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By Ashley Luke

Small businesses are big. Today, there are more than 33.2 million small businesses in the United States and 19% of them are family owned. Many of them operate in the trade industries—construction, plumbing, electrical, painting and more. They employ mothers, fathers, sisters, brothers and cousins, often through multiple generations, and share decades of valuable trade knowledge, as well as financial success.

A family business has many benefits, including the ability to make swift decisions because of the closeness of partners in (hopefully) good communication. The leadership is frequently empathetic, placing a priority on family values and is usually willing to make greater sacrifices for the success of the business.

Of course, working with family isn’t just business, it’s personal, too. The complex dynamic often brings potential pitfalls along with the success. It can be hard to separate family life from work life, which can create serious rifts if not dealt with properly. And sometimes difficult problems are inherited in the line of succession, leaving the next generation of leadership to unravel difficult situations they didn’t create.

Here’s a closer look at some benefits and pitfalls of family operations, plus thoughtful tips and strategies to help resolve conflicts when they arise and create a smooth succession when the next generation is ready to take the reins of the family owned future.

The Benefits

Knowing the Founder
When the founder is your father, mother or close relative, it is easier for you to embrace the business’ core values and communicate them to non-family employees. This builds a strong culture within your business, creating an environment that inspires everyone.

Tim Lapp, co-owner and CEO of Lapp Electric in Lancaster, Pa., a second-generation family owned business, even wrote a book based on the history and culture his father, Manny Lapp, cultivated when he started the business in 1969.

“After my brother and I bought the business from our dad,” Tim Lapp says, “I wanted employees who didn’t know him to have a better understanding of why values are important to us.”

Family Trust
You know your family inside and out. If they’re your business partners, you’re more likely to have a strong bond that encourages trust and faithfulness to the business. It also makes growing the business easier when you know you have a strong support system.

A Sense of Pride
When you’ve grown up in a business, you can’t help but feel a sense of pride in the work, the company and the industry in which it operates. This personal investment in the company drives you to inspire others and ensure the business is successful for future generations.

The Pitfalls

Too Much Familiarity
When you work with family, you often know each other too well. This means you already know their strengths and weaknesses. It also means that you may have a tendency to focus too much on family tradition, potentially making you closed-minded to change, which could impede ingenuity, creativity and opportunity for growth and efficiency down the road.

Existing Family Dynamic
As Tim Lapp says of working with his older brother, Greg, who serves as co-owner and CFO, “brothers are born for adversity.” Unfortunately, workplace conflicts may carry over to your personal life, and vice versa, which creates uncomfortable situations that can have serious negative impacts on the business. It’s important to keep lines of communication open to avoid judgement, criticism and lack of support from family and others in the business.

Strategies for Success

Remember: It’s Just Business
When Resolving Conflict Sometimes you inherit difficult situations, such as family members who aren’t the best fit for their job. Deciding to move the family member to a different position or let them go entirely may cause disagreements within the family, causing events like Thanksgiving dinner to be stressful.

However, it’s important to do what’s in the best interest of the company; not what’s best for family relationships. Remember, not every family member is a good fit for the business.

Tim Lapp assures that time does heal family business wounds. “It may be difficult to let an uncle or cousin go, but over time the family does understand that the decision was made in everyone’s best interest,” he says.

You can’t be compassionless, though—proceed with care and consideration. It’s important to strike the right balance of empathy and tough decision-making based on your family and business dynamics.

Implement Systems That Align with Goals and Culture
First, use a business coach—one can be found by searching LinkedIn or contacting your local Chamber of Commerce—to help systemize your business and establish a career path for leadership roles. This is especially important if multiple family owners are involved in co-ownership or partnership roles.

“You need an impartial mediator,” advises Tim Lapp. “You may even want this support over an extended period of time.” Lapp Electric consulted with a business coach for seven years.

Also, intentionally include non-family members as part of your leadership team. Separating your emotions from the business is not an easy task, especially if you are directly working with or managing family members, and outsiders can provide a beneficial third-party perspective. This also encourages other talented employees to advance within the company and can help prevent resentment among the ranks over familial favoritism.

At Lapp Electric, two leadership positions are filled by individuals outside the family: the general manager and the controller.

“They add an impartial perspective to our leadership team that balances our business perfectly,” says Tim Lapp.

