Back to News
investment

What Makes This Business So Successful? We Find Out From the Founder's Kids

Kiplinger
Loading...
8 min read
1 views
0 likes
What Makes This Business So Successful? We Find Out From the Founder's Kids

Summarize this article with:

The children of Morgan Clayton, founder of Tel-Tec Security Systems in Bakersfield, California, share how their father's wisdom, life experience and caring nature have turned their family business into a locally respected powerhouse. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Over the years, I've worked with families who own businesses — represented, consulted, held nervous hands, kept family members from diving across the table at each other.In the process, I've come to know just how difficult running a family-owned business can be.Often, conflict arises when a son or daughter graduates from college with a business degree, their head filled with ideas from classes taught by professors who have never actually been in business. The kids want to go in directions the founders (Mom and Dad) see as financially dubious.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.Managing these types of conflicts can yield results that are equivalent to a shot of vitamin B-12 if — and it is a big if — the parent/founder can bring to the table wisdom and respect of and by family, friends and customers.That one person can unite family and employees, leading to a level of business success and accomplishment that can positively impact an entire community. I've seen it happen, including with the topic of today's column.

About Adviser IntelThe author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.One of the most inspiring people I know reflects those qualities in his life and the family business he founded.I was present in May 2025 when 69-year-old Morgan Clayton was awarded an honorary doctorate of Humane Letters by the president of California State University, Bakersfield, because of his decades of service to his community. (Editor's note: Mr. Beaver was also awarded an honorary doctorate, but he's too humble to mention that here.)As chairman of the board of Tel-Tec Security Systems, which he founded in 1982 and which serves more than 20,000 customers in California's Central Valley, Clayton is proof that thinking of others, including helping youths in need of direction, is of enormous value to a community — and reflects positively on a business.I sat down with his three children — daughter Tasha and sons Kevin and Tyson, whom their father described as "being essential to our growth, who we are today" — and asked them to describe what their father does that has made this family-run enterprise so successful and respected."Morgan's very DNA is rooted in finding positive solutions, sending a message that he cares," Tasha said. (As a sign of respect in the workplace, the siblings refer to their dad by his first name.)As I talked with these three siblings, it soon became obvious that their father's attitude and life philosophy would benefit family-run businesses everywhere.With an endearing smile, Tyson added, "Everyone is his friend, and one of his famous quotes is, 'People do business with people they know, like and trust.' He lives by that — making decisions with this philosophy and referring to it all the time."Kevin noted, "He doesn't accept 'no' as an answer and will do what others overlook or don't want to do. He has always been a role model for our family and employees, with qualities that open the door to success, beginning with generosity, thinking of the less fortunate in our community and asking, 'How can we address this situation? What can we do, as a company and in our individual capacities, to help?"I asked Tasha, "How does Morgan's philosophy apply to finding solutions to obstacles or challenges that come up in your business?""I have often heard him say there is no such thing as 'an obstacle,'" she said. "It is called 'an opportunity.'"Tyson observed that Morgan "doesn't hear negativity; he doesn't like it. He can't stand it. Everyone knows — family, board members and every employee — that if you have a problem that needs his help in finding a resolution and you want to discuss it with him, you've got to be open-minded and look at the issue as an opportunity."If you can't navigate in that direction, then do not waste his time. Morgan is always seeking a win-win solution and does what it takes to achieve that in an honest and ethical way."Curiosity, I learned, runs deep among Tel-Tec's management. They want to know how they are doing, especially when faced with a customer who leaves the company.When informed that a customer is at risk of departing or has actually left Tel-Tec, the company begins a process to discover if it was due to an error on its part. Employees ask, "Can we make it right?"Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.The customer's decision is respected, of course, but employees get together as a team to ask, "What did we learn from this so it will not happen again?""Everyone's voice is important," Tasha points out, adding, "We do not disregard. Rather, we bring issues to the table, and it is so comforting to know that our brand is affected by the vision people have of us."The best referrals come from our customers and from all of us understanding that our culture includes providing superior security services and giving back to the community."As I learned from his children, Morgan Clayton didn't just file corporate papers and open the doors of a security company. "He created a vehicle that provides needed security services and benefits to our community that cannot be measured in dollars alone," Kevin said.As one Tel-Tec worker told me, "We know how blessed we are to be part of all this."Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, "You and the Law." Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift." Oracle and Broadcom continued to fall, while market participants looked ahead to Tuesday's jobs report. You're off to great places! Why Dr. Seuss is the retirement guru you didn't know you needed. Understanding how lower interest rates could impact your wallet can help you determine the right financial moves to make. Oracle and Broadcom continued to fall, while market participants looked ahead to Tuesday's jobs report. Many people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time. Roth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs. A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg. Rather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes. Most people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse. Products such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital. The major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.

Read Original

Source Information

Source: Kiplinger