Sunset Family Business Radio

Recap:How Deli Provision Co., Inc. Preserved a Fourth-Generation Brand

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The show on Thursday, April 15th offered a penetrating discussion on the topic of expanding a business while retaining the brand and culture.  Our guest, Stan Epperson, founder of Deli Provision Co., Inc., joined Family Business Radio and hosts Meredith Moore and Pat Romboletti to tell us about his business, its growth and to share his experience with preserving a brand.

Stan started his business in1981—launching Deli Provision as the first independent distributor in Atlanta for Boar’s Head Provisions, a fourth generation family-owned business founded in New York City in 1905.  Stan credits his success over the last 29 year by aligning with Boar’s Head’s creed: Sell only superior quality delicatessen products—no compromise.

The ability to expand without jeopardizing the values that are at the heart of a family business is tricky terrain. Stan credited Boar’s Head with maintaining its original stance—that the independent distributors are customers. Customers get treated differently than channels of distribution, a huge distinction to Stan’s mind. He also pointed out that, in making your company valuable for any future sale, “profit follows. It does not lead. Success follows. It does not lead. There are no tricks, no magic formulas. A business becomes more valuable as you do the same thing for the last customer as you did for the first customer. Which is also more difficult.”

Stan shared a great story that really brought home the fact that Boar’s Head was committed to maintaining the values of the founder.  Since the beginning, when all delivery trucks were based in New York, Boar’s Head has insisted on gold-leaf lettering on delivery trucks—even after they expanded nationally with their independent distributor network.  The process could only be done in New York City and required Stan to ship his trucks to NYC and arrange for delivery back to Atlanta.  An expensive and time consuming process.

During a visit to Atlanta by Bob Martin, CEO and the grandson of the Boar’s Head founder, Stan complained to him about how crazy, expensive and inefficient it was to go to all that trouble for the delivery trucks—“…surely we could get some decals that would be almost as good.” Mr. Martin paused a second and then replied, “When you let me make roast beef that’s almost as good, then I’ll let you paint trucks that are almost as good.” Stan said (with a laugh and, I swear, you can see him shaking his head even on the radio), “That brought the conversation to a screeching halt.”

Philanthropy is another passion of Stan’s family. After losing their son to a brain tumor in 2001, the Epperson family has poured their energy and money into funding various groups who are searching for a cure. “We don’t want another family to have to go through this,” he said. They also set up The Epperson Family Foundation as a multi-generational tool to help in this area.  Stan was clear about philanthropy—in the beginning of a business, your focus needs to be on making that business a success. But once you’ve crossed a subtle line, then he firmly believes that you need to give back to your community.

He admitted that setting up a foundation was a bit daunting, but “we got professionals to help us.”  In his own words, he avoided the problem that afflicts so many entrepreneurs—the “I can do anything” syndrome. Instead, he turned to a team of trusted advisors, including his CPA, lawyer and financial planners, to develop a coordinated approach.

By the way, for all you entrepreneurs out there who are just beginning to get your business off the ground—take heart. 29 years ago when he first started, Stan literally lived in the back room of his warehouse while his family stayed in New York. For shower facilities, he used the 24-hours gym down the street. But piece by piece, account by account, day by day, he built his company. As of this May, he is selling the last piece of his business—the 16th! His next venture? “I’m becoming very good at being a goof-off.” (A statement that is only partially true since he plans to channel his considerable energy into the family foundation.)

You can download our podcast and get the entire discussion with Stan. His blend of humor, candor and humility will inspire you. While he is clear that doing the simple things, like sticking to the core values of your family and business, is hard, he is equally clear that they are worth it.

Stan Epperson, Deli Provision Co. Inc., 6925 Discovery Blvd. Mableton, GA Telephone 770-948-9494

Boar’s Head Provisions is a fourth generation family-owned business that began in New York City in 1905.  The founder, Frank Brunckhorst, had a very simple philosophy back then—-sell only superior quality delicatessen products—no compromise.  While competitors, faced with the challenges of rapidly expanding distribution, have compromised on their standards over time, Boar’s Head never has.

