35%
Percentage of Fortune 500 companies that are “family firms” (controlled and/or managed by a family).

$400 Billion
The largest family business is …
Wal-Mart, with almost $400 billion in sales and 2.1 million employees worldwide.

Family businesses in the United States account for 78% of all new job creation, 60% of the nation’s employment and 50% of the gross domestic product. (Yeah, it does.)

ON THE HOME FRONT
A smattering of local
family businesses

Alpine Gas Fireplace
Bank of American Fork
Bee Safe Systems
Bennett Communications (that would be us)
Bluefin Office Group
Checknet
Clyde Companies
Corporate Alliance
Cowboy Leaders
Dastrup Insurance
Dexter & Dexter
Dippidee
Forrest Motors
Garden Path
Geneva Pipe
JCW’s
Johnson Tire
Lehi Roller Mills
McGee’s Stamp & Trophy
Nu Skin
Ream’s
Shirley J
Sound Concepts
Wing Enterprises
Zions Bank

AT HOME AND ABROAD
Famous family businesses around the world

American Eagle Outfitters
BMW
Dillard’s
Enterprise Rent-A-Car
Estee Lauder Cos.
Fidelity Investments
Ford Motor Co.
Gap
Hallmark Cards
Hasbro
Huntsman Corp.
Hyundai Motor
Ikea
Levi Strauss
LL Bean
L’Oreal
Marriott International
Mary Kay
McGraw-Hill
Motorola
New York Times
Nordstrom
News Corp.
Samsung
S.C Johnson & Co.
Tyson Foods
Viacom
Wal-Mart
Washington Post
Winn-Dixie

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They’re upset … but they don’t do anything about it. They seem to believe the situation will somehow fix itself. What they don’t realize is if you do what you’ve always done, you’ll get what you’ve always got. Insanity is repeating the same poor actions over and over — and expecting a different outcome.

There is a much better way to invest, but it requires you to take action and be proactive. It all starts with selecting a quality financial adviser. Interview a prospective financial adviser just like you would a prospective employee. While hiring the wrong employee can cause unnecessary grief, hiring the wrong financial adviser can wreak havoc with your entire future.

Often, because people don’t know how to evaluate an adviser, they simply invest with the first person that impresses them. This is a mistake. The best salespeople are not necessarily the best advisers.
We provide educational resources on our Web site, www.paragonwealth.com, that outline seven steps to selecting a financial adviser. Three of them are non-negotiable. First, the adviser must be a fiduciary. Second, he or she should have 10 years of investment experience. And third, the adviser needs to show you a 10-year investment track record.

These may seem like stiff requirements, but they will significantly increase your odds of success.

Why is it important to find a fiduciary adviser? Fiduciary advisers have a legal obligation to put your interests ahead of their own. They are held to a much higher standard. Most people do not realize that all financial advisers are not fiduciaries. Surprisingly, it’s been estimated that only about 15 percent of advisers are fiduciaries. Generally speaking, most sales reps who receive a commission for selling financial products such as annuities, insurance and mutual funds are not fiduciaries. On the other hand, Registered Investment Advisers and their reps usually are fiduciaries.

Why should they have 10 years of experience? Because markets are difficult to navigate and are constantly changing. Ideally, your adviser should have experience investing in both good and bad markets. Experience is critical.

Why should you require them to show you their 10-year track record? If they don’t, then how do you know what they’ve done for prior clients? Talk is cheap. Legitimate advisers can show what they’ve done for clients over the years. Showing you the track record of a mutual fund, a hypothetical model, or anything else they have recently started selling does not count. They need to show you their own track record, which would be a composite of the results of their previous clients’ investments. Any adviser who refuses to show you their track record should be crossed off your list.

Make sure your adviser meets these three requirements. If you are not happy with your investment performance or your current adviser, do something about it. Poor investments will not fix themselves. To improve your situation, you must be proactive.

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Jeanette Bennett, Editor of BusinessQ: What is unique about the legal environment in Utah County?

Bill Fillmore, Fillmore Spencer: If you compare the Utah County bar to bars in other parts of the country, we’re a fairly collegial group. We extend courtesies to other counsel. There’s a common denominator of expected good behavior.

Chris Dexter, Dexter & Dexter: I’m thrilled to practice law in such a wonderful valley. We have great people. We have a competitive growth dynamic. There are 600 attorneys, which is one per 1,000 people. We’re courteous and civil practitioners, which I really appreciate. Some of my best friends are my competitors. People can have a negative view of attorneys, but we buck that trend.

