Business — it runs in the family.
And thank goodness. Family businesses account for some of the most powerful economic engines in the world (you’ve heard of Wal-Mart, yes?) and not to mention our very own Utah County (here’s looking at you, Clyde Companies).
But the clearly powerful business model doesn’t always create a clear black and white entity. With the potential for blurred boundaries and family feuds (sans surveys), there’s a whole lotta gray going on.
Even still, talk to any family business, and the pros pummel the cons. So if you’re thinking of starting a family company — or if your current family business needs a reminder or a reboot — here are 26 areas to discuss at the dining (or conference room) table.
May we present … the ABCs of running a family business.

ASSUME = THE WORST
So you’re family. So you’ve known each other since you were tots. So you’re closer than two business partners could possibly be.

Even so — assume nothing.

“It’s one of the biggest pitfalls family businesses can fall into,” says Fritz Black, who runs Cowboy Leaders in Birdseye with his two nephews. “They’re family, so it’s easy to assume you know what they’re thinking. And then you jump to conclusions based not on fact but on what you think. It’s not a good place to be.”

IT’S ALL A BLUR
Jessica Devenish lives, works and breathes family.

“Oh, the lines are totally blurry,” says the founder of Provo-based Checknet, who works with her parents, her husband and two of her sisters. “But we are learning to set boundaries in a clear way so we’re not always working.”

In actuality, blurry is A-OK — it would be unrealistic NOT to have crossover. But that other, more difficult B (boundaries) needs to be equally present.

“Feel free to go home and talk about issues related to the business. That’s not the problem,” says Gibb Dyer, a professor at the BYU Marriott School and a consultant to families in business. “The problem comes when there are frustrations at work and you let those frustrations affect the quality of your family relationships.”

COMPENSATION CONTEMPLATION
Bluefin Office Group is no family business amateur. The Orem-based company has been in the Benson family since the ’60s, and the kids practically grew up in the store.

These days, the kids are grown —and running Bluefin with their father, Dean, and mother, Pat. And when it comes to tackling sensitive issues like compensation, they know the challenge — and are up to the task.

“Compensation is a tricky, complicated area,” says Dale Benson, Dean’s son and CEO of Bluefin. “It’s obvious you need to look at performance and contribution, but there are added layers in a family business. Should salary also be based on how many children someone has? Should it be based on who’s been there the longest?

Getting everyone on the same page is difficult. So to keep things fair, we’ve left that to my dad — he handles compensation relative to family members.”

The lesson? When it comes to a sensitive matter like compensation, pick a person or policy everyone agrees upon and is comfortable with.

THE RIGHT DIRECTION
Family knows best — but a little outside perspective can give you some much needed direction.

“One of the most important pieces of advice I can offer is to have a board of directors that includes non-family members,” Dyer says. “It’s the best way to get unbiased advice, critique and support.”

ENTITLEMENT SCHMITLEMENT
At a young age, Devenish learned an unforgetable lesson from her father: Earn respect — don’t demand it.

And so when it comes to Checknet, entitlement is never an issue.

“It doesn’t matter if you’re family or not — you start from the bottom and work your way up,” Devenish says. “All of us have earned our respective positions on our own merit. And having that kind of attitude goes a long way.”

Neal Dastrup couldn’t agree more.

“Family members will become stronger if they have to start from scratch,” says Dastrup, who owns Dastrup Insurance and currently works with five of his seven children. “Handing your kids a job on a silver platter will send your business down the tubes before you know it. But if they have to build it, they will respect it.”

FORMALLY SPEAKING
In a family buisness, it’s revenue one minute and Thanksgiving dinner the next. But while those two worlds can exist (see: B, It’s All a Blur), be wary of keeping the company too casual.

“There are certainly situations where family businesses have lost all formality and are neglecting to discuss the important issues at hand,” Dyer says. “Have official discussions, take minutes, vote on issues that are important. Your business needs some semblance of formality.”

GO FOR GOALS
A family business can’t succeed without family goals. So sit down together and come up with a shared vision — and a plan to get you there.

“To have a shared vision that is bound by our family bond is a fun thing,” says Chris Dexter, who founded the Orem-based law firm Dexter & Dexter with his brother, Bryan.