Key to the family strategy of careful expansion that holds to the roots of Frank Brunckhorst’s vision is their use of independent distributor’s such our guest on Thursday, April 15, Stan Epperson, Founder of Deli Provision Co. Inc. Stan launched his business in 1981 and, working closely with Frank’s descendants, has continued to uphold the high Boar’s Head standards as he has grown his business in the Atlanta region over the past 29 years.

Stan will share the rich history of Boar’s Head and the history of his own successful business, Deli Provision Co. Inc. There is much to learn about how to expand without jeopardizing the values that are at the heart of a family-business.

But Stan’s story doesn’t stop there.  After pouring himself into building Deli Provision Co, Inc, he has followed another passion that will be carried on by the next generation of Stan’s family—philanthropy.   Just as in building a business, creating a legacy through philanthropy can be fraught with pitfalls, so we have asked Stan to share the wisdom that he has gained along the way.

Rich history, successful expansion, uncompromising values and leaving a legacy are all covered in our show with Stan and you won’t want to miss a bit of it.

Our guest:

Stan Epperson graduated from Butler University in 1971 with a degree in Business Administration.  He then started his work career with Oscar Mayer and Co. in sales in Indianapolis, IN.  Over the next 10 years he held different sales management positions in Seattle, LA and Syracuse NY.  In 1981 he left Oscar Mayer and Co. and started Deli Provision Co. in Atlanta GA, which is the distributor for Boar’s Head Brand Products in the Atlanta metro area.

He is on the board of directors of several charities including the Brain Tumor Advisory Board at Duke University, the Southeastern Brain Tumor Foundation, GOAL Scholarship Board and the Community Foundation of North Georgia.  He is also the trustee of the Epperson Family Foundation.  Stan’s personal interests include golf, snow and water skiing, hiking, biking and squash.

Stan Epperson, Deli Provision Co. Inc., 6925 Discovery Blvd. Mableton, GA Telephone 770-948-9494

Sunset Family Business Radio

Recap: How One Family Business Beat the Odds and Made it to the Fourth Generation

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How do you keep a family-business going and growing into the 4th generation? On Thursday, April 8th, Family Business Radio hosts Meredith Moore and Pat Romboletti welcomed Ross Kogon, President of Pull-A-Part, LLC who shared some of the secrets. A self-service used auto parts and recycling business with 23 do-it-yourself auto parts superstores across the east coast, this 102-year-old family-owned business, begun by Ross’s great-grandfather who picked up scrap with a horse-drawn cart, is in its fourth generation.  An accomplishment achieved by only about 3% of all family businesses.

We invite you to listen to the entire conversation on our podcast and get Ross’ take on succession issues, on-boarding new family member-employees, intergenerational communications, leveraging technology, and growing a vibrant company culture. You will come away with invigorating ideas that are sure to make your family-owned business grow and thrive. And who knows? Maybe even for the next 102 years.

Here are some of the highlights:

We began our discussion by Ross explaining how a family member comes into their family business. He explained that it is a series of steps beginning with the written policy that says each family member-candidate must have a college degree and outside business experience at a professional level for a minimum of five years. Once those requirements are met, then the person must be interviewed by key family members and non-family members who work at the business. “It’s structured enough so that it’s clear the family member wants to be there and they have skills to grow the company. It’s not just a place where family members can be safe,” he said.

He was also quick to point out that this process helps show non-family employees that you belong and you’re not just there because of your last name. “It’s not so much that you, as a family member, are held to a higher standard—it’s that you have a slimmer margin of error in not meeting the standards,” he explained. By the way, non-family members have to go through a similar hiring process, which sends a powerful message to them that they are part of the same team.

Pull-A-Part has opted to use outside advisors, but not outside directors. Outside advisors are sought for their opinions and expertise, which are expressed in regular meetings. Ross values them for their ability to keep the business on track and growing smartly and makes sure they uphold the families predetermined standards and policies. However, the family did not think outside board members served their purpose, despite what the textbooks say, and decided against those relationships.

