BUSINESS
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CX3 THE DETROIT JEWIS H NEWS
Marvin and Iry Fishman, above, and
other family members at Goodwill
Printing.
t the end of World War
II, Detroit was flooded
with returning GIs
who needed new
homes. A.J. Segal
and his. sons,
George and Ed,
recognized an opportunity and
started supplying gutters for
those homes.
Over the years, their corn-
pany grew into a large me-
chanical contracting operation
— a successful family business.
But soon after George Se-
gal's retirement in 1988, his
son and nephew filed for bank-
ruptcy.
Labor disputes and a weak
economy contributed to the
company's decline, says
Richard Segal, now 42. But he
believes that he and the rest of
the family were their own
worst problems.
"We didn't do succession
planning," he explains. When
George Segal retired, he sold
his stock to his remaining part-
ners, but, his son says, "we
didn't have a new strategic
plan."
The Segals' story is not un-
usual. Fifty percent of all fam-
ily businesses fail when the
second generation takes over,
according to Mr. Segal.
Now a financial planner
with the Detroit Financial
Group and president of the
newly-formed Family Business
Council, Mr. Segal hopes to
help others avoid the mistakes
he and his relatives made.
Organizations like the Fam-
ily Business Council are
emerging nationwide to ad-
dress issues such as succession
planning, sibling rivalry and
favoritism that affect family
businesses, regardless of in-
dustry or size.
Dorothy Heyart, whose
Business Enterprise Develop-
ment Center helps sponsor the
Family Business Council, esti-
mates that two-thirds of the
companies in the Detroit area
are either family-owned or
family-controlled.
The Jewish business com-
munity is no exception. For
years, Jews faced discrimina-
tion in the corporate world. So
they opened their own print
shops and groceries, clothing
stores and restaurants.
"Almost every immigrant
group had that experience,"
says Craig Aronoff, a manage-
ment professor and family
business consultant in Mari-
etta, Ga.
Most people think of family
businesses as retail operations.
New York Carpet World, Half-
Off Card Shop and Mercury
Paints come to mind.
But many family business-
es, including Goodwill Print-
ing, serve other companies.
Some, like Book Couzens Trav-
el, offer services.
Still others, such as Schiller
Construction, work behind the
scenes as builders, electricians
and plumbers. There are also
attorneys, doctors and accoun-
tants who share office space
with their sons, mothers and
cousins.
Over the years, these oper-
ations experience the same ups
and downs as non-family busi-
eyond Dollars
And Sense
nesses. Yet, unlike others,
they can't always leave their
families at home.
Most won't talk publicly
about their problems. They
prefer to stress the perks of
working together.
Parents, like Janet Ran-
dolph, owner of Book Couzens
Travel, are quick to point out
how much they enjoy working
with their children.
Her daughter, Hildy, and
son, Chuck, run the ticket sell-
ing operation their grandpar-
ents began from home 40 years
ago. They sell tickets to con-
certs and sporting events,
while their mother runs the ad-
joining travel agency.
"People call (Hildy and
Chuck) from all over the coun-
try," Ms. Randolph says. "It's
nice to know that my children
did this."
Donald Schiller, whose son,
Richard, recently took over as
president of the family con-
struction company, enjoys
working with his sons, too, but
he has struggled occasionally
with his dual roles of father
and experienced businessman.
"I give them advice that they
sometimes follow," he says, of
sons Richard and Robert, who
are now sole owners.
"As the father working with
the sons, the challenge —
Family businessesface
a di erent future.
SUSAN KNOPPOW SPECIAL TO THE JEWISH NEWS
which is not always met — is
to try not to put a damper on
the creativity of the younger
generation."
The Schillers' occasional
dilemma is but one of the is-
sues that face family members
who work together. It is the
kind of issue that otherwise
private business owners have
been known to discuss at Fam-
ily Business Council meetings.
"Every family business
thinks it is unique," says Mr.
Segal. When they attend Fam-
ily Business Council meetings,
(members) find out that every-
one else has the same con-
cerns.
"The laundry list is out
there," he says. What if in-
laws can't get along? What if
Dad won't step down? What if
one of the kids has a drinking
problem? "Communication is
always the key."
Years ago, parents told their
children to "go out and become
a professional," says Dr.
Aronoff, whose family still runs
a wholesale clothing business
in Atlanta.
Today, 50 percent of his stu-
dents say they want to run
their own companies some day.
"They see the family business
as an incredible opportunity."
Mr. Schiller's sons recog-
nized that opportunity, but
only after both had pursued
other careers. Richard, 44,
tried practicing law, and
Robert, 43, taught special ed-
ucation before joining the fam-
ily construction firm.
It was a business they had
grown up in during summers
and school vacations "with a