When you think of the kitchen table, what comes to mind is a cozy evening with your family having a sumptuous dinner or not, depending on who cooked the meal. But many corporations have started from the comfort of a family kitchen table and have grown to worldwide success. The first business ever owned, the business of tending and caring for the world, was given to a family. You could say family-owned businesses started from the foundations of the world.
According to Johnson & Johnson; Cornell College of Business, 35% of the Fortune 500 companies are family-controlled businesses. They make up 57% of the US GDP, employ 63% of the workforce, and are responsible for 78% of new job creation.
We may think of a few companies that originated at the family table and are now well-known. Milton S. Hershey established the Hershey Company in the 19th century from his home table, and today everyone is familiar with Hershey’s Kisses. When Albert and Frances Lundberg started growing rice in California in 1937, the Lundberg Family Farms known for its rice was born. They are well-known today for their organic rice goods. Established by the Johnson brothers, Robert and James Wood Johnson, as well as Edward Mead, Johnson, Johnson & Johnson is a worldwide pharmaceutical and healthcare corporation that started out manufacturing sterile surgical dressings and has since expanded to provide a vast array of healthcare products. One of the largest family-owned companies is Mars Inc. Frank C. Mars began producing hand-dipped chocolates in his home, and the company has grown into a multinational corporation that produces popular brands like M&Ms, Snickers and other products. These firms were founded by families and some of them still have family members serving on their boards of directors. This list is by no means exhaustive.
You could say family-owned businesses started from the foundations of the world.
In the modern business environment, there is an increasing acknowledgment of the exceptional benefits that family businesses offer. Whether they are small enterprises just starting out or major corporations, family-owned businesses possess a unique advantage that distinguishes them from their rivals. This article will investigate the different elements that contribute to the advantage of family businesses in the business realm and examine why these enterprises tend to prosper. Additionally, we will address the obstacles that come with managing a family business and offer valuable perspectives on how to overcome them.
Strong Bonds and Trust
One of the biggest advantages of a family business is the strong bonds and trust that exist between family members. This trust and understanding can lead to better communication and decision-making, as well as a shared vision for the business. This can be especially beneficial in times of crisis or when making important business decisions.
Strong Values and Culture
Family businesses often have a strong set of values that are deeply ingrained in their operations. These values create a unique culture that fosters loyalty and commitment among employees. The strong culture of family businesses helps to attract and retain top talent. Growing up in a family business often means being exposed to the values and work ethic of the business from a young age. This can create a strong sense of commitment and dedication to the business, as well as a shared understanding of the company’s values and goals. This can lead to a more cohesive and motivated team, which can ultimately lead to business success.
Flexibility and Adaptability
Family businesses often have the advantage of being more flexible and adaptable compared to larger corporations. This is because family members are often more willing to take on different roles and responsibilities within the business and can easily adjust to changing market conditions. This flexibility can give family businesses a competitive edge and allow them to quickly respond to challenges and opportunities.
Long-Term Perspective (Legacy Building)
Family businesses are known for their long-term perspective and focus on sustainability. They prioritize building a legacy for future generations rather than pursuing short-term gains. This long-term mindset allows family businesses to weather economic downturns and make strategic decisions that benefit the company in the long run.
Unlike many corporations that are focused on short-term profits, family businesses often have a long-term perspective. This is because they are building a legacy for future generations and are invested in the long-term success of the business. This can lead to more sustainable and responsible business practices, which can ultimately benefit the company’s reputation and bottom line. Part of what the Business Biogenetics® program focuses on is helping people who have a mind to build legacies find their original intent, thereby putting them on the right path from the inception of the business venture.
Leveraging the Family Advantage
As the saying goes, and I quote; “blood is thicker than water”. Family businesses can use this to their advantage by leveraging their strong bonds and shared values to build a successful business. This can be done by involving family members in decision-making, creating a clear succession plan, and fostering open communication and trust within the business.
Succession Planning
Succession planning is a critical aspect of running a family business. It involves identifying and preparing the next generation of leaders to take over the business. Effective succession planning ensures a smooth transition and minimizes disruptions to the business.
Building a legacy for future generations is invested in the long-term success of the business.
Balancing Family Dynamics and Business Decisions
Family dynamics can sometimes complicate business decisions. It is important to establish clear roles and responsibilities within the family and the business. Open and honest communication is key to resolving conflicts and making decisions that are in the best interest of the business.
Professionalizing the Business
As family businesses grow, it becomes necessary to professionalize their operations. This involves implementing formal processes and structures to ensure efficiency and accountability. Professionalizing the business helps to attract external talent and positions the company for long-term success.
While we have been concentrating on the benefits, one of the main drawbacks is that most family businesses do not survive to be passed down to the third generation, a fact that is well-known around the world. Many businesses fail to survive into the third generation because most families either do not involve their children in the business‘s development or their children have no interest in the main operation, which leads to the business’s demise.
One such factor is that some families are not able to adapt to the changing times. A great deal of family-run companies has failed over the years because they were unable to adapt to change and, as a result, were unable to provide their customers with what they truly want.
Conclusion
The family unit is the technology the creator used to start businesses on the face of the earth. Every family has its own unique sound that it brings to the earth. It is the sound and frequency that the creator of the universe knew the world needed. So every family-owned business brings with it its own unique and needed contribution to the growth and fostering of the earth’s economy. Without that sound being released, the earth will not thrive as it should, and all the lives that need to be affected will not have the joy of the impact that business will bring to their lives. Family-owned businesses have a very key role to play in the economy of the earth, and we hope to see many more brilliant, wonderful families release the technology that is ingrained in the genetics of their family to the world around them.
So every family-owned business brings with it its own unique and needed contribution to the growth and fostering of the earth’s economy.
Business Biogenetics® by Brandgelize helps individuals and families who are interested in starting businesses explore the different aspects of starting, building and maintaining a strong business presence in this age that we are in.
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