As for the inevitable conflicts and their resolution, Ross discussed the two mechanisms that Pull-A-Part has in place. First, before undertaking a new project or direction, they sit down and play-forward as many disagreements as they can think of long before there is any emotion attached to it. Then they argue the various merits beforehand and hammer out agreements. When something comes up later, this process gives them the ability to say—“No, wait. We talked about this already and we said…” Ross likened it to putting “a speed bump in front of the anger accelerator.” The other vehicle they use is on the back-end, after a conflict surfaces, when you have the option to write up and present your issues to the board and outside advisors. It’s the “nuclear option” and therefore used sparingly. Ross believes that the process of writing down your position allows you to crystallize your thoughts and evaluate whether there might be other means of resolution that would work better.

When asked about balancing business with family gatherings, Ross was emphatic about habits. He quoted Aristotle who said that excellence is not an act—it’s a habit. In their family, over the years they have practiced the habit of not talking business at family gatherings (a rule helped along by each successive grandmother!). That way, children are tended to, rituals are observed, communications are enriched—and the family stays intact.  And by the way, they have a strict family-tradition—the family gathers every Friday evening for Shabbat dinner.

The other important habit for keeping family and business in the proper perspective comes from the family ethos of philanthropy and giving back to their communities. “They are very important to us. We talk about these two things as much as much as we talk business,” he said. Therefore, they are in the habit of talking to each other about something other than business.

Ross ended the discussion by offering three valuable tips for family-owned businesses:

• Have your disagreements in advance by envisioning various scenarios and possibilities. And have your agreements in advance too. Commit them to paper because “it’s not an agreement, if it’s not in writing.”

• Do not force your children into the business. You really only want family members who want to be there.

• Make the family about more than just the business. If the family only becomes about the business, then you leave too much value on the table.

Ross Kogon, President, Pull-A-Part, LLC, Telephone:  404-607-7000

Sunset Family Business Radio

Recap: Risk Management, Real Estate and Your Family Wealth

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Family Business Radio, hosted by Pat Romboletti and Meredith Moore, had a fascinating discussion on April 1st with Dan Merkel, of Southern States Insurance, Inc., and Josh Hirsh, Managing Director of Studley, about two essential subjects for a family-owned businesses: risk management and property leasing.

Josh shared his take on the economic realities found in today’s commercial real estate, in general and specifically for Atlanta. He pointed out that now is a very good time to be a tenant due to high vacancy rates. As a family-owned business, you should be evaluating your real estate costs—and consider renegotiating any leases. While it isn’t a free-for-all market we’re currently in, you can secure upfront concessions with long-term, flexible leases. He further pointed out that warehouse space isn’t quite as dramatically down as office space (apparently the warehouse developers weren’t as exuberant as the office space developers) and that a lease-to-buy strategy could be a viable option.

From a risk management perspective, Dan discussed the impact of the current economy on insurance. In terms of workers comp, building, equipment and other liabilities, few businesses have the same footprint as they did in, say, 2004 or 2005. With that downsizing, your insurance cost should have notched down, too. Renewal interviews with your trusted advisor would allow you the opportunity to address those changes.

Dan went on to liken reviewing your insurance to doing your taxes: boring, but required. His best advice is to take inventory of your insurance needs once a year, just like you do with your taxes. The risk of doing otherwise is too great. For instance, the two most likely negative events for a business in Atlanta is either a large fire or a tornado. You have to ask yourself—if something like that happens, do I have the coverage to rebuild?  This is exceptionally critical for a family-owned business since virtually all of your wealth is tied up in your business and your real estate.  Simply put, adequate insurance levels protect your family business so that you have a business to pass on to the next generation.

Josh articulated the role of a real estate professional working on your behalf. Real estate brokers can be so much more than the guy who finds space for you. A tenant representative can create a competitive environment that will work in your favor as the tenant-business owner. They can help you understand the different business models of landlords and work with the one most favorable to your cause. They can help you understand the nuances of the lease and can structure it in your best interest.

Insurance and real estate professionals can be important members of the trusted advisor team for family businesses. Josh’s view carries the weight of common sense, “I can move the ball along to a point, but I want to stop where my expertise stops.” From there, he relies on other professionals who can expertly address insurance, tax, and law matters. Dan concurred—“Create a stable of resources,” he said.