Michael Krieger, Kirton & McConkie: Most of Utah Valley’s companies are homegrown. You can’t pacify clients by saying, “There is a corporate culture in force, and I don’t really want to do this, but I have to.” Here we have a lot of multi-level marketing companies still run by their founders, and you don’t have corporate ill-will that sometimes you get with clients from New York and other places.

Patrick Burt, Kipp & Christian: Although Utah has a rapidly growing economic base, it still has a small legal community. I started my career in Phoenix, and you would never run into the same judge or attorney twice. Here you have to be conscientious about being professional because you are going to run into the same people later. You have to build up the camaraderie, because it’s going to help in future litigation matters.

Bennett, Editor of BusinessQ: What are some of the top legal concerns you are dealing with in our community right now?

Fillmore, Fillmore Spencer: Clearly, the recession has had an impact on the legal profession. We’re seeing more debtor/creditor issues, like foreclosures. We’re trying to find ways to help our corporate clients stay afloat.

Dexter, Dexter & Dexter: There’s a lot more attention paid to appropriate capitalization of entities. Several years ago people just needed a good idea and things would work. Now people are focusing on the fundamentals that have always been important. You have to be well capitalized. You have to have a firm business plan that will take you through ups and downs.

Burt, Kipp & Christian: Cost is a big thing. Everybody is feeling a pinch. You have to consider how to comply with the laws so you avoid litigation. Or if you are in litigation, you need to get your best result without breaking the bank.

Krieger, Kirton & McConkie: We see a lot more settlements now rather than going to trial, and the cases settle much more quickly than they have in the past. Alternative compensation is a bigger deal now. We do a lot of flat fee work that we didn’t do before. I’m in the intellectual property field. It’s a difficult decision to cut back on an IP portfolio, but we’re seeing a lot of careful paring back.

Bennett, Editor of BusinessQ: What can business owners do to find a good attorney and then maintain a good relationship?

Fillmore, Fillmore Spencer: All too often we find that a new startup business seeks out counsel in their Elder’s Quorum and ends up with a divorce lawyer doing corporate work. Shopping around is good. Asking the right questions helps. Once a relationship is established, honesty and good communication make it work.

Burt, Kipp & Christian: You should communicate with your attorney early and often. We specialize in civil litigation. People show up to us when the wheels have already fallen off. From there we find a good solution with the situation they have handed us. You’d be surprised how many situations could have been avoided. If you talk to an attorney early and often, they can steer you away from problem spots.

Fillmore, Fillmore Spencer: Nothing beats preventative medicine, no matter the profession.

Caleb Frischknecht, Ray Quinney & Nebeker: Communicate with your attorney and insist on reciprocal communications. Be clear at the outset what the fee arrangement is and the scope of work.

Krieger, Kirton & McConkie: As some companies grow, their biggest problem is getting rid of their president. The same thing is true for counsel; you can’t be afraid to grow your counsel as your company matures. I like loyalty. It’s an important part of a relationship, but sometimes either the attorney has to say “You’ve outgrown me,” or the company has to recognize that. It’s part of having an honest relationship with your client.

Dexter, Dexter & Dexter: The nature of law has changed. There used to be general practitioners, but now there is individual focus within a framework of a general practice. Quite frankly, being able to say no to a client and refer them out is difficult. I had a conversation with a fellow yesterday, and I told him that Bill Fillmore was perfect for this case. It wasn’t Chris Dexter. You need to know your limits to be good, and know the area to which you dedicate yourself.

Burt, Kipp & Christian: On the other side, business owners also need to know their limits. My mentor always told me you need to let the client know we are the surgeons. You have to trust us when you hand us your case. Obviously we want your input, obviously we want you in the know. But ultimately we are the surgeons, so trust us.

Bennett, Editor of BusinessQ: How has technology changed your industry?

Krieger, Kirton & McConkie: My first 25 minutes of everyday are spent going to five professional Web sites that offer opportunities to chat with other IP attorneys. I’m able to have a dialogue with 50 people from different states to establish best practices and raise the level of my personal practice. By doing that every day, I’m right up on top of the changes that happen in my profession.

Fillmore, Fillmore Spencer: Everything is faster. In most ways, it’s a good thing, but it is harder to walk away from your office and turn your phone off. We’re also going paperless at an accelerated rate.