HOME FREE
Every once in a while, when you’re home and feeling extra daring, talk about something other than the business. Potential topics may include — but are not limited to — the weather, music, movies, sports, politics and Betty White (she’s very in right now).

IN YOUR BEST INTEREST
You know that good old fashioned self interest? It’s time for a new perspective.

“The first law of economics is everyone acts in their own self interest,” says Dale Gunther, chairman of the board of Bank of American Fork, a family business. “But we need to rise above that and say, ‘I’m doing this for the good of the whole. It’s not for me. It’s for the good of the customers, for the good of the employees and for the good of the shareholders.’ Manage with that philosophy, and you’ll be more successful and have more joy in your business life than you can imagine.”

Dr. Brian Trapnell, who founded his Utah Valley orthodontic practice with his three brothers, is on the same page.

“Our No. 1 priority is the client and our employees,” he says. “If those needs are met, everything else will fall into place.”

DO YOURSELF JUSTICE

Equality is a tricky topic in a family business. On the one hand, family members should get some preference. It is a family business, after all.

But on the other hand, you don’t want your non-family member employees to feel like outsiders looking in.

“The truth is, family businesses can never really be completely fair,” Dyer says. “All things being equal, family members should have preferential treatment because they are members of the family. The problem comes when a family member is incompetent and promoted above others. Don’t hire incompetent family members.” (Someone should really needlepoint that on a pillow.)

To make it a win-win, strive to create a family environment for everyone at your business. Since you’re a family company, it should come pretty naturally.

“This is a tough one, because with so many of us at the company, I can see how non-family members could feel like everyone is their boss,” says JaNae Harrison, who works at the Orem-based McGee’s Stamp & Trophy with her father, Jesse McGee, and her six brothers and sisters. “But we have consciously tried to make everyone feel like family. That’s been our motto from day one.”

KID AROUND
When Neal Dastrup built his insurance business more than 30 years ago, he kept it all in the family.

“When my kids were little, their job was to clean the office,” he says. “They would come in on the weekend to vacuum, dust, clean the restrooms — you name it. And when they were in high school, they’d work here in the summer.”

Eventually, those odd jobs turned into full-fledged careers.

“They grew up having a relationship with the agency, and now every one of my children but one is either in the business or planning to be,” Dastrup says. “It’s the best feeling in the world.”

In short? Involve your kids in the business from a young age. That familiarity will serve you (and them) well.

FOR THE LOVE
In the midst of business plans and spreadsheets, don’t forget the all-powerful motivator: love.

“I love my family,” Bluefin’s Dale Benson says. “It’s wonderful to rub shoulders with them every day. It’s the best benefit I can imagine.”

“There’s nothing better than being able to work with people you love,” Fritz Black, of Cowboy Leaders, says. “I’m fortunate they are my family, and I’m even more fortunate they are my associates.”

“I honestly love working with family,” Checknet’s Jessica Devenish says. “It’s a great pleasure of my life, and I wouldn’t have it any other way.”

MAD SKILLS
Oh, conflict. It’s inevitable in every business.

But family businesses have the added bonus of history. Oh, history.
“Drama can tear a company apart,” Devenish says. “So we really work at that. Learning to agree to disagree has been our biggest key to success.”

And when conflict does arise, know when to talk it out and when to seek help.

“If it’s a complex conflict — conflict rooted in history like, ‘My brother sat on my face as a kid,’ get some counseling,” Dyer says. “A family therapist can help you work through those issues.”

But if it’s simply a difference of opinion? Make like Devenish and her family and get rid of the drama.

“With simple conflicts, face the issue head on as a family and solve it,” Dyer says.

A HOUSEHOLD NAME
Chris Dexter drives around town with a personalized license plate — and he’s a different driver because of it.

“Realizing that people know who I am and know my last name reminds me to behave myself,” Dexter says. “Knowing our business has our name on it makes us acutely aware of how we do business. It’s a great reminder that we should always act with integrity.”

Trapnell Orthodontics also knows the power of the family name.

“Anytime a family owns something, there is more personal attention,” Dr. Brian Trapnell says. “Our name is on every smile that walks out our door, so there’s an added incentive to make sure it turns out great.”

