Read these posts before you risk everything. This post is 3 positives of owning a family business.
Our last post highlighted the massive challenges in running a successful family business. Considering those hurdles, why would anyone want to engage in such an endeavor? The truth is that, despite the minefield, there are many examples of successful family owned business and the rewards outweigh the risks. Consider these three positive attributes:
The emotional commitment from family members within a family business is often high. Members want to see the business successful for reasons beyond their personal gain. This emotional connection is far stronger than any other type of motivator. The bond pushes family members to work harder, work longer, and take more risk for the benefit of the small business operation. This is the “why” factor that so many self-declared experts talk about. The answer to why is rarely about money or personal reward. The “why” is deeply rooted in the love of family and the innate desire for multigenerational success.
We work in a world that is increasingly focused on now and short-term gains. Family business owners are focused on sustainability because they want to see their legacy survive. The success of the business is often a source of pride, social standing, and influence in the community. This relatively long-term focus often brings many benefits to customers and employees in terms of stability and improved customer service.
Improved communication is often a key advantage of a small business operated by a family. Collaboration is mandatory for sustainable success. New product development, sales performance, and talent recruitment are all improved when communication and collaboration is maximized. The results can be seen in the retention of top talent, and the consistent development of competitive products.
Considering the high failure rates of all types of small business combined with the emotionally charged challenges within family owned business, it is a wonder why anyone would undertake such an endeavor. If you ever observe the marvel that is a successful family operated business, you will understand why.
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What experiences to you have with family owned businesses? Please share your thoughts.
Family Owned Business is a series of blog posts about the exciting, rewarding, often challenging, and always unique elements of family owned small businesses. No, we are not talking about the Mafia. Family members make great partners, right? Wrong!
- Sustainability Focus
- Improved Communication