Frischknecht, Ray Quinney & Nebeker: Technology has sped things up. Everyone, including the courts, expect accelerated responses. We must be careful in addressing these demands not to lose the art of contemplative and serious analysis of what to those with minimal exposure to the process sometimes mistakenly view as simple and straightforward; it heightens our responsibility to communicate clearly with our clients.

Dexter, Dexter & Dexter: Law books have become antiques. When I started practicing 15 years ago, law books were important. Then we received an updated CD each quarter. Now legal research is on the Internet. You can find things immediately. That’s good and bad. Sometimes the consumer thinks they have the knowledge and expertise to answer all of their questions just by Googling. That’s not the case. Lawyers should be used as advisers as entrepreneurs go through the life cycle of their businesses.

Fillmore, Fillmore Spencer: There’s such a temptation for legal consumers to go online and find a form and fill in the blanks and think that’s adequate. That’s so deceptive. There is so much more complexity that goes into forming a business. They need legal guidance. Filling in blanks leads to trouble.

Burt, Kipp & Christian: Bill mentioned speed. I think e-mail is a pro and con for business owners and lawyers. It makes communication much faster, but it’s much easier to send off something you shouldn’t. One of the first things we do when we get a case is gather e-mail correspondence. As business owners and executives, you have to be careful what you say in an e-mail because it can be brought into a legal case.

Fillmore, Fillmore Spencer: There’s a false sense of security with office e-mails. They become the treasure trove. People need to be very careful of the defamation risks involved in shooting off e-mails in the heat of the moment as Patrick indicates.

Krieger, Kirton & McConkie: Take that one step further with Facebook. We’re seeing a lot of social media problems arise because people think what they are saying is confidential, but it’s not. People post things they wouldn’t say in a professional environment.

Bennett, Editor of BusinessQ: What myths about your profession would you like to dispel?

Fillmore, Fillmore Spencer: By and large, in this county and in the state of Utah, the phrase “honest lawyer” is not an oxymoron. Most of our professional colleagues are very ethical.

Dexter, Dexter & Dexter: Most of the lawyers who get past all of the barriers to entry are there because they want to help people. We want to solve problems. I don’t know any other profession that gives more pro bono back to the community. Bill, for example, sits on many boards and gives of his time. Attorneys don’t have horns. We like people, we like to help businesses and we like to help families succeed. That’s what motivates me.

Burt, Kipp & Christian: When I first started practicing, people would say I was too nice to be a lawyer. The perception is that we are fighting tooth and nail — and billing you the entire time we’re doing it. My experience is you get a lot further in law and you get better results for your clients if you treat people kindly and if you give respect and have integrity. We want our clients to refer other clients. We want a good reputation in the community.

Krieger, Kirton & McConkie: There are lots of ways to get rewarded in our field. Money was an important motivator early on. As I’ve gotten older, money is less important and I strive for other things. An attorney who is striving for appreciation and relationships is going to do things for free, and all you have to do is invite him out to lunch and be open and honest with him. As the population ages, you have a lot of older attorneys who aren’t driven by money, but are driven by relationships.

Bennett, Editor of BusinessQ: What are some of the common ways businesses are charged for legal services?

Krieger, Kirton & McConkie: Everything I do is fixed fee, except for some contract negotiations. Clients know up front what they will pay. They know it’s going to cost them $650. If it’s $659, they will call me. People like fixed fee. I like it, too. Perhaps 30 percent of what an attorney does is fight with accounting and fight with a client over bills. It’s a complete waste of time.

Dexter, Dexter & Dexter: The fixed fee model is wonderful. I don’t know if I could afford to sign up for a blank check of $250 an hour with the risk of it ending up being $3,000 or $4,000 or much more. That is beyond the comfort level of a small- or medium-sized business. With fixed fee, clients can call the attorney without fearing, “Gee, I’m going to get this ticky-tacky bill for copies or a phone call.”

Burt, Kipp & Christian: Since most of our work is civil litigation, each case is unique and a flat fee usually won’t work. We go with the tried-and-true hourly rate, but we always make sure to provide a budget. Our firm is also good about sending monthly status letters to clients.

Bennett, Editor of BusinessQ: What are common legal needs that family businesses need to address?

Fillmore, Fillmore Spencer: One of the key things is a succession plan. What happens when Dad dies? Failure to answer that question legally can sometimes lead to frustration and bitterness in families. You are well advised to take care of that in advance.

Dexter, Dexter & Dexter: The theme this morning seems to be communication. Attorneys can facilitate that communication within a family. Sometimes it’s difficult for family members to have those conversations without a disinterested third party.

