Focus on Family Business

6 April 2022 - Article by Family Business Futures

We often see family businesses struggle with whether or not to promote themselves as a family business. Sometimes they feel it's not right for their sector, size or the image they wish to portray to customers and suppliers. Family businesses are sometimes seen as small (tell that to Canon!), traditional rather than cutting edge, risk averse as they are in business for the long-term. It has an impact on recruitment too - as control passes from one generation to the next rather than recruiting the best and the brightest leaders.

It's not just common perception, it's reinforced by film and tv too, where family business is often linked to intrigue and power struggles. 'Succession', HBO's drama is a prime example, being billed as a 'Family Business Battle Royale'.

Thanks to the above, many dismiss or fail to fully appreciate the true strengths of family businesses. However, many of the strategies utilised can truly benefit other businesses. 

Playing the long game

Long term thinking is often cited as an essential corporate goal, but due to the structure of a corporate this is often overshadowed by a focus on quarterly earnings and annual results. Even in sectors where products can take years to develop and test, so the long-term strategy is essential, this can be challenged by shareholders and investors. We're not suggesting that in a family business the desire to deliver isn't there, but with a solidly structure and established commitment to delivering results for the next generation and not just the current project, any challenges are far more likely to fail.

Streamline decision-making

Corporate structures can be complex and decision taking a lengthy and convoluted process. In a family business, it always seems so much easier - you know who's in charge and everyone involved in the decision making process will be completely aware of what's going on, who's involved and where the buck stops. There's no need to get people up to speed as it's probably been discussed around the dinner table and with years or decades of history, most family members will know the answer before they really have to think about it. In some cases, the business is who you are, you are the business.

Corporates can't easily replicate this unless they have a very close senior leadership team that have been integrated into the business for many years and understand every aspect of it. But if they invest in this process so all senior team members fully understand and appreciate the factors that affect the business and its people, they can work to streamline decision-making.

Focus on your reputation

In a non-family business your name may not be above the door - but you can still act like it is! Your company’s reputation follows you everywhere and in today's modern world of instant social media posts and online reviews, it's more important than ever. Family businesses have been integrated within their local community and business community for generations, but even for new businesses you need the support of your local community and wider customer base to ensure your business thrives and flourishes.

Engage with your customers, and suppliers too, to build those relationships that will be of mutual benefit both now and in the future. Understand their needs and respond to them, take positive action to reinforce your commitment to quality and integrity, to treating your customers and employees fairly, and make a positive difference.

Treat employees well

Through the Midlands Family Business Awards we have seen multiple generations not only owning and running the business, but working within it too. There are usually many families within a family business and that brings loyalty, commitment and understanding which supports the areas we have highlighted above. How you treat your employees can play a vital role in the success of any businessn and like family businesses, they should be a top priority.

The culture of the business and the family that owns it are usually closely aligned and when decisions are made, they often reflect the needs of all their people. Family businesses focus on building a strong team that will support them through the hard times and strengthen their reputation with the community and customers for the future - they are a vital part of business success and this same approach can be applied to any business.