Be sure to listen to the full interview available as a download. These two experts will get you excited about the possibilities out there to capitalize on today’s financial climate while reducing risk.

Dan Merkel, Sr. Account Executive, Southern States Insurance, Inc. – Telephone – 678-715-0415- Email: dmerkel@southernstatesinsurance.com

Josh Hirsh, Managing Director, Studley – Telephone – 404-504-0015 – Email: jhirsh@studley.com

When you own a family-business, virtually every financial decision that you make can have a long-term impact on both your business and your family.   On Thursday, April 1st, our guests, Dan Merkel, Founder, Southern State Insurance, Inc. and Josh Hirsh, Managing Director, Studley will share their insights on two key areas that are sometimes over looked—risk management and property leasing.

Without proper risk management—your entire business and all of the wealth that your family has built can disappear with one uninsured loss.  Dan Merkel will help you understand how to develop a comprehensive risk-management strategy that must be part of your overall business and succession planning.

Managing your real estate holdings and negotiating lease terms can be complex.  As a family-business owner you must also consider the impact a long-term commercial lease can have on your successors.  Josh Hirsh will help us navigate the commercial real-estate waters from a family-business perspective and will help us understand the opportunties available during these volatile times.

Our Guests:

Josh Hirsh, Managing Director, Studley

Josh joined Studley in June of 2000. He began his career in commercial real estate as a financial analyst focusing on acquisition and disposition strategies. His expertise includes evaluating the cash, GAAP, and book impact of a variety of real estate lease structures. As a broker, Josh works with both corporate clients and law firms on ensuring that his clients achieve both optimal financial results as well as flexibility to help manage a variety of human resource issues.

Josh is an active member of the American Israel Chamber of Commerce where he advises early-stage Israeli technology companies on various strategies for entering the market. He is an active member of the Northside Youth Organization where he has both coached baseball for the past several years and contributes as an active member on the park’s long-term planning committee. He is also working with Kate’s Club, a local non-profit, on a variety of fundraising and public awareness initiatives.

In 2009, Josh was recognized by the Atlanta Business Chronicle in its annual “40 under 40” list for his contributions and leadership in his company and community.  Josh graduated from Indiana University with a degree in real estate finance and Japanese.       Josh Hirsch, Studley – Telephone – 404-5043-0015

Dan Merkel  CIC, Sr. Account Executive, Southern States Insurance

Dan’s client base consists of but is not limited to manufacturing, distribution, wholesale, construction, real estate, professional, not for profit public and private companies.  His specialties include liability, property, workers compensation, vehicles, equipment, umbrella, professional liability, cargo.

Dan is married and the father of two girls.  He lives in Alpharetta where his is a very active member of his community.  He serves on the board of directors of several organizations and recently graduated from the Alpharetta Public Safety Academy.

After more than 18 years in the property and casualty insurance businesses working with business owners and helping them manage their insurance cost and exposure. Dan has worked with almost every type of business you can imagine. He has an advanced degree from the Society of Certified Insurance Counselors (CIC) which has given him great insight and expanded knowledge of insurance. Dan Merkel, CIC, Southern States Insurance – Telephone – 678-715-0415

Sunset Family Business Radio

Recap: A Coach and a CFO Discuss the Keys to Succeeding in a Family-Business

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Meredith Moore and Pat Romboletti, co- hosts of Family Business Radio, spent an insightful and informative hour on Thursday, March 25th with guests Dean Harbry, with  Internal Innovations and a Professional Certified Coach credentialed through the International Coach Federation with, and Fritz Schlabach, CPA and (non-family) CFO of a family-owned business.

Fritz has been a non-family key executive for more than 20 years in family-owned businesses.  He explained that he grew up Amish and essentially was raised in a close knit family-environment on the family farm.  Listen to the Podcast for more details about his journey from his Amish family to the Marines, a Big 4 accounting firm and then his long career inside family owned-businesses.

Dean kicked off the conversation by explaining that an executive coach serves a specific function very different from a consultant. A coach partners with his client through a process of focusing on what’s inside that person—rather than coming in and telling the client what is wrong and how to fix it.  Similar to the way a professional athlete benefits from a coach, an executive coach “gets you farther faster,” he said.

