Evan Vitale Consulting: Lessons learned from four North Jersey businesses on working with family

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Mitsu Yasukawa/staff photographer

Owners Anthony Aluotto and his mother, Sandy, preparing meatballs in the kitchen at Giovanni’s Deli in Fair Lawn. The deli is one of four local businesses that received a Family Business of the Year Award from Fairleigh Dickinson University.

Running your own business isn’t easy — add your relatives to the mix, and the task can be even more daunting.

Whether it’s living up to the standards set by a grandparent, finding the appropriate way to pass down ownership, or dealing with intergenerational and sibling tensions, family-run businesses face unique challenges that set them apart from other businesses. That explains why, according to PwC’s Family Business Services, only 30 percent of family businesses survive into the second generation.

Four businesses in North Jersey have beaten those odds. A deli in Fair Lawn, a light bulb business in Moonachie, a car dealership in Upper Saddle River and a pharmacy in Wyckoff were all honored last week at the 23rd annual New Jersey Family Business of the Year Awards, hosted by Fairleigh Dickinson University’s Rothman Institute of Innovation and Entrepreneurship. The companies were cited for their multigenerational impact, ties to the community, business success and commitment to family.

The leaders from each business sat down with The Record and shared insight on the struggles they’ve faced, the lessons they’ve learned and the secret to what has kept their family-run operations going.

Business: Giovanni’s Deli in Fair Lawn

Family ties: After Michael Aluotto suffered an injury that left him unable work in construction, he decided to take on his second passion — cooking. That’s when he, his wife, Sandy, and their oldest son, Anthony, decided in 1997 to open Giovanni’s Deli. Anthony, then 26, said he was reluctant to join the business. “I’ll give you a hand for a year,” he remembers telling his father. He’s been with the business ever since.

Anthony, now 43, runs daily operations with his mother, who does all the cooking and is the “main chef.” His father was with the business until he passed away in 2011. The business has evolved from the small shop it once was — extending its hours, expanding its offerings to sit-down meals, and even moving into the much larger location that seats about 50 customers.

Biggest challenge: In 2011, the business was being run by Anthony and his parents as well as Anthony’s two younger brothers. “We thought we would grow the business and try to do different things,” Anthony said. “It was really difficult. You have five different people thinking five different opinions all the time.” The final say, Anthony recalled, would be with his father, who kept the peace. But when his father passed away that year, the business faced a turning point. The younger brothers had other opportunities, so the family decided to leave the business with Michael and Sandy — though the brothers still help out when needed. “It was the best decision for our family,” said Anthony.

Secret: Anthony believes the secret to running a successful family business is “staying calm” and being open to what your relatives have to say about the company.

Best part: “Being part of a community, and having an extended family in Fair Lawn,” Anthony said.

Future: Anthony doesn’t know who will take Giovanni’s reins in the future — though his kids, who are 11 and 7, “think Giovanni’s is the greatest thing in the world.” But he thinks one aspect of the business — bottling and selling the deli’s vodka sauce — could be something the next generation could continue in the long run.

Business: Bulbrite Industries in Moonachie

Marko Georgiev/Staff Photographer

Catherine Choi is president of Bulbrite Industries in Moonachie. Her father started the business from scratch in 1971, selling light bulbs out of a suitcase. His eldest daughter joined the company in 2001. His advice to her? Start at the bottom.

Family ties: The company was founded in 1971 by Andrew Choi, who immigrated to the United States from South Korea in 1968 in search of his American dream. Andrew started the business from scratch, selling his first light bulbs out of a suitcase. Over the years, the company moved from New York City to South Hackensack, then South Hackensack to its current location in Moonachie. The company now also manufactures its own products.

Cathy Choi, the president and Andrew’s oldest daughter, began with the business in 2001. At that time, she was transitioning between jobs. She remembered her dad saying to her, “I’m turning 60. If you would like to join the family business, now would be a great time.” Cathy was with the business for eight years before being moved up to her current role. Cathy said her father insisted that she start at Bulbrite “from the bottom up,” regardless of her operations and finance experience. Cathy’s first job with the company? Customer service.

