Family businesses can go to extremes: in some cases we will find some that are a clear example of success while others were a failure from the way they were planned..The advantages family businesses have are plenty and those who are able to cope with its challenges can achieve business objectives in the long term.
Advantages of the Family Business
1.Long-term planning for generations
When you are a solitary entrepreneur, it is very complicated to plan something for future generations, since the intention of every businessman is to make his brand grow over time and his services or products cover more and more space on the globe.
One of the benefits of family businesses is the fact that the first generation can lay the foundations for the next one, as committed as it will be to morality and sentiment, to execute the plans that had already been foreseen, either the same or improved, taking care of the interests of their predecessors.
Long term planning gives an internal competitive advantage to family owned business, due to the fact that decisions are taken based on the future returns. What it started as a small business, a long term plan has as an objective to convert it into a bigger business.
2.Positioning in the local market through trust in the family
It may seem a little bland, but the reality is that when we hear that the work team is a family, we gain more confidence towards it because of its traditional values.It is then much easier to reach a larger number of customers motivated by the trust that family can give.
3.Family values
When you have a company one of the most difficult points is to pass on the values that you have as owner to your employees, and many times this task is even more difficult when they have not been raised from home with the same values that led you to be in charge.
Running family businesses also means a posture of family values in the local market where it operates. One of the advantages of family businesses has to do with the values that will have the team that has been raised under the same image and beliefs.
We can highlight responsibility, commitment, respect, the need for justice, and many others that can make a company stand out from its competition thanks to the work ethic.Strong values bring business competitive advantage since there is an image that is built on them
4.Resilience in times of crisis
The commitment one has to a company that belongs to us is something that can never be compared to anything else, not even that of the most loyal employee. As they always say, the captain is the last one to jump off the ship.
In times of crisis it is common that a large part of the team decides to leave to look for better opportunities, and while the business family owners are fighting for their dreams, others simply need their payments.. Among family owned businesses, desertion becomes much more complicated, so there is a great probability of union and efforts.
5.Trust in the members of the work team
Another advantage of family businesses is that you know perfectly at least those people who occupy important positions, which makes it much simpler to trust them with their tasks and take them into account when making decisions.
Running family businesses rely on having in your team, people that either you took care and educate them, or with whom you grew up. The attitude the family members have will be the one that show how the family business will run.