Bud Farrey of Farrey’s Lighting, Bath, Kitchen, Hardware On 5 Things You Need To Run A Highly Successful Family Business
An Interview With Jason Hartman
Running a business that has been around for 100 years is a testament to resilience, adaptability, and a steadfast commitment to excellence. It’s about embracing change, staying attuned to customer needs, and upholding values that withstand the test of time, along with a strong team of associates that have, over the years, delivered on our brand promise. The journey of a centennial business reflects not just longevity but a legacy built on enduring principles and a dedication to meeting and exceeding expectations.
As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Bud Farrey.
Farrey’s was established in 1924 in Miami Beach, Florida as a small general store. Founded by John and Emily Farrey, the general store sold hardware, linens, lights, china, fishing gear and other home products. Today, the fourth generation of the Farrey family continues its legacy of service with the largest product selection and in-stock inventory of its kind in South Florida. With more than 25,000 in stock SKUs and two 30,000-square-foot showrooms — one in North Miami, built in 1980, and one in Coconut Grove, built in 2002 — the company has evolved to serve South Florida’s growing demand for luxury products. Bud Farrey (Chairman and CEO) has continued to develop the business over the last three decades.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?
I grew up in our family business, and although I briefly considered architecture or engineering while in college, the opportunity and challenge of a family business drew me back to Farrey’s.
Can you tell us a bit about your family business and your role in it?
I have served in so many roles at Farrey’s! At age twelve, I cleaned shelves in the store for extra allowance, and by age 16, I worked after school stocking shelves and making small deliveries in my car. I worked in the warehouse during my college years, and by 1962, I was a warehouse manager. In 1964, I became a commission salesman, and in 1978, I was appointed President.
Can you share the most interesting story that happened to you since you began this career?
The Walt Disney Company entrusted us with a unique project: supplying door hardware for the entirety of Epcot. Our involvement went beyond a typical vendor-contractor relationship. Disney collaborated directly with us, recognizing our expertise in handling the logistics of supply chain and delivery and providing valuable insights on sourcing the ideal hardware. Every door lock across the World Showcase was meticulously chosen to complement the design of each country or pavilion theme. We essentially became the bridge between Disney’s vision and the practical aspects of sourcing hardware globally. This collaboration allowed us to bring the World Showcase to life by ensuring that every piece of hardware, although US-manufactured, matched the thematic aesthetics of the different countries and boasted the best internal mechanics for durability and functionality.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
In the early 1970s, I flew with our alarm division manager to a meeting in NYC for a meeting with the President of a major company we wanted to represent. During the meeting, I leaned too far back in my chair and tipped over backward to the floor. While the President sprang to help me, my manager simply said, “Oh, he is fine!” and continued the presentation, ignoring this embarrassing moment. I learned that one can recover from embarrassment and that a trusted colleague can save the day. By the way, we did get the distributorship.
What do you think makes your company stand out? Can you share a story?
At Farrey’s, we pride ourselves on providing excellent customer service. When I was 20 years old and a warehouse manager in 1962, a commitment was made to one of our largest customers for a delivery that had to be made on a certain day. As that day went on, we were swamped with other urgent delivery needs. By late afternoon, the customer was calling and demanding delivery of what he needed for that evening’s installation. So I loaded a large truck by myself, drove to their job site after hours, and unloaded what they needed in time for their work. The project manager asked me to thank Bud Farrey for making this happen. I introduced myself, and we became fast friends, leading to a great working relationship. This level of service is what we strive to provide to this day.
Are you working on any exciting new projects now? How do you think that will help people?
We are always looking to provide value to our customers, which comes in the form of inspiring and guiding them to bring their projects to fruition. Over the last year, we have worked to update our showrooms with the latest lighting, bath, kitchen, and hardware from the world’s leading vendors, ensuring they are displayed so that our customers can see what their projects can look like. We couple this with the continuous training of our consultants to advise our customers, guiding them to the best possible outcomes for their projects. The future is bright, and Farrey’s is lighting the way.
None of us can achieve success without some help along the way. Is there a particular person who you are grateful for who helped get you to where you are? Can you share a story about that?
My father, Francis Farrey, was an excellent mentor because he gave me opportunities and allowed me to progress at any level I chose. When I made mistakes, we discussed them calmly, and after my successes, he congratulated me. I observed his integrity in running the business and the respect in which he was held by our employees and the community.
How have you used your success to bring goodness to the world?
We bring goodness to our community in two distinct ways. We work to inspire and drive the charge to bring our customer’s projects to life. We also participate in many philanthropic opportunities throughout South Florida. I personally sit on the board of two non-profits — Catholic Health Services and Marian Center School and Services. I was also a very active member of the Miami Country Day School Board of Trustees for 32 years, chairing the Building Committee and supervising the construction of several buildings on campus. I also serve on community boards, most recently North Bay Village’s Planning and Zoning board.
In your opinion or experience, what are the unique advantages that family-owned businesses have? 11. What are the unique drawbacks or blind spots that family-owned businesses have? 12. What are some of the common mistakes you have seen family businesses make? What would you recommend avoiding those errors?
