Focus 2013
STILL GOING STRONG Celebrating Mid-Valley Businesses That Have Stood the Test of Time FOCUS / STILL GOING STRONG • FRIDAY, FEBRUARY 01, 2013
For Family-Owned Businesses, It’s About Community 02
Oregon Freeze Dry: Deciding to refocus on the basics
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Allann Bros: Still fiercely independent after 40 years
Family businesses take care of their employees.They don’t want a revolving door when it comes to hiring staff. Employees become part of the extended family. One result: Employees can become more vested in the company’s success and work that much harder for their employers.
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Burcham’s Metals: Expanding its global reach, staying true to its core values
One implication of that, Noxel said, is that family higher than nonfamily businesses – in part because businesses tend to be more frugal: After all, that’s the family businesses tend to stumble when it comes time family’s money in play when it comes time to make to pass the business along to the next generation. buying decisions. Statistically, he said, 30 percent of family businesses The focus on the long term also tends to mean that make the transition to the second generation. About 12 family businesses make decisions differently than a percent transition to the third generation and fewer than publicly owned company that knows another CEO might 5 percent transition to the fourth generation. be coming along in five years or so. However, family-owned businesses, especially in
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Cirello’s: A passion for local food and community
By Maria L. Kirkpatrick
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any of the longest-lasting businesses in the mid-valley happen to be family-owned.
That’s no coincidence, said Sherri Noxel, director of the Austin Family Business Program at Oregon State University. Noxel said the dynamics of a family business can help lead the way to long-term success.
“The concept of legacy is powerful and the service to the community is important because that’s where their kids are.” Sherri Noxel,
Culture is another reason for their success. Family-owned businesses tend to try harder because their name is on the business. They also place more importance on customers, who also tend to be neighbors, classmates and community.
“There was a story to start that Director of the business,” Noxel said. “That founder Austin Family Business Program had a family and those kids grew up at Oregon State University knowing that story and being part of that community. It’s a stronger part of the Family-owned businesses in the United States identity of the family and passing on those values and a comprise 80 percent to 90 percent of all business. stewardship. It’s about, ‘how can I pass the business on However, Donald Neubaum, a College of Business to the next generation?’ It’s a much longer-term view, associate dean for research, noted that the survival not just quarter to quarter.” rates of family businesses aren’t necessarily that much
In family businesses, Noxel said, “The concept of the mid-valley, tend to dominate the market in terms legacy is powerful and the service to the community is of longevity and visibility as they participate in their communities. important because that’s where their kids are.”
Surviving Change By Maria L. Kirkpatrick
to service and product. For example, Neubaum said, Robnett’s Hardware in Corvallis offers personalized usinesses that endure for the long run have been service and a different product line than the big-box able to anticipate and adapt to a constantly stores in the area. changing environment, say experts at the Oregon Buying in smaller lots from friendly, local owners State University College of Business. attracts a certain segment of people, Neubaum said. It’s And change – regardless of whether it comes from possible to take in a screw or bolt, get personal direction new competitors or new technology or any other source to the same product on the shelf and to buy just one – is constant. item, instead of a small bag of the necessary piece with As the way consumers make purchases change, half a dozen extras. businesses also must change. Elsewhere in the marketplace, restaurants need to
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For example: Books, music and video games easily are follow the same recipe for success and longevity – but purchased online, leading to the demise of bookstores often face additional challenges as well. across the nation. Neubaum said a successful restaurant has superior Those bookstores that remain have great locations, service or good value for the money. loyal customers, solid reputations and offer in-store “You have to offer a unique experience,” he said. shopping experiences. A bookstore, for example, might “Reputation and location can be key. There is nothing you offer a series of poetry or book readings in an attempt to can do that can’t be copied. Quality, service and reputation lure customers into the store. differentiate one place from another. Restaurants in south Donald Neubaum, a College of Business associate dean Corvallis have to overcome location and so must look for for research, said it’s amazing that Corvallis, a relatively ways to stand out.” small market, still has big downtown bookstores. FireWorks Restaurant and Bar, for example, is But their survival is a case in point: Those stores provide celebrating its 10th anniversary. It has proven live music, what customers want, whether it be in-store events, a wide open-mic and superior service will draw customers, Neubaum said of the south Corvallis restaurant. selection of new and used books or online shopping. With retail it’s hard to differentiate why one business makes it and another doesn’t but it still comes down Maria L. Kirkpatrick is a freelance writer in Corvallis.
It’s hard to run a business It’s even harder to run a business that endures and prospers for five years, 10 years, 25, 50, even longer. The mid-valley is blessed to have a number of businesses that have stood the test of time – and in today’s Focus edition, “Still Going Strong,” we’ll tell just a handful of their stories. We’ll focus on the secrets that have allowed these businesses to prosper over the long run – and, of course, as it turns out, their success doesn’t hinge on any secret formula, just continuous attention to the basics: Keep focused on your customers. Be ready to change as market conditions change. Do right by your employees. And work really hard. This section is meant to celebrate these businesses. If we had more space, we could have certainly told many more stories, but you can be sure this is a theme to which we’ll return in the future. In the meantime, we offer you these snapshots of businesses that still are deeply involved in the hard but joyous work of serving their customers in the best way they know how. These businesses are indeed still going strong. May you take away something from their stories that will help you build something that will endure.
Mike McInally, editor, Mid-Valley Newspapers