Passing the buck.

• Author: Mattson, Sue
• Position: Family businesses in Fairbanks, Alaska

PASSING THE BUCK

IT CAN BE TOUGH. BUT IT'S ALSO terrific. Interior Alaska business owners say bringing their children into a family-owned business - and ultimately passing over control - is a difficult challenge, but full of rewards. Business owners who have moved up through that process agree.

Just as every family has its own set of unique problems, relationships and satisfying experiences, so does each family-owned business present a different story. Not all are success stories. But many are. Keys to a successful transition are a strong family relationship and good communication skills.

Usibelli Coal Mine of Healy is now in its third generation of ownership by the Usibelli family. Emil Usibelli started the business in 1943. After he was killed in a mining accident in 1964, leadership passed to his son, Joe Usibelli Sr. In 1987, he was named chairman of the board, and his son, Joe Usibelli Jr., was named president, taking over direct day-to-day operation of the business.

Joe Usibelli Jr., 31, says the smoothness of a transition in control of a family-owned business hinges on the roles of the individuals involved. "You have to have a fairly strong family relationship first. That should come first. Never let the business split up the family," he warns.

The oldest of six children, Usibelli also has worked with his siblings in the business. One brother is chief of engineering. Another brother and a sister have worked in the business from time to time. "We've used the business to help strengthen our relationships, working together day-to-day," he says.

Jim and Mary Binkley and their four children own Riverboat Discovery Cruises, offering stern-wheeler excursions on the Chena River. Jim and Mary began the business in 1953 when their oldest child was two years old. The senior Binkleys are now minority owners. Each of the four children - all adults now-owns 20 percent of the corporation, and Jim and Mary together own 20 percent. They wouldn't have it any other way.

Jim Binkley says responsibility must be coupled with authority when bringing family into the business. He explains that because he always knew his children were going to run the business someday, his philosophy was: "The sooner they have the responsibility and the authority, the better off they would be."

Skip Binkley, the oldest sibling and president of the corporation, says working in the business with his family is highly satisfying. He and his brother, Jim, are also next-door...