A family business is a different breed. They can range from the mom and pop size to international blockbusters! I’ve worked in many a mom and pop family business (mostly Pops) and have never had the experience of working for a non-family owned business. Well, except for the time I was a dishwasher at college, but I don’t think that counts. Also, when I taught Special Education for a small school, that wasn’t technically a family owned business, but we sure acted like it was.
What does count are the similarities of a family owned business. There was a great article written by the Harvard Business Review in 2012 that reported on some interesting comparison points between a family and non-family owned business. (1)
- Family businesses account for 30% of the companies with sales in excess of a billion dollars
- Their focus is more on their resilience in harder economic times rather than performance
- They are more frugal in their surroundings and capital expenditures
- Rather than have short-term plans, a family business will analyze 10 years and out to build for the long-term
- They are more likely to be international
- Family businesses acquire smaller businesses, concentrating on maintaining the culture
Wendy Yuengling Baker gave a great interview for Forbes Family Business section revealing her initial plans to stay out of her family’s business. Until, that is, she read an article about her family’s brewery from ten years before. After working in other companies to gain experience, she came back to the family business to contribute to the growth and be a part of its unique story. Yuengling is the oldest brewery in America and although it has been around since the 1800s, it still only accounts for 1% of the beer industry. Forbes has its own section of stories about family owned businesses. Amazing and inspiring tales of generation after generation making a mark of excellence on their family legacy.
I recently had the pleasure of meeting a new client whose father had started a commercial painting business and now the daughter and her partner are taking it to new heights. We reminisced about working for our fathers, the allegiance, the legacy and shared the amazement of how so many family businesses grew and flourished from the ground up. Michelle called upon me to help grow her bottom line. We talked about stepping up the automation and building on the success that she has put her heart and soul into. And for what? Her son is out in the field now, but their long-range plan will be for him to work his way up. I hope to help them make a difference and look forward to watching the growth. Ultimately, Michelle will make it happen for her son. In other words, family first.
(1) Harvard Business Review, November 2012
- Nicolas Kachaner
- George Stalk, Jr.
- Alain Bloch
