Leaving an Inheritance: One Motivation for Building Businesses

When Chuck and Judy Kinnie started Shasta Gas Propane and Shasta Tanks (Anderson, Calif.), one of the motivating factors was their desire to build successful businesses they could later pass on to their children and grandchildren.

“Proverbs says, ‘A wise man leaves an inheritance for his children’s children,’” Chuck Kinnie explains. “I want to leave not just money, but the right attitude and work ethic. That is the inheritance I want to leave them. If you want to be successful in this country, nothing can stop you.”

Today, the Kinnies’ daughter and their son-in-law run one of the businesses, and their son and their daughter-in-law run the other business.

Shasta Gas Propane, a propane distributor, was started by Chuck and Judy in 1997. Chuck was 50 years old at the time and had spent the previous five years working in sales for a national propane retailer. When he started with that retailer, he had a background in sales, but no previous experience with propane. “I could barely even spell ‘propane,’” he says today with a laugh.

Five years later, the Kinnies started Shasta Gas with a nearly 20-year-old Ford bobtail and a service truck Chuck built himself. Chuck delivered gas and set tanks while Judy ran the office. The new company gained 600 customers in each of its first three years. By the year 2000, Shasta Gas had 1800 rental tanks in the field.

“When I started, I was still setting tanks at 7 or 9 in the evening,” Chuck says. “As long as the sun was up, I was setting tanks. I was 50, so I no longer had kids at home and I wouldn’t be missing their ballgames or anything. For any business startup to be successful, you only have to work one-half to three-quarters of a day… Any 12 to 18 hours you want. I set the business up so that my kids don’t have to work those kinds of hours.”

Today, Shasta Gas employs 10 people and runs five delivery trucks and three service trucks. It has 5000 customers within a 35-mile radius of its location. The company services primarily residential customers, but also commercial and agricultural customers.

In 2014, the Kinnies launched Shasta Tanks, a separate corporation that refurbishes and rebuilds propane tanks. Currently, Shasta Tanks employs 15 people and refurbishes 5000 tanks annually. It refurbishes tanks for and sells tanks to Shasta Gas, other independent propane distributors, and residential customers, and offers delivery in California, Nevada, Oregon, and Arizona. With a recent addition of equipment and expansion of shop space, it is aiming to refurbish 8000 tanks per year.

“I got into the refurbishing business because I saw a lot of tanks in companies’ backyards,” Chuck says. “Other propane businesses concentrate on setting tanks and pumping gas. They hire seasonal drivers and don’t have the staff to grind and repaint old tanks. We can do it cheaper and better. We use a two-part polyurethane paint and the final result is an almost automotive-quality paint job on the tanks.”

Shasta Gas started becoming even more of a family business early on. The company’s first employee, who joined at the beginning of its second year of operation, was the Kinnies’ daughter Karen Wehunt.

“At first, it was just my wife and I,” Chuck says. “Then, at the end of the first year, we needed a driver. My daughter earned her Commercial Driver License and passed the HazMat test with a 100% score. Today she is the vice president and office manager and, informally, the chief financial officer–meaning she handles the checkbook. She has been with us 20 of the 21 years.”

Karen and her husband, Jason Wehunt, now run Shasta Gas. Jason is the company’s operations manager. The Kinnies’ son and his wife run the other corporation, Shasta Tanks; Shawn Kinnie is the company’s operations manager and Brandy Kinnie is its chief financial officer.

“Shasta Gas and Shasta Tanks are separate corporations,” Chuck says. “I wanted separate businesses for my kids. When my wife and I are no longer around, they will each have a business. That was one of my motivations for starting Shasta Tanks.”

“We intend for our daughter and our son-in-law to take over Shasta Gas and our son and our daughter-in-law to take over Shasta Tanks,” he adds. “There are no plans yet, but that is our intent. My wife is retired now but I am happily employed; I enjoy coming in to work.”

Whenever the members of the second generation do take over the businesses, they will be well prepared.

“The next generation is already here in the office running things,” Chuck says. “Judy and I recently took a six-month vacation–and the business was still here when we got back!”

“My daughter has been doing this 20 years,” he adds. “I gave her control of the checkbook, and I don’t check up on it. I tell my children that this is their inheritance, so they had better take care of it. My wife and I are the sole stockholders, so our children can’t sell the businesses and buy airplanes or anything like that. I pay them more than they would earn anywhere else here in Shasta County, so they know they need to take care of these businesses. My son has worked in a large construction firm and run union workers, so he is a skilled manager. My daughter-in-law, like my daughter, is good with a checkbook, and my son-in-law has managed many employees in previous jobs. I am confident that they all have the skills to own and operate these businesses someday.”

“They have learned on the job; none of them has gone to college. I am here as a backup, but I let them run things. I do make the major financial decisions, but even then I allow them to observe and give some input.”

The Kinnies also have eight grandchildren and, Chuck says, “I would like to see the businesses go to a third generation.”

The home pages of the websites of both Shasta Gas and Shasta Tanks prominently promote the fact that the companies are family-owned and -operated. This is a message that resonates with customers and potential customers, especially in a rural area like Shasta County.

“Even when we first started, ‘family-owned and -operated’ was at the top of all our advertising,” Chuck says. “Today, it says a lot to our customers that the next generation is here in the office running things.”

“Our motto is ‘R Customers R Warm Friends,’’’ he adds. “That is how we take care of our customers; we treat them like family and we go out of our way to take care of them. That is our reputation and that is the reputation we will maintain. Our phones ring because our neighbors recommend us to their neighbors.”

“We try to answer the phone within two rings. We are talking to our neighbors. At least in Shasta County, that is what people want — to talk to neighbors. We also offer 24-hour on-call and weekend service.”

Shasta Gas and Shasta Tanks also assist other local businesses as well as local organizations.

“We are big on supporting local organizations,” Chuck says. “Little League, football, Future Farmers of America, Sober Grad Night — every one of those organizations, we support. Family businesses need to be supporting local organizations like that. I think most do, but I want to emphasize that.”

“We also buy local whenever we can, if it is available at all,” he adds. “We constantly network with other local businesses. On our website, you can print out coupons for other local businesses.”

Shasta Gas and Shasta Tanks also support their neighbors in another way. In 2015, the two companies were selected as a Small Business Veteran’s Employer of the Year. Presented by the California Employer Advisory Council and the California Employment Development Department, this award recognizes employers that go the extra mile to hire, retain, and promote veterans while providing training and benefits. At the time, over 80% of the companies’ employees were veterans. Chuck himself served in Vietnam.

Chuck Kinnie invites anyone who has questions about running a family business to contact him. He says he would be happy to talk online or over the phone. You can reach him at

‘; . —Steve Relyea