In 1962 Arto Alajian arrived within the U.S., having fled Egypt and his shoe-manufacturing enterprise. He grew to become 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 worldwide provider of handcrafted ceramic, porcelain, and concrete merchandise. Armen Alagian, the founder’s son, now co-owns the enterprise.
He and I not too long ago spoke, addressing the challenges and rewards of generational, family-owned corporations. The audio of our total 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 high school at night time to be an airplane mechanic.
He ultimately 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 in regards to the enterprise.
Afterward, 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 have been companions and associates.
My brother is an proprietor. I’m studying how you can be a CEO. I’ve at all times been a companion. My brother is a full-on companion and proprietor, and we talk about technique.
He has one child. I’ve eight. We’re occupied with the following era. Being in control of your future is the trick, controlling your earnings and liberty. He needs that for his child; I would like it for my youngsters.
We are able to solely supply our youngsters a possibility. We are able to’t drive them. Generational companies are nothing greater than being a household.
Bandholz: Are your youngsters within the enterprise?
Alajian: Sure. I let my youngsters work within the enterprise once they have been youthful. I’m a salesman. Once we traveled the nation in a van and noticed clients, we homeschooled. The children would stroll in, shake the individual’s hand, and say, “Whats up, my title is Adam,” or, “My title is Sarah.” So, they’ve all been round enterprise. They love enterprise. However I compelled all of them to depart and work for different individuals, too.
They’ve since returned. All of them need a position within the firm. I insist they arrive in early and depart late — the old school fashion of working. After which discover your home. I would like the children, on the finish of the day, to be homeowners. They don’t must be operators.
Bandholz: I intend to offer my youngsters possession if the enterprise pursuits them.
Alajian: A enterprise turns into generational when operators are separated from homeowners. My youngsters who change into operators will probably be handled like executives and compensated nicely in the event that they carry out. However homeowners have a separate mentality, whether or not working the enterprise or not. That’s the way in which to increase it to the third or fourth era.
However the bottom line is to offer youngsters the choice to be operators, homeowners, or each. Don’t drive one or the opposite.
My aim was reaching generational wealth. However no extra. My wealth isn’t cash. True wealth is that my youngsters’ youngsters 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 era 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.
