Unconditional Love Lets Family Businesses Disagree, Fight, Grow and Prosper

Westporter Bill Mitchell and son Scott talked to the Y’s Men of Westport-Weston on Thursday on “how to be successful in a multi-generational business.”

Bill started, noting that only eight percent of family businesses succeed into the third generation.

Mitchell’s has. Ed Mitchell started in 1958 with “three men’s suits, a coffee pot and a dream” in an 800 square foot store where Peoples’ United Bank now stands, on Post Road East and Compo South. His sons and grandchildren have grown the business to five stores selling high-end men’s and women’s clothing and accessories – in Westport, Greenwich, Huntington, Long Island and in San Francisco and Palo Alto.

They are not a “rule based company” Bill Mitchell said. But they do follow two rules. First, every family member must work for another business for five years before joining the family business. Second, no family member will displace a non-family executive, nor will a job be created. The new member must “bring a portfolio” to show they’ve succeeded.

Scott said his grandfather told him “make your mistakes working for someone else.”

Bill was on his way to Procter & Gamble when his father recruited him. He looked at the financials and told his father “Pop, this business is worthless.” “I’m going to sell it.” “Who’ll buy it?” was the rejoinder.

So Bill offered him one year - 46 years ago. Bill, and brother Jack who joined a few years later, discovered they enjoyed working with Mom and Dad. “He could be tough,” Bill said. Mother Norma helped on the floor and kept the books, while Bill’s grandmother was their first tailor.

Unconditional love is the glue that continues to bind the now almost twelve family members active in the business. In weekly family meetings they disagree, they fight. But “when we leave the meeting we all sing the same tune, we send the same united message to our team” the older Mitchell said.

Successful they’ve been, but not immune from the economy. Bill noted that when the market tanked three years ago 40% of their revenues stopped coming in the door. On the other hand, a weak economy offers expansion opportunities – none of which Bill or Scott would talk about.

They believe that a family member must manage each store. Their California acquisition, Bill noted, stalled until Scott’s cousin Tyler said he would move to the Bay Area.

And when they move into the store’s community, they join the community. Ed started what is now the tradition of generosity, as anyone who has ever raised money for a charity or a cause in (and near) Westport knows.

Scott lives in Greenwich, his cousin Chris in Huntington. They, and Tyler in California, carry on what their grandfather started. They support local charities, they serve on community boards and they often host fund raisers in their luxurious stores.

Don’t know Mitchell’s? Learn more here: http://mitchellstores.com/.