In 1962, Alto Aladian arrived in the United States after fleeing Egypt and the shoe manufacturing industry. He became a milkman in Los Angeles, then a ceramic tile installer, then a tile maker. That was in 1966.
Fast forward to 2024 and the company ARTO is a global supplier of handcrafted ceramic, porcelain and concrete products. Armen Aragyan, the founder’s son, is now co-owner of the business.
He and I recently discussed the challenges and rewards of a multigenerational family-owned company. The audio of our entire conversation is below. The transcript has been edited for length and clarity.
Eric Bandholz: What is your occupation?
Armen Arazian: I am a co-owner of a company called ARTO. We create handmade ceramic and concrete tiles that are rustic and elegant. We manufacture in California and sell online and in our Los Angeles showroom, across the country, and around the world.
My father, Arto Alajan, started the business. He and my mother had a factory in Egypt. They were making leather shoes there, but the government took away their business. So in 1962 they came to the United States. My father was a milkman in the morning and went to school to be an airplane mechanic at night.
Eventually he meets a woman who is a potter. She performed mission repair work. Along the Milk Route, her father would take ceramic bricks to restaurants and moms in El Segundo and Santa Monica, returning on weekends to install them. That’s how he started in 1966. His first product was clay brick.
My brother Balujan and I started installing from an early age. My parents divorced when I was 10 years old, and I became estranged from my father. He fired me 5 times and I quit 5 times. We discussed business.
After that, we made peace and grew. His father called me and said, “Let’s think about it.” And so we did. He respected me and I respected him. Before he passed away, we were partners and friends.
My brother is the owner. I’m learning how to be a CEO. I was always a partner.My brother is a full partner and owner and we discuss strategy.
He has one child. I have eight. We are thinking about the next generation. It’s important to take control of your own destiny, and control your income and freedom. He wants that for his child. I want him for my children.
All we can do is provide opportunities for our children. It cannot be forced. A multigenerational business is a family affair.
Bandholz: Is your child interested in the business?
Arazi people: yes. I let my children work in the business from an early age. I’m a salesman. We homeschooled as we traveled around the country in our van meeting clients. The children would come in, shake the person’s hand, and say, “Hello, my name is Adam,” or “My name is Sarah.” I mean, they’ve all been in business. They love business. But I forced them all to retire and work for someone else.
They have since returned. They all want a role in the company. I would argue that they come to work early and leave late, the old-fashioned way of working. And find your place. I want my children to eventually become owners. They don’t have to be operators.
Bandholz: If I’m interested in this business, I’m going to give ownership to my kids.
Arazi people: When managers are separated from owners, businesses become intergenerational. My children who became operators are treated like executives and paid well if they perform well.However, the owner separate mind, whether you’re working on a business or not. That’s how we expand to the third and fourth generations.
But the key is to give kids the option to be operators, owners, or both. Don’t force either.
my goal was to achieve intergenerational wealth. But no more. My wealth is not money. True richness is that my children’s children know and love each other. Money is a tool to maintain the family. Wealth is not actual cash. Freedom comes from having capital in your pocket, so it’s the experience and the ability to survive the next generation.
Bandholz: Where can I buy tiles and bricks?
Arazi people: 300 stores in the US or Arto.com. our instagram is @artobrick.I’m riding ~ linkedin.
