There are many well-known advantages to owning a family business: Costs and expenditures are generally low compared to large companies. The ability to plan alongside future leadership gives family businesses a leg up on longevity. And there’s a level of commitment from family that’s hard to find in average team members.
But we also see family businesses excelling in exciting ways that aren’t often talked about. Here are a few advantages of family businesses you may not have thought about.
What are the unexpected advantages of family business?
Speed of Decision-Making
A family is a natural team. When you go into business with relatives, your leadership already knows how to communicate effectively. Afterall, they’ve been practicing together their whole lives. There’s a level of lasting trust, understanding, and flexibility in place from day one. This familiarity means family business members can easily discuss issues—and can quickly act on new plans. Fewer workplace politics means fewer hoops to jump through.
A Culture of Authenticity = Brilliant Business Ideas!
Family businesses can achieve levels of authenticity and trust that big businesses only dream of. This leads the way to faster professional growth and powerful staff development.
Usually, there’s a level of trust between family members that’s hard to find in other teams. This is one of the most powerful hidden advantages of family business. Because trust is a given, there’s no fear that sharing feedback or bringing up a big idea will be harmful to workplace relationships. This means leadership can talk and disagree freely. Because leadership models this trust for staff members and employees, everyone in the workspace enjoys more freedom of authenticity. Employees are more likely to openly share thoughts and feedback, which can lead to brilliant business ideas!
A Multi-Role Approach Provides a Leg Up on the Competition
Flexibility and versatility are another major advantage of family business. Family members are often willing to take on diverse roles and bigger workloads to make sure that the company succeeds. This level of commitment drives continued success, enrichment, and a better understanding of the industry. Family members and employees working in multiple areas of the business develop a better sense of the industry and gain new skills. They can help the family form better ideas for future products, services, and business development plans.
The Small but Mighty Family Business
Every day at USF Gellert Family Resource Center, we see small and family run businesses succeeding in new and surprising ways. Big businesses think they run the world, but when it comes to decision making, company culture, and flexibility, a family business can run circles around a big company. When you use the skill sets unique to a family business to your advantage, you can earn loyal customers that will choose you over the big names every time.