One way he develops “executive presence” is by cultivating professional management skills. Using the illustration of what an executive does when something goes wrong, he pointed out that a professional manager, as opposed to the amateur manager, will forego finding a culprit in favor of finding solutions to the problem. This shift in attitude creates a safe environment in which employees feel like they can take risks and, just as important, will declare faster that a particular strategy isn’t working.

This point led to Fritz talking about his 20—year career preference for the family-owned business structure, which is an environment that requires him to have a wide bandwidth. He prefers the lack of bureaucracy where decisions can be made and unmade quickly. Additionally, he likes to wear many hats—“no two days are alike.” However, he also acknowledged that in a small company, you may do the mundane.  Light bulbs need to be changed. Toilets need to be cleaned. You have to humble yourself, set aside your issues and feel responsible, he urged.

Both guests gave compelling reasons for an executive to hire an executive coach. From Dean’s viewpoint, he sees that all human organizations—really, anywhere there are two or more people together—are relationship-driven. The resulting dynamics, whether in a family, a family-owned business or the largest corporation, creates tension. A coach will help an executive through that minefield. As for Fritz, he was clear that an executive coach doesn’t come with a magic wand. However, just as he, as an outsider, can provide clarity to the owner-family, a coach can supply him with much needed third-party objectivity.

One case in point: the situation within a family-owned business when the founder is considering bringing in a top-level, non-family executive. Fritz encouraged the founder/owner to get expert advice that will help them see what they are missing, something that requires them to accept that they may not have all the answers. Dean agreed by highlighting that, before taking such a step, the owner needs to do an in-depth evaluation of where the company stands. An honest and forward-thinking evaluation often arrives at the conclusion that they need to bring in someone with a different skill set and personality from the owner.

Please listen to (and download) the full discussion on our Podcast.  It is delightful mix of hard-earned wisdom and fresh perspective, guaranteed to be time well spent.

Dean Harbry, PCC, Executive Coach, Internal Innovations – Telephone: 770-783-2765

Fritz Schlabach, CPA

Many family-owned business executive teams include senior-level professionals who are not family members.  Assimilating into the business and achieving success can be challenging both for the family-business and for the executive.

Our show on Thursday, March 25th will feature two guests who can shed a great deal of light on this topic. We will be welcoming Dean Harby, PCC Executive Advisor & Coach with Internal Innovations, along with Fritz Schlabach, CPA and currently the CFO of a family-owned business.  Dean and Fritz have worked together as coach and client,  and Fritz is a seasoned veteran of the family-owned business having served for 20 years in executive roles as a non-family member.

This hour-long  broadcast will explore the role an executive coach can play in guiding non-family members to success within a family business from Dean’s perspective.  Fritz will share his insights and real-life stories of the benefits of taking on a leadership role in a family-business—along with many insights on the challenges and how to navigate the waters.

You won’t want to miss this lively discussion.  And as always, we promise it will be full of useful information and tips, so be sure to have your notebook handy!

Our Guests:  Dean Harbry, PCC and Fritz Slabach, CPA

Dean Harbry is credentialed as a Professional Certified Coach (PCC) through the International Coach Federation and is best know for his executive coaching competentcies.  Dean brings a long history of visionary leadership and managerial leadership to his coaching practice.  He has worked with individuals from banking, finance, technology, manufacturing, media and sales.  As a trusted advisor, he partners with executives to achieve results.

His own career included significant experience with mergers and acquisitions, including a multi-bank acquisition.  His IT skills were honed when he created national IT infrastructures from scratch in financial services environment.  He has served as President and COO and has consulted with State government, educational institutions, financial professional firms, law firms, the auto industry, medical research, nonprofit institutions, boards of directors and leadership training.

Dean’s personal mission is to create clarity in next steps, promoting forward movement.  Dean holds a BA in Organizational Management and is completing his MA/PhD in “Professional Coaching and Human Development” at International University of Professional Studies.  When not helping his clients create forward momentum, Dean can be found on the running trail training for his next marathon–he has completed 20 to date.

