Carwashing’s Family Ties

Not everyone can work with family. While there are numerous rewards, surely there also are many pitfalls. Separating parenting from managing and personal from professional can be difficult whether at work or at home. In addition, ownership must contend with potential unrest from non-family employees who may view certain actions, hirings and promotions as unfairly nepotistic.

Moreover, with the added weight of needing to create sound (and clear) succession plans, exit strategies take on enormous importance for family businesses and can be a source of burden and worry for company founders.

Considering that just 30 percent of family-owned businesses survive into the second generation, 12 percent into the third generation and a paltry 3 percent into a fourth generation or longer, according to the Family Business Institute, the number of carwashing families that are well into second-generation ownership and third-generation participation is impressive. Or, at least that’s my perception.

The number of operators I know who work with a spouse, parent, child, sibling or cousin is disproportionate to those that don’t. That’s not too surprising considering family businesses account for 89 percent of all business tax returns, according to the Family Business Institute. Closely held businesses are the norm in the United States, and the carwash industry seems to be representative of that.

Nevertheless, it takes a special group of people to make it work. The dynamics within the organization and communication of a family business are unlike other companies, and the performance expectations placed on subordinate family employees can be extremely high. For owners who are eking out a living, the tendency or inclination to place business requirements ahead of family needs must be tremendous — if they can be separated at all.

But for those who succeed as a business, overcoming these factors seemingly serves to strengthen the family and its resolve. While the business may be synonymous with the family, the family identity is not solely the business. That is a critical distinction when it comes to healthy interpersonal communications and relationships outside the framework of the company. It also may serve as a reason why so many second- and third-generation family members have thrived within their respective carwash businesses.

The strength exhibited by healthy family businesses also enables these companies to create inviting work environments for non-relative employees, in which the overriding atmosphere is communal and the bonds formed familial. This is where the carwash industry seems to excel. Employee crews, in many cases, become extensions of family, which can strengthen teamwork and passion for the business. I don’t have to tell you how that can positively impact customer service.

This month we celebrate family, the family carwash and the nature of family businesses. We offer five operator profiles that together help form a microcosm of the industry, as well as a special Perspectives column from Lance Odermat, a second-generation carwasher with influential Brown Bear Car Wash. We also have included a story about family businesses in transition from Wayne Rivers of the Family Business Institute.