AARON VEHLING JOHN GESSNER JESSICA HARPER
White family spans four generations of funeral directors 2A Family is the future at Dodge of Burnsville 6A Delta requests subdivision of former NWA headquarters 9A
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DATE ##, 2009 SEPTEMBER 2, 2010
VOLUME 30, NUMBER # VOLUME 31, NUMBER 27
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The business of family-owned businesses Local owners share secrets to running a successful enterprise by Jessica Harper DAKOTA COUNTY TRIBUNE
we learn to respect one another,� New Market Bank President Bob Vogel said. Father son-team Jeff Belzer and Jeff Belzer Jr. of Jeff Belzer Chevrolet in Lakeville are also no strangers to family disagreements. When the automotive industry began to spiral downward several years ago, the dealership began to re-examine its advertising strategy.
Corporations may be sprawling across the globe, but family businesses continue to control the vast majority of the marketplace. Family businesses make up between 60 and 80 percent of all businesses, according to Ritch Sorenson, Opus endowed chair of the family business center at the University of St. Thomas. Studies suggest that even large, publicly traded businesses often have a family influence, Sorenson said. And Minnesota is a hotbed for family businesses. “This is the best place for family businesses,� he said. The University of St. Thomas is in the midst of surveying how many family businesses are in the state, but Sorenson hypothesizes that it has more than the national average. Photo by Jessica Harper Family businesses Beth Kohlnhofer Raskovich and Jeff Kohlnhofer have overseen thrive in Minnesota due Kohlnhofer Insurance Agency in Lakeville as president and vice presito its family-oriented dent, respectively, for 14 years. The brother-sister team took over the nature, and vast religious agency from their father, Victor, who founded it in 1954. and ethnic communities, he said. The secret to the success of a family business involves creating not only a stable enterprise but also a stable family, Sorenson said. New Market Bank, a fourth-generation, family-owned community bank, has accomplished this by creating a family council that develops guidelines for resolving disputes. The council, which was formed five years ago, is comprised of six family Photo by Jessica Harper members and develops New Market Bank, which has locations in New Market, Lakeville guidelines for resolving and Prior Lake, has been overseen by the Vogel family for three genconflicts. erations. Above are former bank president Bill Vogel (left), Lakeville “Everyone has a dif- branch manager Karen Vogel-Ramola, CFO Anita Vogel-Drentlaw, ference of opinions but and President Bob Vogel.
Jeff Belzer Sr. wanted to stick with print advertising, while his son, Jeff Jr., was set on pursuing an online focus. They decided to go with Jeff Jr.’s idea for a while, but eventually returned tto both p r i n t a n d online aas the market
FAMILY BUSINESSES
picked up. “Sometimes we are too much alike,� Belzer Jr. said. “We get stuck on one thinking his is the right way and the other thinks his is right.� Finding a compromise is key to getting out of these ruts, he said. Jeff Kohlnhofer, vice president of Kohlnhofer Insurance Agency in Lakeville, said he believes the secret to solving family disputes is always knowing when to apologize. “You have to learn how to say ‘I’m sorry’ and move on,� he said. “Lots of families that go out of business have grudges and don’t talk.� Kohlnhofer oversees the insurance agency with his sister Beth Kohlnhofer Raskovich. The two took over the agency from their father, Victor, who founded it in 1954.
Challenge of passing down the torch One of the most common challenges for family-owned businesses is to successfully pass the company from one generation to the next. Only a third of businesses make it to the second generation and between 12 to 15 percent make it to the fourth generation, Sorenson said. “Many business owners are used to thinking of themselves as independent owners – many don’t think ahead enough to prepare for the changes,� he said. New Market Bank has overcome this challenge multiple times.
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INSIDE BIZ FORUM
It isn’t easy to mix family and business. There are many challenges one will face when running a family business. 4A
LARRY WARNER FORUM
It’s clear that state government must be more proactive in reducing the per-unit cost of programs and services. 4A
DAVID OLSON
BEST PRACTICES
In business, as in life, relationships and trust matter. Relationships are important at every level within an organization. JEFF APPELQUIST 5A BUSINESS 101
BRETT KOLLES
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When delivering bad news, try to soften the blow by “sandwiching� negative comments between positive ones. 5A
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