Defining a family business, from my perspective, goes beyond the conventional understanding of a corporate entity. It’s about a profound connection between family members and the business, creating a unique environment where values and traditions are woven into the very fabric of our professional pursuits. The generations of family preceding me established our company’s core values, principles that I deeply respect and aspire to continue as we navigate the path forward.
In my experience, family-owned businesses boast several advantages. The inherent trust and commitment among family members foster a level of cohesion that is often unmatched. There’s a collective understanding of the business’s history and a shared dedication to upholding its principles. The long-term perspective that families bring to the table aligns with a vision of sustainable growth and stability, steering away from the allure of quick wins. The personal investment and passion that family members inject into the business act as a driving force for success, creating a unique and deeply rooted entrepreneurial spirit. Yet, acknowledging the strengths of family businesses doesn’t negate the challenges. Emotional entanglements can sometimes seep into decision-making, presenting a potential drawback. Transitioning leadership from generation to generation is a complex process that demands meticulous planning to ensure a seamless handover and continued success.
Reflecting on common mistakes observed in family businesses, I’ve noticed a recurrent theme of complacency and resistance to change. It can be all too easy to coast along doing the same thing in the same way. However, my experience has taught me that it takes effort and courage to seek new opportunities and meet new challenges. Embracing new prospects and staying open to innovation is paramount for sustained growth.
I strongly recommend having the “next generation” of family members work outside the family business before joining. This practice injects fresh perspectives and valuable insights, enabling them to bring unique value to the company. It’s a strategy that ensures a diverse skill set and a broader outlook, contributing to the adaptability and resilience of the business. My journey in a family business has taught me that success lies in recognizing and leveraging the unique strengths of familial bonds while remaining vigilant to the challenges and embracing change for continued growth and prosperity.
What advice would you give to other CEOs or founders of family businesses to help their employees thrive?
Notice the talent within your staff and make opportunities available to all to grow and achieve their own success. Encourage ideas and suggestions for improvement from all associates, from warehouse to sales to support staff. An example is our current president, Luis Costa, who joined our firm at the age of 18 in 1978 as warehouse staff. Through the years, he, like me, served in several positions and acquired the experience and knowledge that has led him to lead the company.
How do you define “Leadership”? Can you explain what you mean with a story or example?
As CEO, I see my role as “leading the ship” and projecting calm assurance even during challenges. Earlier in my career, I made big decisions — opening, purchasing, or selling divisions within our business — opening or relocating offices and showrooms. Fortunately, I made what have turned out to be excellent decisions in promoting our President, Luis Costa, and our CFO, Ana Marmol. My leadership role is now to be a steady and supportive asset to them, bringing my experience to the forefront.
A pivotal moment for myself as a leader and for Farrey’s as a company occurred in the 1980s when we confronted a significant challenge. During a period of civil unrest in South Florida, our offices, showroom, and warehouse were burnt to the ground. Along with all the merchandise, all of our records were destroyed — bear in mind that there was no computer backup at that time. However, the resilient response of our associates, bolstered by robust relationships with the community, local banks, product vendors, and customers, allowed us to navigate this adversity successfully. Despite the upheaval, in a thirty-five-day period, where we worked 24 hours a day, seven days a week, we seamlessly rebuilt in a new location, preserved all jobs, and ensured no disruption to our customers’ project schedules. This challenging period became a testament to our company’s commitment, and, much like our resilient city, we emerged from the ordeal even stronger.
Here is our main question. What are the “5 Things You Need To Run A Highly Successful Family Business”? Please share a story or example for each.
Running a business that has been around for 100 years is a testament to resilience, adaptability, and a steadfast commitment to excellence. It’s about embracing change, staying attuned to customer needs, and upholding values that withstand the test of time, along with a strong team of associates that have, over the years, delivered on our brand promise. The journey of a centennial business reflects not just longevity but a legacy built on enduring principles and a dedication to meeting and exceeding expectations.
Maintaining Integrity and Values: Maintaining integrity in your actions leads to confidence among your staff, customers, and community.
Open Acknowledgment and Learning Culture: Acknowledge issues honestly in order to correct and learn. Continue to learn from various sources to achieve growth and learn new perspectives outside the familiar family business.
Embrace Learning Opportunities: Consider any learning opportunities that are available. Belonging to a peer advisory group provides a platform to support and critique each other and hear speakers on various meaningful subjects.
Proactive Adaptation to Market Conditions: This involves staying ahead of changes, anticipating trends, and swiftly adjusting strategies to meet evolving market demands, ensuring a business remains agile and competitive.
Strategic Team Building: Build a great team — as Jim Collins famously said, “Those who build great organizations make sure they have the right people on the bus and the right people in the key seats before they figure out where to drive the bus.” (Ref: https://www.jimcollins.com/concepts/first-who-then-what.html)
Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why?
Jack Stack. His book “The Great Game Of Business” taught me many valuable lessons, and even at my age, I’d love to learn more!
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be?
I am not sure that I would categorize myself as a person of great influence, but I do hope that I have set an example of giving back to the community that other companies might follow.
How can our readers further follow your work online?
You can follow all things Farrey’s on our website, farreys.com, or our social media channels.
www.farreys.com
https://www.instagram.com/Farreys
https://www.facebook.com/farreyslightingbath/
Thank you for the time you spent on this interview. We wish you only continued success.
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.