Burt, Kipp & Christian: Chris mentioned this earlier. You should have an attorney on board when you start the business. Sometimes family businesses aren’t ready for growth. Sometimes their paperwork or structure is not set up for that. They need ongoing legal counsel. Avoid the handshake oral agreements that often go along with family businesses. You need documentation and paper trails.

Frischknecht, Ray Quinney & Nebeker: Family businesses are very interesting. They involve succession issues, how to capitalize for growth, when and if to involve venture capital, how to pass on interests through estate planning, and a variety of other issues for a business that is dear to the heart of those who created it.

Burt, Kipp & Christian: If there is an attorney on board in a family business, it’s good to know who the attorney represents. Sometimes the attorney thinks he’s representing the company’s best interests, but family members have other ideas. The family needs to know the attorney’s role ahead of time.

Bennett, Editor of BusinessQ: How have changes in real estate affected you?

Fillmore, Fillmore Spencer: We’re doing a lot of negotiations with banks. Real estate developers have been turned upside down. The appraised value of their properties is now less than their loans. This creates all kinds of problems for the lender and borrower — and a lot of legal work to be done in that regard. Frankly, some of the best men and women in this valley are under water and struggling to find a way out of the recession. There are things that can be done, strategies for negotiating with borrowers. There is a considerable increase in these types of cases.

Dexter, Dexter & Dexter: We practice bankruptcy law. There was a decrease of cases after October 2005, but now it has come back with a vengeance. Unfortunately, some get themselves into situations that are unwise from the start; but most who face bankruptcy are well intended. Nobody wants to file bankruptcy. They would like to negotiate their way out and honor their commitments, but the economy manifests itself in terrible ways.

Fillmore, Fillmore Spencer: The big problem in this valley and this state is the credit crunch. We’ve seen a lot of our clients who have done everything to weather the storm. They’ve cut expenses, they’ve laid off non-essential employees. They’ve cut back on frills and office parties. They’ve restructured their insurance plan, and the storm is still raging. They are up against the wall thinking the credit markets will ease up, but despite all the talk out of Washington, it hasn’t. Credit is still tough. Even those who are willing to lend are facing far heavier regulatory schemes. It’s a problem that isn’t going away quickly. I’m worried about small businesses who are stretched as far as they can go. The light isn’t there yet for a lot of them, and they don’t have much more capacity to protect their businesses. We’ve got to ease up the credit market.

Dexter, Dexter & Dexter: The national focus should be on small- and medium- sized business, which are truly the backbone of our local economy. If they can’t access capital, they can’t make payroll when things are tight. They can’t expand. They can’t do a lot of the things that would bless the lives of their employees.

Fillmore, Fillmore Spencer: I bet Michael sees these trends in his IP practice.

Krieger, Kirton & McConkie: We’re doing more provisional pats. The real estate side, interestingly enough, has benefited tech companies because there’s cheap space out there right now. Tech companies have weathered the storm better than most. Most of my clients are hiring. They have a little more money to spend on IT because they are spending less on rent.

Bennett, Editor of BusinessQ: Let’s look forward. I know you have a front seat to the trends in the local economy. What do you foresee happening in our community in the next 10 years?

Fillmore, Fillmore Spencer: The economy is going to rebound. We have a remarkable entrepreneurial engine in this county that is not on its deathbed. It’s been suppressed by a lack of credit, but we’ll see a rebound. The Utah economy has done better than most states.

Burt, Kipp & Christian: Utah didn’t get hit as hard as other regions because of our entrepreneurial spirit, our fighter mentality. I wouldn’t be surprised to see Utah rebound fairly quickly.

Fillmore, Fillmore Spencer: The state and local government leaders have done a great job keeping us in the black and staying on top of revenue decreases. We’re well positioned for the future.

Dexter, Dexter & Dexter: One thing Utahns understand — and the national politicians need to understand — is that capitalism is still good. Self-interest rightly understood is a good thing. As we move forward with ideas and develop in a competitive way, we can make great things happen. That is why America has led the world this last century. We are the good guys economically and socially. As long as we are responsible and respectful in the way we do business and the way we live our lives, we can still be a great force.

Krieger, Kirton & McConkie: My prediction is that in the IP world, we’re going to see a lot more globalization. If not in the next 10 years, soon after we’ll see a world patent. We’ll also see movement toward multidisciplinary practices where attorneys work in offices with accountants and engineers where a client can come in and get all those benefits from one visit.

Bennett, Editor of BusinessQ: What is the job market like for those coming out of law school now?