Finally, establish a formal hiring process that is conducted by non-family members. Require family members interested in joining the company to follow the same job application, interview and hiring process as outsiders—and create a fair promotion and salary system that is based on individual merit and ability. This helps to objectively determine whether a family member is indeed qualified and motivated to be an engaged participant in the company’s growth, rather than just an easy fit.

Create a Clear Plan for Succession
Studies have shown that only a third of family owned companies make it to the second generation, and just 12% make it to the third. Often, family businesses dissolve because they don’t have a succession plan in place.

Because leadership succession can become a source of conflict, it’s best to work with a consulting group to assist you in formulating timelines and strategies. This also helps to remove you from bearing the sole burden of difficult decisions and choosing new leadership roles.

However, don’t push family members into leadership positions if they’re not interested or ready. Let them decide whether or not it’s a career path they would like to take. Frequently family members explore careers elsewhere and later decide to join the family business.

The family members who become your successors may surprise you. Tim Lapp says his youngest daughter has expressed interest in learning more about the family business. Currently a college student pursuing a business degree, she has started interning with Lapp Electric’s controller. And the husband of Tim Lapp’s oldest daughter is hoping to join the family business, as well.

“My son-in-law is currently in his fourth year of apprenticeship school,” he says.

While it’s still unclear who the new leadership team will be, Tim Lapp, who recently turned 50, is starting to think about the future.

“Lapp Electric has been a family owned business for over 50 years, and my brother and I have successfully led the business for the past 20 years,” he says. “We’re excited to hopefully pass the business along to the third generation.”

In the 50 years the company has been in business, Lapp Electric has remained within the family and grown to more than 30 employees.

For Future Generations

Family business is filled with ups and downs. With the proper planning and strategies in place, as well as thoughtful leadership, the culture the original founders created—along with valuable trade skills and years of success—can be passed down to thrive in future generations.

Ashley Luke is Senior Product Manager, Duct Tapes, Shurtape Technologies, LLC.

After nearly 25 years in the plumbing & heating industry I can say with confidence I’ve heard just about all there is to say about tankless, right or wrong…most of it wrong!

In this video I go over 8 separate myths that are commonly said about tankless. With each myth I give facts and opinions based on my experience that bust every myth.

If you’d like more information about tankless check out Rinnai US

 

Southern Florida’s tropical climate provides a number of design considerations that HVAC professionals north of the Mason-Dixon Line aren’t often confronted with. Not the least of these, reducing humidity within mechanical and conditioned living spaces is critical to ensure indoor air quality.

Even under normal operating conditions, preventing condensation and mold accumulation on ductwork and equipment located outside of the conditioned space can be a challenge. Making extraordinary demands of an ordinary cooling system can lead to a number of consequences, from underperformance to mold growth. This was exactly the situation that Greg Borek found himself in after meeting homeowner Dr. Nils Nystrom.

Borek is president of B&B Cool Air, based in Lehigh Acres, Fla. He runs the 40-year-old cooling company with his brothers, Matthew and Frank Jr. They have 11 trucks on the road providing AC and commercial refrigeration service to the southwest part of the state.

“When I met the Nystroms in mid-2019, they’d been without air conditioning for a few weeks while trying to find a contractor that could properly address their comfort issues,” said Borek. “Their previous 12-SEER unitary system had failed and they were running a portable cooler in the bedroom for the time being. The challenge was that they’re adamant about maintaining indoor temperatures between 64°F and 73°F, and yet, they’re quite environmentally conscious.”

Mr. and Mrs. Nystrom are originally from Umea, Sweden, which is the latitudinal equivalent of Fairbanks, AK, roughly speaking. Both retired medical professionals, they’ve lived all over the world and throughout the U.S., generally selecting cooler climates when possible.

“Heat belongs in the sauna,” said Nystrom. “Growing up in Sweden, we’d sleep with the bedroom window open all winter long.  We have a hard time sleeping if the bedroom is warmer than 18°C (64.4°F). Frankly, I don’t care for the climate in Florida, but it’s where our grandchildren live.”

“Our search for a contractor spanned a few weeks,” he continued. “Nobody seemed willing to put forth the effort needed to create the indoor environment we wanted. We were finally referred to B&B Cool Air. Greg Borek is the consummate professional, and he did his due diligence after meeting us and seeing our home. He listened and presented options.”