Biggest challenge: “Separation of home and office,” said Cathy. “I make a concerted effort not to call dad ‘dad’ in the office. We call him by his first name, just like anybody else.” Cathy also said she and the rest of her family — a brother and a sister — have different skill sets, enabling them to have clearly defined roles in the family business.

Secret: “If you don’t grow, you perish. That’s the reality of business today,” Cathy said. Putting the business first — before her family’s interest — is the best way to assure that the company will grow, explained Cathy. That’s why Bulbrite was able to open its first distribution center on the West Coast this year.

That’s the reason, she said, why her parents didn’t name the company “Choi Light Bulbs,” because “back then [Andrew] knew he wanted something that would outlive him.”

Best part: “I really do love coming to work every day with my family,” Cathy said in her acceptance speech at the awards ceremony.

Future: The company hasn’t started talking about who will take over after Cathy. But she said the conversations may be starting very soon.

Business: Jack Daniels Porsche, Audi, Volkswagen and Kia in Upper Saddle River

Jim Alcorn/special to the record

Jack Daniels IV, at left, and Mike Daniels at their dealership in Upper Saddle River. The company was founded by Jack Daniels III, who is memorialized on a plaque.

Family ties: After years in the car industry, which included stints at Ford Motor Co. as well as Volkswagen and Audi dealerships, John (Jack) Daniels decided to start his own dealership in 1972. That’s when Jack established Jack Daniels Motors in Fair Lawn. Jack’s sons, John (Jack) and Michael, eventually joined the business, cleaning the facilities or fixing up used cars. At first, they joined the company so they could afford college tuition to pursue very different careers: Jack had aspirations of becoming an architect, and Michael an accountant. The brothers enjoyed working with the business so much that they decided to stay — eventually becoming sales people, then taking on roles in management.

As their father got older, he eventually transferred the business to his sons, but they “had to work for it,” Michael said. Today, Jack and Michael run the company, which since its founding has expanded to nine locations around Bergen County.

Biggest challenge: The hardest part to running the business is “understanding your other partner,” Michael said.

Secret: According to Michael, being able to listen to other perspectives in the business, and then being able to compromise and accommodate the differences in opinion, is an important tool that will help a family business thrive.

Best part: “To see [my children] care so much about the business,” said Michael. “It reminds me of how I was.”

Future: Both Jack and Michael have adult children involved with the business, but Michael said he will “support whatever makes them happy and makes them feel fulfilled.”

Business: Millers Homecare & Compounding Pharmacy in Wyckoff

MITSU YASUKAWA/STAFF PHOTOGRAPHER

Owner David Miller, at left, of Millers Pharmacy in Wyckoff, meeting with nutritionist Robert Lukasik at the store, which opened in 1929.

Family ties: The pharmacy is in its third generation of ownership. David Miller, the owner and president of the pharmacy, said his grandfather had his own pharmacy in Passaic in 1919. During the Depression, however, he lost his store. Eventually, an opportunity arose to reopen a town pharmacy in Wyckoff in 1929.

When David Miller, now 61, was in his late 20s, he was at a crossroads. After graduating with a music degree from Cornell University, he could either continue his education, become a professional musician playing the French horn or join the family business. He chose the family business. Both of David’s parents worked at the pharmacy, even after David became the owner. His mother still worked at the business for 20 more years before she retired.

Biggest challenge: David said the biggest challenge in running the family pharmacy is that it’s at a “severe disadvantage” compared with larger pharmacy chains, such as Walgreens or CVS. The business has needed to adapt and compete by finding its niches. For example, under David and his current team, the pharmacy has focused more on compounding and creating its own products.

Secret: The secret to maintaining a family business is “patience,” said David.

Best part: “Being your own boss.” David explained it enabled him to make the business “his own.”

Future: At this point, David is the last pharmacist in the family, and the last member of the family in the business. With two young children, he’s not sure what’s next. While his 10-year-old son aspires to be a professional tennis player, his 12-year-old daughter has shown interest in the family business. When she was in first grade, she submitted a class assignment that read: “When I grow up, I want to be the owner of Millers Pharmacy!”

Email: anzidei@northjersey.com. Twitter: @melanieanzidei.

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