Dexter, Dexter & Dexter: With two law schools in the state, we are churning out 300 new lawyers per year. Both schools prepare their graduates for big firm practice and constitutional law practice, and the reality is that many end up in small- to medium-sized firms, so it’s incredibly competitive. I’ve received 30 inquiries lately from people saying “Please, please can I work for free to get experience?”

Krieger, Kirton & McConkie: A lot of the 2009 graduates are starting now because they were deferred by law firms last year. Not only are firms not hiring people this year, but they are filling the few jobs they do have with people from last year.

Fillmore, Fillmore Spencer: We read about big law firms laying off substantial numbers of young lawyers. That’s tough. A lot of young lawyers would be wise to see law school as a stepping stone to another profession.

Dexter, Dexter & Dexter: It’s a great time to be in law school, though. It’ll come around.

Bennett, Editor of BusinessQ: What final message would you like to leave with our readers in regards to the legal industry?

Burt, Kipp & Christian: For business owners, it’s crucially important to find the right attorney and be in touch often. Keep them in the loop as business grows.

Fillmore, Fillmore Spencer: Most lawyers want to be perceived as a client’s friend and not a necessary evil. We want to be there for them.

Burt, Kipp & Christian: We take pride in our clients’ successes. It’s a joint venture.

Dexter, Dexter & Dexter: As attorneys, we can make a positive impact not only on the local community but on solving some of the issues people are dealing with. We are here to help.

Bennett, Editor of BusinessQ: Thank you for your time today. I learned a lot, and I know our readers will, too.

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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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When life hands you lemons, make them blue. Coming off its one-year anniversary, Blue Lemon Restaurant and Bistro is blowing out candles and breathing in some well deserved success. Opening a restaurant is always risky. But opening one in a less-than-ideal economy? A risk worth writing about. The company’s delicious triumph is a tribute to its owners and to its niche. Lychelle and Aaron Day picked a concept — a family friendly take on the clean food movement — and committed to it. But taking the plunge was never a question to Lychelle, who hails from quite the entrepreneurial family (Orem-based Xactware and Costa Vida, to name a few). In fact, when naysayers took their shots — as naysayers do — Lychelle and Aaron proceeded with dashes of gumption and naiveté (for good measure). True blue entrepreneurs, indeed.

My husband and I were on a food kick. We enjoyed the raw food diet for about a month, but it wasn’t realistic for young kids. We went vegan, thinking it would be easier, but we ended up traveling towns just to get the food we wanted. So my sister suggested I open a restaurant.

I thought, “Oh no.” But then I thought more, and I warmed up to it. I knew we could do a family oriented restaurant that was healthy. We had something here.

The initial concept was super healthy — vegan, specifically. But then my husband said we’re not going to have men come into the restaurant if it’s vegan. So I looked into other moderation diets and found the clean food philosophy, which has no high fructose corn syrup and no hormones in the meat. That’s when we stopped being vegan. We had to test our own food, right?

We teach what we preach. We have a demo kitchen where we teach cooking classes. We also have a space for luncheons and banquets, as well as a bistro, where we sell merchandise, coffee and hot chocolate. The bistro is still finding its niche. Surprisingly, coffee has not been the biggest hit in Highland.

The restaurant business isn’t always a kind one, and there were some initial fears. We had a number of financial advisers warning us not to do this. But we felt strongly about it. We were trying to create jobs for people in a down economy. It felt like the right thing to do.

Looking back, we were a bit foolish. We were brazen. At the time, people were shocked, saying, “I can’t believe you’re taking this on!” And we were like, “Really? Why?” We just had so much faith in the concept there was never a question. But knowing now how much we’ve had to go through — and knowing 50 percent of restaurants fail in the first year — I can see their point. Lucky for us, being naive worked to our advantage.

The restaurant’s name doesn’t really have a back story. It was going to be Essence Café, but it didn’t feel right. We started looking at other restaurants — Applebee’s, Chili’s, Costa Vida — they were all fun names that didn’t mean anything. So we started playing around with something light and fresh, and my husband came up with Blue Lemon. I wish we had a cool back story, or that the name represented some visionary tree out of Africa. But it’s just fun. Let me know if you have a back story for us.

The most difficult time was getting open. It was an uphill battle with finding the appropriate staff and the right chef and menu. There was a whole laundry list of items, and we tried opening three or four different times before we finally did. We ended up finding our wonderful chef at UVU. He came on and redesigned our menu. He was heaven-sent.

