Part 2 of my family’s ventures into various businesses, starting from my grandfather investing in land along the I-4 corridor between Tampa and Orlando, which led to cattle farming and orange growing. Our small family business expansion continued with the investment into an egg farm, which was a kind of co-operative that later attempted a transition into a corporation.
The family decided against trading our physical investments for shares, leading to a period of uncertainty until an employee of the co-op proposed to manage the egg farm, thereby revitalizing it.
John, representing the third generation, shares personal experiences of working at the egg farm, facing what he calls a ‘generational ceiling’, and learning invaluable lessons in innovation and process improvement from his first boss.
The story summarizes a few of the challenges and transitions faced by a small family business over generations, touching on aspects like market impacts, generational perspectives, and the significance of adaptability and innovation in sustaining and growing business ventures.
The challenges I faced, the lessons I learned, plus the subsequent training I have received is what makes me, through our business Kuder Consulting Group, a Small Family Business Specialist.
Visit our website to learn more: https://kuderconsultinggroup.com/
00:00 The Beginnings of a Diversified Family Business
00:12 Diversifying Investments: From Land to Livestock
01:18 The Egg Farm Venture: A Story of Innovation and Challenges
03:22 Working at the Egg Farm: Lessons in Hard Work and Innovation
05:33 Navigating Generational Challenges in a Family Business
09:44 The impact of the Cholesterol Controversy and the Decision to Sell
And then after the
Connie:the citrus pulp, what else?
John:So as he was doing that, he
John:built an office in Lake Alfred, and
John:as he was doing that, the looked
John:around for ways, other ways to invest.
John:And so he invested in land.
John:And bought land.
John:, along , what is now the interstate
John:four corridor between Tampa and
John:Orlando and he put it together.
John:Put pieces of land at a time.
John:As he could buy it and
John:Dad said, you know, some of it
John:was bought $25 for the acre.
John:Which is pretty cheap back then.
John:Yeah, even back then, I think.
John:So, he he'd amassed a , pretty sizable
John:piece of property and we ran cattle on it.
John:Cattle in Florida is mostly scrub.
John:, meaning they just, they,
John:they eat what they find.
John:We didn't have a feed lot.
John:The cattle were grew up to a certain
John:weight age, and then they were shipped
John:to somewhere to the Midwest where
John:they were then fattened in a feedlot.
John:And became beef cattle, but that wasn't.
John:So we did that.
John:We grew and he grew oranges.
John:And, and so, you know, my father was
John:very involved in that part of it and,
John:uh, you know, stories of him getting,
John:getting stuck out at the, in that
John:land and, and having to walk in and
John:get on the phone and call somebody to
John:come and help, and things like that.
John:Another one of the investments
John:that my grandfather made was to
John:buy a portion of a, an egg farm.
John:There was a large.
John:Facility that was.
John:Maybe sort of like a franchise.
John:They, there was one central processing
John:plant where the eggs were going to
John:be washed and packaged and sold.
John:But a lot of investors invested
John:in the actual chicken houses, the
John:land, the buildings, the cages.
Connie:Almost like a co-op.
John:Like, it was very much like a
John:co-op, but all in one big, pretty much
John:one big facility, one big acreage.
John:And the parcels were all
John:adjacent to one another.
John:And the owners of...
John:the investors in this weren't in
John:any way involved in the management,
John:, they were truly investors.
John:And the company that did that
John:processing put the chickens in there.
John:It was called contract.
John:We called it contract
John:farming later, where they.
John:We contracted, we built the
John:facility and contracted with
John:them to put the chickens in it.
John:And then, um, when they would then
John:do the caretaking feeding of the
John:chickens, collecting the eggs processing
John:and sales and give us a percentage.
John:And that worked for a while.
John:And then they, they decided to convert
John:the co-op into a, , corporation
John:with shares and they wanted all
John:those people that had invested in
John:those land and the chicken houses
John:to trade that, that physical
John:asset for shares in the, company.
John:And my grandfather declined.
John:Okay.