Internal Innovations – Telephone 770-783-2765

Fritz has over twenty years of experience as a senior executive in privately-held companies.  Currently holding a CFO role in a family-owned business, he began his professional career with Arthur Andersen in their auditing and small business development segment.  Upon leaving Andersen in 1990, he gained his CFO and senior executive expertise, including the position of COO for a $20 million direct marketing firm, in various industries ranging from manufacturing to management consulting.

He has extensive experience in all aspects of strategic planning, budgeting, process improvement, and management information systems, including specializing in turnaround situations.  Strong interpersonal and leadership skills have enabled Fritz to quickly gain trust and influence with owners/stakeholders as a key executive management team member in these often less structured and fluid environments.

Growing up Amish and serving in the US Marines are two significant forces in Fritz’s background which acted to forge a strong work ethic, a passion for building cohesive teams, and a commitment to excellence.  After leaving the Marines, Fritz graduated with highest honors from Washington and Lee University, having started college with an 8^th grade education and a GED since the Amish are exempt from compulsory education beyond the 8^th grade.

Sunset Family Business Radio

Recap: How Multi-Generations in a Family Business Can Be a Competitive Edge

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On on March 11th broadcast, hosts Pat Romboletti and Meredith Moore of Family Business Radio were pleased to welcome the family business owners at Rick Bailey & Company—founder and father Rick Bailey along with his oldest daughter Amanda Bailey Hohenbery.  Based in Woodstock, GA, their insurance agency specializes in individual and group health insurance.

The show opened with Rick and Amanda discussing their early days.  Rick began his insurance agency as a sole proprietor, never really foreseeing that even one of his three daughters would join him in the business—much less all three of them. Amanda admitted to some surprise herself. Upon graduating from college with a psychology degree, she was considering her options when her dad offered her an interim position at the insurance agency—“just until you decide what you want to do.” Daughters Delane and Jennifer also pursued different educational degrees before joining the company.

From the beginning, it was clear that the Bailey family values got translated into business values that then became the bedrock of their successful family-owned business. Rick said that, first and foremost, he always told the girls to “follow your dreams and do what you enjoy doing.”  It just happened to turn out that the daughters loved the business just like their dad!

A big part of the success for this family-business has been their recognition and leveraging of the strengths of multi-generations in a family-business. Each daughter—representing two different generations (Gen X and Y)—brings something unique to the table—Amanda is more marketing driven, Delane likes the finances and Jennifer, the Gen Y representative, is all about technology. Instead of downplaying these attributes, they have leveraged them. “The only way to fail is to not recognize the strength of each player,” said Amanda.  By combining their strengths, they have been able to provide exceptional customer service that is the hallmark of their company.  Their clients now know that the same great service and the values that they were attracted to in the first place while working with Rick all these years will continue on with his daughters—each in their own unique way.

The conversation took a fascinating turn when Rick and Amanda were asked about their various“aha” moments along the way. Rick delved into the process he undertook before deciding to make the three daughters partners in the business. Amanda shared the poignant journey in which she moved from “Dad, what would you like me to do today?” to the stage where she knew what she was doing to now being at the point where she is thinking of new things to do to ensure the long-term viability of the company.

As for integrating the next generation into the business, Rick advised other first-generation business owners to not try to force a round peg into a square hole—to let things happen naturally. If the children love what they’re doing, he said, then the business will work. Amanda chimed in from her perspective with advice for members of the second-generation: take the attitude of “what can I bring to the company?” and “how can I improve the business?” There are no handouts, she said—we have to work.

Rick and Amanda also added to the Family Business Radio tip library with the following:

Tip 1 from Amanda:  Both generations must equally contribute to the business for a long period of time.  The first generation should not abandon the business for the golf course when the children join.  And the children need to show up fully when they join the business and always be looking for ways to contribute.

Tip 2 from Rick:  The relationship between the owner and the children must grow, change and mature.  It must mature to a relationship of equals. He shared one of is favorite quotes: “It is a great moment when the teacher becomes the student and the student becomes the teacher.”  Rick added that they have had many of those moments.

Tip 3 from Amanda:  Be sure to use the strengths of each generation.  Look at what each person can contribute to the business—each one has different “super power” and can use that unique ability to contribute to the business.