Family Business: The Treasure to Keep

How to keep the treasure in the family business?

treasure in family business

Photo by cottonbro studio

Growing a family company might provide unique challenges that other small firms don’t face. Family businesses are the foundation of several economies and can be found everywhere. Many of the world’s largest and most recognizable companies are also family-owned. It’s always challenging to grow your family-owned business globally, whether employing a new employee, developing a new product, establishing a new location, or taking out a loan to buy fancy new machinery. According to the European Family Firms Organization, around 60 percent to 90 percent of all European businesses are owned by families. Furthermore, family businesses provide 40 percent to 50 percent of all European private sector jobs.

When people think of family-owned businesses, they often picture little shops operated by a single parent. Yet, many of the world’s largest corporations, such as Wal-Mart, BMW, Tyson, and Ford, are run by generations of one family. Even though family-owned companies are often cited as key contributors to economic growth, research shows that only 30% survive into the second generation, 12% survive into the third, and only 3% survive into the fourth generation. Is there a unique formula for making a business run well in the family? Here are some tips to help your family business thrive both locally and globally. 

Incorporate careful planning into your expansion strategy



A company’s current operations must be in satisfactory condition before any growth plans can be put into action. Every developmental phase must be integrated into a broader strategy. Expanding your company into other countries like New Zealand, Canada, Singapore, Denmark, etc., will help you reach a wider global audience and tap into untapped markets. However, Singapore has a long history of being regarded as one of the world’s most incredible locations to set up a business. There are several advantages to Singapore company registration, such as tax breaks, legal protection from government interference, faster business expansion, and full ownership of the firm’s shares.

Keep family And Business Culture In Mind



Owners of family-run businesses should always maintain sight of the company’s mission and their own family’s core beliefs. Customers who were attracted to your firm because of its familial sense may feel uneasy about the changes that occur with expansion. Be sure to keep them updated on what’s happening and reassure them that they won’t have to give up the sense of security they’ve come to rely on.

Organize your family business by establishing ground rules



You’ll need to think about things like staffing and succession planning, product development, supply chain management, and technological infrastructure in the early days of your business operations. Family dynamics have their own set of challenges that you may need to address. Therefore, it’s essential to establish guidelines for your family business to improve the chance of a smooth operation.

Maintain a standard of equality in all interactions



Regarding morale, it’s crucial to treat your family member equally like any other employee, no matter how close they are to you. Employees, whether or not they are connected to the boss, value fair treatment. Disappointment in one’s motivation is natural if one sees that one’s own activities are being carefully monitored but others are not.

Be mindful about who you bring on board



It’s fantastic to onboard any of your family members. Still, you shouldn’t put that ahead of the company’s best interests by excluding outsiders who may contribute to its success and growth. Sometimes what you need is a look at things from the outside. Consequently, it’s common practice to boost output by hiring more workers outside your family.

Don’t mix up your personal and professional life



When work and family life overlap, it’s common for work to dominate conversations during family gatherings. Employees who are not members of your family but still value their position at your company will feel ignored. You should make it a habit to leave work chat for the office and bring home the family talk.

The Bottom Line

Due to their inherent flexibility, family businesses believe they have an edge in today’s volatile and competitive business environment. Having a family business may be a great way to spend time together and create lasting memories as a family. Such companies have the potential to generate wealth, open doors of opportunity, and leave a long-term impact.

Leave a Reply