Undersized and leaky

The 2,000-sq.-ft., 50-year-old home had been cooled by a three-ton, 12 SEER unitary system until the compressor failed. Not only was it undersized for the demand of keeping the house cooler than average, but the ductwork throughout the home was leaking.

B&B Cool Air conducted a block load calculation, designing for a 66°F setpoint at an outdoor temperature of 95°F. The home required nearly five tons of cooling, which included duct loss.

“At first the Nystroms were adamant that they wanted a new unitary system,” said Borek. “We found that we could maintain temperature by installing a five-ton, inverter-driven unit and sealing or replacing the ductwork, but condensation on the ductwork and air handler was a real concern.”

The home sits right on the water, which adds to the challenge of Florida’s humid climate. All of the ductwork is run through a very small attic space.  Borek suggested installing ductless heat pumps instead of a unitary system to avoid the condensation issue altogether, but the Nystroms wanted to further explore their unitary options.

“I explained that if there was to be a unitary system installed, we insisted on installing a dehumidification system in the attic in addition to sealing the ductwork,” said Borek. “What finally tipped the scales in favor of a ductless system was the ability for the Nystroms to conserve energy by cooling only the rooms they were using at any given time, instead of cooling the entire house. They liked the concept of letting unoccupied spaces idle at warmer temperatures for energy efficiency.”

“To us, the environmental advantage of cooling only occupied spaces is a tremendous benefit,” said Nystrom. “It makes very little sense to cool the entire house at any given time.  In my old house, it very much annoyed me to cool the entire home when I only needed space conditioning in the 300-sq.-ft. bedroom.

Ductless meets the need

B&B Cool Air has been a Fujitsu Elite dealer since early 2019.  Their loyalty to Mark Rambo, at Ferguson Fort Myers, initiated the switch to Fujitsu.

“Mark called on my Dad in the ’80s, and we’ve had an outstanding relationship since,” said Borek. “He actually has a contractor’s license, so he understands what he’s selling.  When he made a transition to Ferguson last year, we switched to Fujitsu to stay with him, and it’s been a good move. Fujitsu multi-zone systems are easier to set up than the products we’ve used in the past, and the quality of product and the warranty are as good or better.”

Once the decision was made to use multi-zone ductless split systems, Borek zoned the home according to input from the Nystroms.

“We discussed where they spent most of their time and how cool they wanted each of the living spaces,” said Borek. “Ultimately, we installed two multi-zone systems, a two-zone and a four-zone; 18,000 and 36,000 BTUH, respectively.”

Work began in the master bedroom. Its wall-mount head, along with a smaller one in the guest bedroom, is connected to the smaller Halcyon condensing unit. After the bedroom systems were operational, several days passed before B&B could return to complete the rest of the installation. During that time, the bedrooms maintained setpoint while also keeping the rest of the home at a livable temperature.

The larger Halcyon model provides capacity to four wall-mounted evaporators ranging from 7,000 to 12,000 BTUH each, which cool the rest of the single-story home. These heads are in the dining room, living room, kitchen and study/office area. 

“Aesthetically, running linesets proved a bit tricky,” explained Borek. “The roof has an extremely low pitch, but we managed to get the lines into the attic area, insulate them well, and drop down through the soffit to the condensing units. Once outside, the linesets and condensate lines are covered in aluminum line-hide.”

The dining room evaporator required the use of a condensate pump.  Otherwise, all the indoor units were mounted on exterior walls, so condensate can drain naturally. B&B Cool Air took a few extra steps to maintain consistent temperatures within the smallest areas of the home, where installing a mini-split head couldn’t be justified.

In the laundry, a small, low-speed fan draws warm air out of the room, discharging to the kitchen via a ceiling grille. As it does, conditioned air is pulled through the laundry doorway. This recirculation system can be controlled manually as needed.

Recalling Sweden

 Over the first few months after the retrofit, the Nystroms contacted B&B Cool Air multiple times to express their appreciation. The system was more comfortable and controllable than they’d expected.

“We’ve never been as comfortable in the home as we are now,” said Nystrom.  “There’s no noise inside or outside. At worst, the sound level is a whisper. Greg’s honesty and experience were so apparent throughout the whole process, and we can’t say enough good things about his company.”

The Nystroms programmed the individual ductless heads to cool spaces according to their daily routine. The bedroom is cool while they sleep, the kitchen unit comes on when they wake up, and so on. They’ve found this to work very well, and can easily override the programming as they wish.

