Family Owned-Business: 5 Benefits of Working with Family
As of 2019, 19% of small businesses in the United States are family-owned. As the number of small, family-owned businesses grows, it would be beneficial for all corporations and businesses to consider and understand the benefits of working for this type of business to increase the appeal of their own business. Here are five characteristics of family-owned businesses that could help your business to grow!
1. Unique Perspectives Coming from Multiple Generations
Families span multiple generations and benefit from a variety of perspectives among different age groups. Despite older generations generally being the leaders and having most experience in a family-owned business, the younger generation still has much to offer. At a young age, family members are introduced into the business world and gain their own experience which sets the foundation for future opportunities they will have in the business. With a basis of knowledge about the business and recent education, the younger generation present new ideas and viewpoints to the company that can help in it’s growth and change overtime. Valuing multiple generations in a business environment ensures the assets of both experience, and new approaches and ideas.
2. Family Values Incorporated into the Work Environment
In a family work environment, family values and morals are often emphasized and expected to be practiced by all employees. These values include respect for all employees, integrity, trust, and hard work. Leaders of a family-owned business have more than the company at stake with the decisions they make; they also must consider the welfare of the family and how business functions affect each family member. So, these family values must become common among all for the benefit of the business and the family. Incorporating values like these can improve the work environment of all companies.
3. Personal Commitment to Success of Business and Employees
Family members are concerned for the welfare of one another. They desire the success of one another. This desire adds an additional level of personal commitment to the success of not only the business as a whole, but of each individual employee. In fact, if employees can be successful, it is more likely that a company as a whole will also be successful. Company leaders that show a commitment towards the success of their employees will experience an increase of loyalty toward the business from workers, and will create a more positive and encouraging work environment.
4. Long-term Stability
Once a family-owned company has its footing, the likelihood of long-term stability for the company is very high because the business is being built up for future generations, and with their success in mind. Making decisions in the here-and-now effects the future, and family members are very conscious of the future of the business if they know it has the potential to affect their future generations either very positively or very negatively. The loyalty that comes from family member workers also provides much stability for a family-owned business.
5. Focus on Relationships
An emphasis on relationships is important for family-owned businesses. Prioritizing strong relationships within a company can help all businesses focus on other important business practices. Employees of family-owned businesses must also practice conflict resolution frequently so that they can work effectively with one another, despite differences in opinion both inside and outside of a work environment. Conflict resolution is an important skill for anyone striving to be successful in the business world.
All companies can learn much from the practices of family-owned businesses. It is worthwhile to consider the priorities of this kind of business and seek to incorporate what you find most important into your own business.
Authored by Lauren Woodbury