The high point has been customer feedback. Last spring I was in a dressing room in Nordstrom, and the associate asked me what I did for a living. I told her we opened a restaurant called Blue Lemon, and the lady in the stall next to me squealed, “I love Blue Lemon! We go there all the time.” We have such loyal customers. The restaurant has been uniting for the community.

My family has a history of entrepreneurship, and that certainly has helped. We don’t really know much different. We’ve always just taken chances and gone out there and done it. We don’t feel more confident we’ll succeed, but we feel more confident trying.

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What It Is A provider of search engine optimization.
Why It’s Watch-Worthy What started as a $5,000 bootstrap has turned into a million-dollar company, thanks to rock star leadership from serial entrepreneurs with a passion for business and bootstrapping.
The Big Break “Warner Music was our first big account. We spent a month listening to Michael Buble, Madonna, P. Diddy and Ashley Tisdale.”
The High Point “Our first hires were four really smart high school students. These young men have performed tasks that most college graduates could not perform. It has been fun to help these students develop skills that will help them to go out and change the world.”
The Low Point “We made a few poor hires. It is always tough to have to terminate people.”
The Advice “Read ‘Bootstrap Business’ (a shameless plug for our book). A second would be to fail efficiently. There are going to be failures. Do it as rapidly as you can because that will bring the successes quicker.”
In 2015 “Sold! I will have created at least three more multimillion dollar companies by then.”
Editor’s Note: Shortly before press time, BusinessQ was notified that CastleWave has officially been sold to Crexendo (www.crexendo.com). That makes Rich Christiansen’s 2015 prediction a fact and BusinessQ’s watch-worthy recognition that much sweeter. Congrats, CastleWave!

NO. 2 COMPLETE MERCHANT
SOLUTIONS
Founded 2008 City Orem Employees 26 Industry Electronic payments Web site www.cmsonline.com Founders David Decker, 35; Kyle Hall, 27; Trever Hansen, 32

What It Is A provider of merchant services.
Why It’s Watch-Worthy With staggering revenues in its short lifetime (the company grossed $2.5 million in its first year of business), Complete Merchant Solutions has used strong management and expert execution to become an instrumental force in its industry.
The Big Break “When we were officially accepted as a registered bankcard processor for Visa and MasterCard.”
The High Point “When an industry legend accepted our offer to assume the reigns as CEO.”
The Low Point “The second we realized we were scammed by a professional Russian Mafia group out of California for $110,000.”
The Advice “Test as many different industries as you can early in your career. Once you’ve identified the industry you want to set your stakes in, focus on the soft spots (i.e. under-served areas). Tailor your go-to-market strategy to fully capitalize on those soft spots and start chipping away at market share.”
In 2015 “We’ll be a nationally recognized brand within our industry, acknowledged as a ‘Top 50 Bankcard Processor’ in America (based on transactional volume), and listed in the top 10 of BusinessQ’s ‘Top Revenue’ list.” (Editor’s Note: We’ll see you in 2015.)

NO. 3 BLUE LEMON
Founded 2009 City Highland  Employees 26 Industry Dining  Web site www.bluelemonutah.com Founders Lychelle Day, 29; Aaron Day, 29
What It Is A restaurant and bistro that specializes in the “clean food” movement.
Why It’s Watch-Worthy Opening a successful restaurant at any given time is worth a celebration. But opening a successful restaurant in a recession? Now that’s parade-worthy.
The Big Break “Just getting open. It was a battle.”
The High Point “The customer feedback. We have such loyal customers.”
The Advice “Have a good idea, a good foundation and a strong conviction. And then just go for it.”
In 2015 “We’ll have multiple locations.”

NO. 4 FAMILYLINK
Founded 2007 City Provo Industry Technology Web site www.familylink.com  Founder Paul Allen
What It Is A provider of a family social experience platform.
Why It’s Watch-Worthy FamilyLink has found monumental success with more than 60 million users, 500 million family connections, 20 million monthly active users, 1.2 billion indexed names and 200,000 poll responses daily. Plus, its flagship application, “We’re Related,” is the top family application on Facebook.