 “When I was a child in Sweden, the town used to flood the soccer fields to create ice rinks over the winter,” said Nystrom. “In Phys Ed., we’d either skate or we’d find a hill and ski. Now, with climate change, it’s too warm for any of that. I contemplate these things when thinking of our changing world. One of the things I appreciate about the efficiency of our new Fujitsu system is that we can maintain a cool home with less impact on the environment than a conventional system.”

You might say his affinity for the Bonsai arts helped channel his inner Zen, patience and attention to detail. But you’d have to ask him yourself. “I studied Bonsai for years, even went out to Oregon to study the craft,” says Tom Castagna, install department supervisor, Modern Heating & Air Conditioning, LLC, Milford, Conn.

Working part time as an auto mechanic throughout high school, upon graduation, Tom Castagna (@tstags on IG) was approached and offered a job at Shelton oil as an apprentice where he primarily serviced and installed oil-fired equipment, and dabbled in a small amount of air conditioning. “Having no knowledge of what the trade actually consisted of, nor what my new position would entail, I couldn’t resist $1/hr. more an hour than what I was then making. This started my love affair with HVAC,” says Castagna.

From there, Castagna moved to a mechanical company for eight years where he service and installed residential and commercial systems and also worked on refrigeration, ranging from kitchen equipment, vending machines, walk-in cooler/freezers to tooling/CNC machining.

Castagna has been at Modern for the last seven years where he started as lead service technician, and would occasionally install when needed, to now managing the install department for the past two years.

Along Came a Mentor

Castagna soaked up as much as he could early on as he has been lucky to have worked with some extremely knowledgeable guys in the trade. Castagna says he’s picked up something from everyone he’s worked with, whether that be knowledge of trade, or aspects of life.

“The first couple months being in the trade I rode along with a very old school oil tech named Jeff. Jeff was tough, extremely tough. My first day of work he picked me up and the first words out of his mouth as I sat in the van—pointing at the radio and all dashboard controls—’see all this, you don’t touch this, ever.’ At first, I hated this man for his short temper, general distain for the world, and teaching style, but his general knowledge and skill was something I’d never experienced before so I shut up and took it all in—the good and the bad,” says Castagna.

But it’s current boss, Matt Sando, who has molded Castagna into the man he is today. “We worked together at a previous company where we both weren’t thrilled with the direction the company was going and he knew he could do better. I remember being on a job with him days before he was leaving and he was showing me different van designs and logos and wanted help choosing. I knew once he was established, I’d be making the jump. And here we are seven years later, and the company treats everyone as a family, a modern family,” says Castagna.

According to Castagna, Sando taught him how to be a leader, and he’s matured immeasurably under his guidance. “I would like to think I’m a good role model. Trying to learn and navigate a new trade in my later teens and early 20s, along with training apprentices, was difficult to say the least. I think I may have carried on some of Jeff’s earlier teaching styles but luckily, I always had a tough group of apprentices that could endure my lack of patience. I’ve learned a lot about myself as well as a ton of life skills in this trade,” says Castagna.

Paying it forward can be just as rewarding. Setting a good example and being able to teach and watch someone’s timeline and rise to success is a great feeling says Castagna.

While Castagna says the industry does a pretty decent job of providing education and opportunity for all, he thinks a lot of tradesmen like to blame lack of work force on a generational laziness. “People just need to be better mentors and be more outgoing with recruiting young talent. I wasn’t looking for a job in HVAC at 17 years old, but someone approached me with an opportunity.”

However, on the flipside, people thinking of entering the trades need to have thick skin and a willingness to learn and work harder than ever before. In return, says Castagna, you can create a very comfortable life for you and your family.

Work/Leisure Balance

Early on, Castagna did not have a healthy work/life balance. “Everything was all or nothing for me and I put it all into my work. On my ‘days off,’ I was still at the shop or organizing my van or finding something to do,” says Castagna. “But as we know, that can’t last forever; you’ll reach a breaking point. I think I needed to get myself to that point to actually realize that I needed a life outside work. I really cherish my time off now.”

His advice? “Start your day early! There’s a lot you can get done before the average person wakes up. Stay organized and MAKE TIME for yourself/family.”

And for Castagna, this includes anything outdoors—concerts, fishing, hiking, hunting, working on cars and motorcycles. Also, playing darts and billiards with friends.

Oh yeah, I hope one day Castagna gets that 90-point ride for eight seconds.