John:And so they said, okay, well,
John:we're not going to put chickens.
John:I don't know what timeframe, but okay.
John:Well, we're not going to put
John:chickens in your, in, back in
John:your chicken houses, chickens.
John:There's about a two, two and
John:a half year time span there.
John:And then the chickens are taken
John:out and replaced with younger ones.
John:So at some point.
John:That happened.
John:Okay.
John:And, fortunately one of the people that
John:worked in that company was, from a whole
John:other story, he was rather disgruntled.
John:I ended up working for him.
John:He was my first boss, Lloyd Jones.
John:But, , he, he came to my father
John:and said, "If you'd like, I'll be
John:glad to run your egg farm for you."
John:And so they made a deal and he
John:ran it for a bunch of years.
John:Yeah.
John:So that was my first job in the
John:company, uh, was, was working at the
John:egg farm summers, a couple of summers.
John:Um, and then I went after.
John:, I met you and when we got married.
John:We moved down and, uh, you
John:know, I interviewed with Mr.
John:Jones.
John:We were expanding.
John:We expanded the egg farm.
John:I want to say.
John:Doubled the capacity by having satellite
John:contract farms, where we had smaller
John:producers, a number of smaller producers,
John:but ultimately we were expanding.
John:And we're putting in a new machine.
John:The new egg grading machine.
John:It was state of the art.
John:And that happened to be
John:the time that I came along.
John:And so we moved, moved back to
John:Polk county and went to work.
John:And I went to work at the egg farm.
Connie:Yeah, it was always
Connie:fun to know too then.
Connie:Uh, chickens do not take off holidays.
John:They do not.
Connie:They didn't care
Connie:that I was in labor.
John:They wanted to be fed seven
John:days a week and they were twice a day.
John:I was only at the egg farm five years.
John:Okay.
John:Before we sold it to the fella who
John:had actually started that go up in
John:the beginning and said, we're not
John:putting chickens back in there.
John:So we didn't, that's funny.
John:Yeah.
John:It was funny how that came back around.
John:The.
John:The things that I learned, the lessons
John:that I learned there in terms of
John:process improvement and, , systems
John:we're just incredibly valuable to me
John:and , there are very
John:universally applicable.
John:And there was a lot of I want
John:to say country invention.
John:I don't know exactly how to define
John:it, but, he was almost, he had a
John:real fascination with building stuff.
John:Who?
John:Mr.
John:Jones.
John:Lloyd Jones.
John:He he'd love to tinker.
John:We had a, we had a shop there and he
John:loved to tinker on stuff, but he had,
John:he was an innovator and he'd had a lot
John:of years in the egg industry and feeding
John:chickens, and he'd figured out a lot of
John:stuff that didn't work and ways around it.
John:And, and he'd also, I want to say because
John:he'd worked other places and seen things
John:that didn't work, saved us from making
John:mistakes that we might've made otherwise.
Connie:So was it difficult for
Connie:you coming into, so now you're the.
Connie:third generation, and you've
Connie:got an older boss there.
Connie:Who's been.
Connie:You know, who knows the
Connie:industry, how was that work?
Connie:How did that work out for you?
Connie:Did you enjoy working for him or.
Connie:What did you learn at?
Connie:Let's go with that.
Connie:What did you learn from that situation?
John:My goodness.
John:Well, we talk about in our
John:Kuder Consulting Group.
John:We've coined the term
John:generational ceiling.
John:And I did not so much
John:experience that with my father.
John:Not as impactfully as I did with Mr.
John:Jones.
John:Because I was there at the egg farm
John:and, and I wanted to, I wanted to
John:learn and I wanted more responsibility.
John:I mean, I started out doing
John:very, very low-end menial...
John:I learned how to work really hard and.
Connie:Didn't you knock
Connie:concrete off of...?
John:It was basically,
John:like sweeping floors.
John:I was busting concrete,
John:off of , creosote poles.
John:I was, , doing various things with you
John:know, the chickens that needed doing.
John:I won't go into that.