NO. 5 FRANCHISE FOUNDRY
Founded 2008 City Orem Employees 12 Industry Franchise development Web site www.franchisefoundry.com Founders Christian Faulconer, 38; Corey Spencer, 35; Ryan Frandsen, 34

What It Is A growth capital/consulting services firm that invests in and helps emerging brands grow through franchising.
Why It’s Watch-Worthy In just a short window of time, Franchise Foundry has redefined what it means to be a franchise consultant by actually investing capital in its clients — and it’s paying off. Under its direction, Spoon Me grew from two franchises and three corporate stores to 13 franchises, three corporate stores and a 25-store master franchise agreement with Western Canada; and Fairway Divorce grew from six to 17 franchises in Canada and zero to six franchises in the United States.
The Big Break “When we added Fairway Divorce to our portfolio, it was a big deal for us. They took a risk on a company that hadn’t proved itself yet, and we’ll always appreciate them for that.”
The High Point “Capping off a successful 2009 during a tough economy.”
The Low Point “The day the team talked me (Faulconer) into wearing a hotdog suit.”
The Advice “Do what you love and work hard.”
In 2015 “By 2015, Franchise Foundry will have changed the way the franchising industry helps emerging franchises grow.”

NO. 6 KYNETX
Founded 2007 City Lehi Employees 15 Industry Software Web site www.kynetx.com Founders Stephen W. Fulling, 46; Phillip J. Windley, 51
What It Is A provider of development tools that create context-sensitive, cross-platform apps that help build relationships between app owners and users.
Why It’s Watch-Worthy Founded by leaders in Utah’s tech field (the pair created iMail, the first e-commerce platform for small to medium-sized merchants), Kynetx is quickly on its way to standout success with a unique product, big buzz and strategic partnerships.
The Big Break “Strategic investment with Acxiom.”
The High Point “Signing our first deal with a multibillion-dollar company through our strategic investment partner, Acxiom.”
The Low Point “The first pitch ever. We sucked.”
The Advice “Believe.”
In 2015 “The next billion-dollar company in Utah.”

NO. 7 METER SOLUTIONS
Founded 2007 City Provo Employees 20 (on average) Industry Utilities Web site www.metersolutions.com Founders Paul Dickson, 24; Taylor Turnbull, 24
What It Is An installer of automated meter reading devices on water, gas and electric meters.
Why It’s Watch-Worthy With an ever-growing industry and smart execution, this student-run company has positioned itself as an industry leader and installed more than a quarter million devices.
The Big Break “We were awarded a contract with Questar Gas company to install AMR devices on every gas meter in St. George and Cedar City.”
The High Point “We were named the BYU Student Entrepreneurs of the Year.”
The Low Point “The first project we did was in California, and the company who hired us didn’t pay its final invoice of more than $25,000, which really hurts a cash-struggling startup.”
The Advice “Don’t be afraid to start a company if you believe in it and are willing to work hard.”
In 2015 “We will grow Meter Solutions into the premier AMR/AMI installation company in the nation. We should also have a strong international presence in Europe, South America and Canada. Currently, more than 70 million devices are planned to be installed in coming years, which provides an incredible growth opportunity for our company.”

NO. 8 FOR EVERY HOME
Founded 2008 City Lindon Employees 20 Industry Direct sales Web site www.foreveryhome.net Founders Becky J. Anderson, 50; Paul Anderson, 54
What It Is A direct sales company that sells fragrance products and is a sister company to For Every Body.
Why It’s Watch-Worthy With more than 1,700 consultants and more than $1 million earned in its first year of business, For Every Home has catapulted to success. And with For Every Body doing nearly $20 million in sales in 2009, For Every Home has a strong home base to grow from.
The Big Break “Puerto Rico. The business down there is growing so quickly among working moms.”
The High Point “Seeing the business take off and women being successful.”
The Low Point “The long hours of work and the down economy. However, all challenges are opportunities, and we have learned a lot.”
The Advice “Stay at it, have passion, think big and look at challenges as opportunities. One of my favorite quotes is, ‘It’s the fast that eat the slow, not the big that eat the small.’”
In 2015 “We’ll be recognized as the most successful innovative home fragrance company in the country.”

NO. 9 INSTANTAV
Founded 2009 City American Fork  Employees 8 full time, 11 contractors  Industry Software/Signage Web site www.instantav.com  Founders Bob Long, 55; David Daniels, 52
What It Is A provider of portable digital signage solutions.
Why It’s Watch-Worthy With an experienced and proven executive team at the helm (they have a combined history of more than 80 years in high-tech solutions), InstantAV has an exciting future with its one-of-a-kind product in a developing market.
The Big Break “Our first sell was to a high-profile client that validated our entire business plan.”
The High Point “Assembling a talented team of people that we like to work with, starting with a bold vision and working to create an entirely new product in a totally new and undeveloped marketplace.”
The Low Point “Raising investor capital during the worst capital market in 71 years.”
The Advice “Begin with a bold vision and then be willing to burn the ships in the harbor. Once you start, there will be plenty of obstacles. But each one presents an opportunity to adjust and move forward.”
In 2015 “We’ll be the world leader in digital signage product and services.”

