaurant chain. Founder Antonio Vilariño, 75, bought Las Vegas Cuban Cuisine restaurants in 1984 when he couldn’t persuade the owner to sell him the adjacent grocery store. Having fled Cuba, Antonio was determined to make his Hollywood restaurant a hot spot for Cuban cuisine and immediately made it a family affair with his wife and five daughters, waiting tables and greeting customers.

As the girls grew, so did the business, with dad taking on the role of team manager, putting the right players in the right positions and letting them show their talent. Today, Antonio, his wife and four of the daughters divide the tasks of supervising 17 stores, ordering supplies, paying vendors and marketing to customers. “We’re in constant contact with each other,” explains daughter Miriam Vilariño, who manages the catering operations and the restaurants in Western Dade and Broward counties. “We decide together what takes priority.”

Today, the Vilariño daughters have their own daughters who they are training in the family business. Already, the girls, ages 17 through 2, spend time at the restaurants after school, making coffee, taking orders or greeting customers. Miriam, who has 17-year old twin daughters, says the entire family tries to mold them: “We want to instill our family values, which are entrepreneurship and perseverance.”

One of the biggest challenges of a family business can be the issue of entitlement. The two older generations of the Vilariños nip that attitude in the bud: “The granddaughters still do the same thing as bus boys. They have to work hard, chip in and they must set examples just like we do,” Miriam says. “Employees love them because they are part of the team. They are taught that things are not given, they are earned.”

Still in high school, Natalie Vilariño Borowski shadows her grandfather whenever possible, watching how he uses the skills that have made the business successful. “He shows me how to treat people when they come in and how to give them good customer service.” From watching her mother, she has learned dedication, something she knows a textbook would never be able to teach: “My mom and her sisters are always at the restaurants. I wake up and she’s there. On the weekends she’s there. But I also learn that dedication and that hard work pays off. “

Already, Natalie and her sister, Valerie, are contributing, appealing to a reluctant grandfather to embrace social media. They’ve created a Facebook page, reworked the marketing and advertising materials, and convinced grandpa to allow them to respond to online reviews.

With multiple family members involved, disagreement is inevitable. When an issue arises, Antonio calls a meeting at his home and serves as the diplomat, calmly making a determination that the others agree to follow. “We disagree every day like any family,” Miriam says. “However there is a passion for what we do, respect for my dad and the family name. At end of day, we may disagree on a business level, but we are united as a family.”

Antonio says he is proud of his accomplishments, but he is still not satisfied. He wants to take Las Vegas restaurants national, to the biggest cities in the United States.”I talk a lot with my granddaughters about what I envision for the business and for them,” he says.

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