Kevin Kegan, 48, runs Blossom
Flower Shops, the business his
grandfather started more than
80 years ago. Kevin’s daughter,
Kelly, 25, is the fourth generation
Kegan in the family business.
Hear
and
be heard
Family businesses
offer unique challenges
THIS YEAR, a record-breaking snowstorm
right before Valentine’s Day could have been a
real setback for Blossom Flower Shops, Kevin and
and rewards
Sue Kegan’s family floral business in New York.
Valentine’s Day is one of busiest and most important
holidays of the year in the floral industry, and the Kegans’
business needs to capitalize on such opportunities
because, over the last decade, large national telephone and
cyberspace florists have taken a huge portion of the market.
By Stephanie E. Ponder
“Normally four to five inches of snow will shut down
businesses in our area,” explains Sue, who helps run the business her husband’s grandfather established in 1925. “In this
storm, we got 26 inches, yet our shop continued working full tilt.
This kind of employee loyalty is normal for us.” She says that working with family gives their business a trust factor and intense
employee commitment that most other businesses don’t enjoy.
The Kegans, who employ between 15 and 20 people, six of
whom are family members, say that one of the keys to the longevity
of their business is being able to talk through problems and to listen to
what everyone has to say.
NOTHING captures the essence of the American dream
more than a family business. Parents put blood, sweat and
tears into a company that one day they can hand over to
their children, who in turn can hand it over to their kids.
Whether they’re small and familiar mom-and-pop operations or
large companies, such as Ford and Hearst, in which a single family
controls the enterprise, family businesses play an important role.
According to the Family Firm Institute, 80 to 90 percent of firms
in the United States are family businesses, and they account for
more than half of the gross domestic product.
“Like all businesses, we have occasional bumps and bruises,”
says Kevin, who succeeded his father, Thomas Kegan, at the helm of the
family business. “But, since we interact all day, nearly every day, we
work most of them out on the fly. We’re very open. If there’s a problem,
sometimes it gets talked out during dinner, or family gatherings.”
Running a family business presents unique challenges, but
also can result in trust, intimacy and time spent with loved
ones—rewards that aren’t available with other jobs.
In the next few pages, The Connection looks at some of the
unique issues facing family firms, shares the experiences of
Costco members who have faced those issues and offers tips any
business can use to be more successful.
Blossom Flower Shops, which comprises a central distribution
facility in Yonkers and an additional shop in White Plains, also holds
monthly staff meetings during which any problems can be worked
out. “We make sure everyone is allowed input,” Kevin says.
Working it out with words
“Yes, there have been family members who have moved into
other careers,” says Sue. “Not everyone has the flower business
in their blood,” adds Kevin. “But the family members who have
remained in this business have been here for 15 to 25 years.
This business is our bread and butter.”—Will Fifield
Challenges for family businesses begin with a key part of any
workplace: communication. With family members involved, communication takes on a different twist.
“The communication approaches we use around the family’s
kitchen table seldom serve the needs of the business’s conference
table,” says Costco member James Lea, a family-business adviser who
teaches at the University of North Carolina at Chapel Hill. “When family