NO. 10 MAAKOA
Founded 2009 City Orem Employees 14 Industry Network marketing  Web site www.maakoa.com Founders Bruce Davis, 48; David Simpson, 52
What It Is A direct sales company whose flagship products are the antioxidant beverage Koopuwa and its line of MXP3 Xtreme Performance Protein Powders.
Why It’s Watch-Worthy In a valley that’s been more than kind to network marketing companies, Maakoa has made quite the splash. Since its launch last year, the company has skyrocketed in growth and invested an interest in local programs (the company was the title sponsor of the Stadium of Fire last year and is a major sponsor of the Utah Flash).
The Big Break “We’ve been blessed with a solid, steady growth from the beginning, and every day Maakoa gets stronger and stronger.”
The High Point “Coming out with our two amazing products in a perfected state. They were sent back multiple times before they were accepted.”
The Advice “I don’t care who you are, believe in yourself and never quit.”
In 2015 “We’ll be global and one of the most successful network marketing companies in history.”
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The Startups To Watch list was selected from a pool of applicants that have less than three years of operating history. The winners were determined by BusinessQ’s editorial board.

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Talk about built to last. Eighty-five years ago, W. W. Clyde and Co. sprung up in Springville with a sturdy promise: “Our word is our bond.” And with each company they’ve constructed or acquired — Sunroc, Geneva Rock, Gorge Rock, Beehive Insurance and Clements Concrete (now all under the umbrella of Clyde Companies) — that promise has only gotten more powerful. “Businesses need to build on the foundation of character and integrity,” says Wilford W. Clyde, CEO of Clyde Companies and grandson to the founder of W. W. Clyde. “There’s no substitute for honesty.” And with 2,100 employees, $480,000,000 in 2009 sales and a rock-solid reputation, we couldn’t agree more.

My first job with Clyde was back in high school. I worked on the asphalt crew after school. But it was never my plan to work at Clyde long term. That’s why I went to school in accounting — I was going to be a public accountant and do my own thing.

But when I got to the end of school, there was an opportunity at Geneva Rock for a full-time accountant. So I started there in 1977, became general manager in 1987 and was made president in 1988.

It’s been a great career for me. It’s a lot of fun. I like coming to work every day, and I enjoy the people I work with. It also doesn’t hurt that there were great people before me who did all of the hard work. We have a lot to live up to.

In 1998, we decided to create a parent company called Clyde Companies. We had a number of businesses founded by my grandfather that were somewhat integrated but operating as separate entities. It just made sense to bring them together.
There were definitely challenges that came with getting all the companies to work as one. From centralizing the accounting to figuring out logistics and administrative issues, people had to make adjustments with the new policies and procedures. But with the change came a greater cohesiveness. It was definitely a big milestone for us.

It’s a huge responsibility to employ people and be responsible for their livelihood, and it’s something we take very seriously. I can’t stress how important it is to get the right people. It’s an absolute necessity. If you are going to be the best, you have to attract the best.

Our roots are firmly established in Utah County, and we feel privileged to have our headquarters here. This is a great place to live, and the quality of people is high. When you hire people in Utah County, you hire people who care.

We’ve been successful because we were founded on the value system of “our word is our bond.” My grandfather believed that. He believed in being financially strong and not overextending yourself. He believed in quality work and quality products and the idea that if you do it, you do it right. It doesn’t matter what type of business you own, those are the ingredients to success.

The vision for our company is building a better community. We build roads, we supply materials to buildings and we complete construction projects. But truly, our goal is to build a better community from the standpoint of providing employment for employees and contributing to this wonderful area. We’ve been involved with a number of universities in the state, specifically UVU and its construction management program, and making a difference in the lives of locals is the best thing we do.

The economy is tough right now. We’ve had to look at cutting back our expenses so we can compete. It’s going to be a tough two or three years, but we’ll survive because we work hard and stay conservative. That’s actually my No. 1 piece of advice to companies: You have to be conservative on your projections, because if you can be successful with conservative projections, you will be successful. Period.

There are so many things to look forward to, so you have to focus on the positive. Work hard, and look at the good around you. If you don’t dream the dream, the dream won’t come true.

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