In 1962 Arto Alajian arrived within the U.S., having fled Egypt and his shoe-manufacturing enterprise. He turned a milkman in Los Angeles, after which a ceramic tile installer, after which a tile maker. That was 1966.
Quick ahead to 2024, and ARTO, the corporate, is a world provider of handcrafted ceramic, porcelain, and concrete merchandise. Armen Alagian, the founder’s son, now co-owns the enterprise.
He and I lately spoke, addressing the challenges and rewards of generational, family-owned corporations. The audio of our whole dialog is under. The transcript is edited for size and readability.
Eric Bandholz: What do you do?
Armen Alajian: I’m the co-owner of an organization known as ARTO. We make rustic and stylish handmade ceramic and concrete tiles. We manufacture in California and promote on-line and in showrooms in Los Angeles, nationwide, and globally.
My dad, Arto Alajian, began the enterprise. He and my mother had a manufacturing unit in Egypt. They made leather-based footwear there, however the authorities took their enterprise. So in 1962 they got here to the U.S. My dad was a milkman within the morning and went to highschool at night time to be an airplane mechanic.
He finally met a lady who made ceramics. She did mission restoration work. On his milk route, my dad would take her ceramic bricks to eating places and mothers in El Segundo and Santa Monica and return on weekends to put in them. That’s how he began, in 1966. His first product was a clay brick.
My brother Varoujan and I began putting in at a younger age. My dad and mom divorced once I was 10, and I used to be estranged from my father. He fired me 5 instances, and I give up 5 instances. We argued concerning the enterprise.
In a while, we made peace, and we grew. My dad known as me and mentioned, let’s determine it out. And we did. He revered me, and I revered him. Earlier than he handed, we had been companions and associates.
My brother is an proprietor. I’m studying the best way to be a CEO. I’ve all the time been a associate. My brother is a full-on associate and proprietor, and we talk about technique.
He has one child. I’ve eight. We’re fascinated by the following technology. Being accountable for your future is the trick, controlling your earnings and liberty. He needs that for his child; I would like it for my children.
We are able to solely supply our youngsters a chance. We are able to’t power them. Generational companies are nothing greater than being a household.
Bandholz: Are your children within the enterprise?
Alajian: Sure. I let my children work within the enterprise once they had been youthful. I’m a salesman. After we traveled the nation in a van and noticed clients, we homeschooled. The youngsters would stroll in, shake the individual’s hand, and say, “Hiya, my identify is Adam,” or, “My identify is Sarah.” So, they’ve all been round enterprise. They love enterprise. However I compelled all of them to go away and work for different folks, too.
They’ve since returned. All of them desire a position within the firm. I insist they arrive in early and depart late — the old style model of working. After which discover your house. I would like the youngsters, on the finish of the day, to be house owners. They don’t need to be operators.
Bandholz: I intend to offer my children possession if the enterprise pursuits them.
Alajian: A enterprise turns into generational when operators are separated from house owners. My children who develop into operators will probably be handled like executives and compensated properly in the event that they carry out. However house owners have a separate mentality, whether or not working the enterprise or not. That’s the best way to increase it to the third or fourth technology.
However the hot button is to offer children the choice to be operators, house owners, or each. Don’t power one or the opposite.
My aim was attaining generational wealth. However no extra. My wealth isn’t cash. True wealth is that my children’ children know and love one another. Cash is a software that can assist you maintain a household collectively. Wealth isn’t precise money. It’s expertise and the power to outlive the following technology as a result of liberty comes from having capital in your pocket.
Bandholz: The place can people purchase your tiles and bricks?
Alajian: In 300 shops across the U.S. or at Arto.com. Our Instagram is @artobrick. I’m on LinkedIn.
