Superpowers In Family Business Superpowers
In many countries, family businesses are a significant part of the economy and an engine room of economic growth. They carry certain attributes that are often a mix of positives and negatives. It’s important for owners and stakeholders to understand what distinguishes them from non-family businesses, and how to leverage the positives and avoid the negatives. Here are a few to think about:
Patient Capital. Businesses that are not slaves to public markets or private equity fund exit timelines. They can have very long timeframes for their target returns, and can ride waves that might cause other businesses to have to shift dramatically or even fail. However, they can lack the urgency sometimes needed, or the drive for regular strategic renewal.
Making Quick Decisions. With a small number of decision-makers who may live in close proximity and see each other regularly, family businesses are often not bogged down by the bureaucracy of larger businesses or corporates. But they may see governance structures, independent voices and oversight as a waste of money.
Employing Family Members. Being able to tap into talent that you know and trust is great. That’s only as long as family members join the business for the right reasons, and with the right preparation, and the family has appropriate policies and mechanisms such as codes of conduct to manage conflict.
Purpose. Being part of something bigger than ourselves (family, community, organisation) is something people find very fulfilling. Whether or not you are a family member, it can be a huge motivation to join and stay, and a great reason to get up every morning.
Consider This: What are the attributes that makes your family business different to a similar business that is not family owned? Are these strengths or weaknesses? How can you use them to your advantage?
- A career in the family business: Duty or choice?
- Why is individuation important in family businesses?
- Does Your Family Business Encourage Dissent?
- Dealing with an echo chamber in family business
- Family business governance: What to know before getting started
- Why do you really own your family business?
- How To Be Both A Business And A Family: Role Challenges In A Family Business
- Create a Culture of Generosity and Communication in Your Family Business
- The 5 Cs Of Family Business Success
- For Family Businesses, Strong Governance Is The Secret To Managing Risk,
- Reinvention Lessons From A Multigenerational Billion-Dollar Family Business
- 5 Benefits of Having a Multigenerational Family Business
Here is more on reading on family business.