CALL TO ORDER
Rather than shoot from the hip, set up a structure to measure performance and keep family members accountable.

“One of the most common pitfalls is failing to setup a clear mechanism to monitor performance — to reward family members when they do well and to discipline them when they don’t,” Dyer says. “This is one area you can’t play by ear.”

PINK SLIP
In our Spring 2006 cover story, Hal Wing, of Springville-based Wing Enterprises, was clear on the family business plan: “Work or get fired. And I’ve had to fire some family members.”

Obviously, no one wants to be the fired family member (or the one doing the firing, for that matter). But just knowing it’s in the realm of possibility might strike motivation into the hearts of family members everywhere.

QUARTERLY CHECKUP
Once a quarter, sit down for a reality check. Revisit your goals, evaluate your progress and talk through any unresolved conflict (although after this article, we obviously expect said conflict to decrease exponentially).

ROLE OF A LIFETIME
One of the first — and most vital — steps in creating a family business is defining the roles of each family member. Be clear about who does what and what is expected of each person. Try and cater to each family member’s strengths (your business will appreciate it), and get specific, people!

Because when everyone is working to their potential in a family business, no one can touch you.

“What I love is everyone brings different talents and skills to the table,” Devenish says. “We all have different strengths and weaknesses, so the division of duties has been really natural. It’s been, ‘You love legislative? You get it. You love financial? You get it. You love operations? You get it. You love marketing? You get it.’ It’s been a natural road map for our company’s success.”

SUCCESS-ION
In 1966, Jesse McGee was working at the post office when he had the opportunity to buy a stamp machine.

And buy it he did.

Forty-four years later, he’s running McGee’s Stamp and Trophy with his seven children and two grandchildren.

The next question, then, is who’s next?

“One of the biggest challenges is how do you pass it on to the next generation,” JaNae Harrison says. “There’s seven of us McGee kids, and each of us have worked for the business at different times and in different capacities. Things can get tricky, so it’s extremely important to have a plan in place.”

Harrison couldn’t be more right.

“Having a succession plan is the No. 1 piece of advice I can give, ” Dyer says. “And you need to have two plans — a short-term contingency plan in case the head of the family passes away unexpectedly, and a long-term plan where the head of the family identifies a successor to the business and a timetable in which they will retire.”

This is a non-negotiable, folks.

THE FAMILY TRUST
When you’re working with family, it doesn’t get better than trust.

“What I love about being in a family business is I trust them completely,” Fritz Black says. “We all know what our life goals are and there are no hidden agendas. In our family business, everything is on the table.”

A UNITED FRONT
In the immortal words of Sister Sledge: You are family — get up everybody and sing.

VENT-ILATION
Remember when you blew up at your brother in his office and then went home to your wife and vented about it? And then remember when your wife didn’t talk to said brother for weeks?

Remember when it’s all in the family, it’s all in the family.

THE WRITE WAY
In your efforts to up the formal factor (in a cool and casual way, of course), put your essential and sensitive agreements in writing. Handshakes can certainly be trusted, but it never hurts to give that hand a pen.

“It simply makes things more clear, which is always a good thing,” Dyer says.

Dale Gunther is a firm believer in the “write way” of doing things, and he practices what he preaches at Bank of American Fork.

“It’s a necessary thing to do,” he says. “After you’ve defined your policies and procedures, get them in writing and familiarize employees with them.”

XTREME COMMUNICATION
(Editor’s Note: Yes, we just spelled extreme with an X. You try coming up with an “X” word that’s not Xerox or xylophone.)
Ahem. Now that that’s settled, let’s talk talk. Because bottled up feelings? You’re not welcome here.

“Communication is the key. And I’m talking quality communication,” says Bluefin’s Dale Benson. “I wouldn’t give us an A on this yet, but we’re working on it all the time. It’s that important.”

“Communicate, communicate, communicate,” Checknet’s Devenish says. “And if you still don’t get it, communicate a little bit more.”

YEARS GONE BY
Whether your family business is five generations old or whether you started it in your living room last week, appreciate your company’s history and document all you can. Your kids and grandkids will be better for it.

FOR ZEAL
“There’s nothing better than working with family,” Dastrup Insurance’s Neal Dastrup says. “I’m a happy man.”

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