What Makes a Family Business Successful?

Family owned businesses are the backbone of our economy. The University of Southern Maine's Institute for Family-Owned Business reports that 35% of fortune 500 companies are family-controlled. It has also been reported that family businesses are responsible for 50% of U.S. gross domestic product, 60% of the country's employment and 78% of all new job creation. Unfortunately, less than 1/3 of all family owned businesses make it to the second generation, and 1/10 makes it to the third. So what does it take to succeed and be part of the 10% who survive? Lauretano Sign Group has just celebrated 60 years in business and Michael Lauretano Jr. is being groomed to take the business into its third generation.
Recently, I had the pleasure of speaking with the Principals of Lauretano Sign Group (Mike Lauretano Sr. Owner, Pat Byrne President & C.E.O, and Michael Lauretano Jr. Sales Manager) to find out the secret of their 60 years of success. Their story is one of heartbreak, perseverance and direction.

First Generation

Lauretano Signs was begun by Mickey Lauretano in 1947 as a protest to the cost of show cards (50 cents). Mickey (an artist) started to paint them for himself and found it to be a profitable way to earn a living. In 1966 Mickey died leaving his wife Amelia and 5 children. Amelia decides to keep the business alive and continue her husband's vision.

Second Generation

In 1972 her son Michael turned down a job offer (Science Teacher) and joined his mother to build Lauretano Sign Group to what it is today. Michael brought his enthusiasm and the work ethic his father gave him. Michael and Amelia learned to distinguish family and business, sometimes the business conversation continued to the dinner table, but Amelia also knew how to lead and allowed Michael to learn from his mistakes. Michael in turn has chosen to introduce his son Michael Jr. to the business in the same fashion.

Successes & Challenges

In 35 years Michael took a struggling sign company to a leader in the signage identification field. Michael accomplished this through his determination, focus, and vision for his company. He refused to let anything get in the way of the success of the company. Michael knew that big ideas come with big price tags. Balancing growth with cash flow was one of the greatest obstacles he had to overcome. In order to take the business to the next level meant purchasing the equipment and machinery. Michael found a way, and adopted the motto "act like you are going to be around for a while." "Most people think of great or grand ideas but are unwilling to take the risk to execute them. Execute."
His greatest success has been to adopt the Henry Ford approach surround himself with a team of people who know about the things he doesn't. He doesn't have to be the smartest person in the room; he just has to make sure the job is getting done in the most efficient manner.

Third Generation

Michael Jr has been a part of Lauretano Sign Group his entire life. He has paid his dues and worked in every department of the company. He understands what it is like to work for the company and answer to the department heads and managers. His current role is to lead the sales force. Pat Byrne states "Michael has brought new energy to the company, specifically in the sales and networking area. His ideas and his personality have been fully accepted within the company."

Staying Alive

Lauretano Sign Group has decided to be part of the 10% who survive. They will do this through good communication, knowing when to let go, and their willingness to execute their vision.