John:The first week I spent built bending
John:wires on a wire bending jig and, and
John:we did, you know, there was repetitive
John:things that we did seasonally.
John:But it was yeah, it's dirty work
John:and, and I, I expect it to grow into.
John:To learn.
John:I wanted to learn every aspect of the
John:business and understand the planning
John:that went into planning for the chickens
John:and planning to have, more chickens
John:laying eggs, so we were at our maximum
John:production capacity during the holidays
John:where there's a lot of baking done.
John:So from.
John:Halloween through Easter.
John:Right because you've got Thanksgiving and
John:you've got Christmas, the major holidays,
John:Thanksgiving, Christmas, and Easter.
John:That's when people are
John:cooking with eggs a lot.
John:So we needed to have our
John:maximum capacity then.
John:And.
John:Chickens have a season that where
John:they're, you know, laying the heaviest.
John:And we had multiple groupings of
John:chickens, we called them flocks.
John:I think.
John:Like 25,000 each.
John:Okay.
John:Lots of chickens.
John:But that all had, that was planning
John:and timing that went into that.
John:And, and I, I wanted to learn all that and
John:I was never, I was not included in that.
John:At one point, I did have a
John:conversation with him, with Mr.
John:Jones and
John:he said, well, you'll be ready to do
John:some of this stuff, you know, after
John:you've been here 10, 15 years, cause
John:he'd been in the business 40 years,
Connie:right.
John:That was a turning point for me.
John:And, you know, psychologically,
John:because I thought.
John:No , I'm not going to be here 15 years.
John:That's where I had to have a conversation
John:with my father and My father.
John:This really gets into a whole, we need
John:to do a whole other podcast about when
John:you have, , an external or non-family
John:member manager or professional
John:manager in a family business and the
John:communication that needs to happen.
John:Because ultimately what it amounted
John:to was Lloyd Jones was afraid that
John:I was somehow going to replace him.
John:He felt threatened by my presence.
John:And my father was very clear.
John:You're not there to replace him.
John:You're here to replace me this.
John:You're just learning, you know, the
John:business through working through there and
John:you won't be staying there a long time.
John:And it was like, well, can
John:you tell him that please?
John:'cause he's really pushing,
John:you know, holding me back.
John:And.
John:Again, this is the generational ceiling.
John:I was very young and I thought,
John:I, you know, when we're 17, we
John:think we know everything by the
John:time we're in our twenties, and
John:especially after we've had a baby,
John:we realize we don't know much at all.
John:Right.
John:But, but there's still.
John:You know, Uh, a, uh, there's an energy,
John:there's a desire to grow that someone
John:in their sixties, which is what he was.
John:It doesn't have, you know, they're,
John:they're more coasting towards retirement
John:and they're more playing things, a
John:little safe and just, you know, using
John:what they've learned over the years.
John:And, and they've, they've got a rhythm.
John:Right.
Connie:And then I remember the day that
Connie:you came home and said, oh, by the way,
John:Yes.
John:Uh, So again, a long story
John:to get to that point.
John:But, uh, we, we had the opportunity to..
John:. The egg business was not a
John:profitable business at that time.
John:We were in the middle of what they
John:call, the cholesterol controversy.
John:Where doctors were telling
John:people eat , one egg a week
John:because eating the cholesterol
John:in the egg was going to kill them.
John:That is false science.
John:It's been completely debunked.
John:Debunked, but it still, you still see
John:today, , how many, 20, 30 years later?
John:You still see product , packaging that
John:says no cholesterol on it, because
John:that's how effective that campaign was.
John:And it was strictly in
John:a marketing campaign.
John:That's another rant for another day.
John:Right.
John:But we, so it was not a profitable,
John:very, very, very thin margins.
John:We unfortunately grew into a size
John:where we weren't big enough to get
John:the economy of scale that we needed to
John:have to weather those difficult times.
John:And, , it didn't make sense.
John:We really couldn't shrink.
John:We were kind of in a rock and a
John:hard place situation, and we had
John:the opportunity to sell it and , we
John:took it and, I was all for it.