The businesses owned and controlled by members of the same family are known as family businesses. Any size of employees or turnover does not bind such businesses. In Indian economy family businesses are common and one of the oldest forms of organization. Like other businesses, the primary motive is to earn the profit and generate returns on investment. It might be difficult to run the family businesses successfully as communicating and working with your family member is comfortable, but at the same time, it involves challenges. To avoid any chaos; roles and responsibilities of every family member should be decided, communicated clearly and should be in writing. Including professionals in your business for expert advice is recommended. Being the ages-old family business; the policies should not be rigid so that bringing in the innovative or novel ideas is not accepted. In countries like India; where the joint family living is still in trend, the joint family businesses are no big surprise. From Grandfather to Grandson or sometimes even more than three generations are involved in the family business. These family businesses may vary as per the type of the business involved in, size of the organization, products, and services offered, employee throughput and many more factors, therefore the ways to run the successful family businesses also changes with its type. Through this write-up, an effort is made to share the tips that could be beneficial while running a family business based on its form.
- Small or Medium Sized Business:
When planning a small business or start-up; qualified staff should be involved other than the family members. You should be ready to face competition and should keep pace with changing the environment. You might struggle in attracting new investors or funds to expand the business. So the first step should be to develop brand value and create loyalty in mind of customers and investors, for this always provide consistent and excellent service.
- Vast And Successful Business:
To run the large company successfully, you need to be passionate and a risk taker. You should have a focused mindset. In the vast business, it is imperative to have a proper hierarchy and communication channel. Maintaining a formal business relationship with other partners or family members is a must. Keep a thin line between personal and legal associations. Employees/consultant should be hired from outside other than family members to get expert advice and can take non-biased decisions.
- Online And Offline Business:
In today’s era to expand the offline business, it is essential to create an online profile. In offline business, you can sell your product or build brand value within some boundaries. But when you decide to start the online store, it becomes easy to expand in new geographical area and create brand value worldwide. Your online profile or website should always be updated. Send emails to customers telling them about your site, and about your online presence. So with changing generations’, style of working should also improve. Always be ready to accept change.
- Successful And Profitable Business:
To run the successful and profitable business, you should understand employees, finance, marketing techniques, and planning. These are areas where you should focus. Get work done by professional and review it on a regular basis, i.e. always monitor job done by employees. Use market opportunities to expand your business.
- Successful Entrepreneur:
To become a successful entrepreneur you need to work smartly and passionately. It is impossible to run a business all alone, so you need to hire professionals for the tasks you are not good at. The fair and equal delegation of work needs to be done. Never be afraid of failures. Invite new ideas, have brainstorming sessions conducted regularly, and never underestimate others. It is not a one-day task to become a successful entrepreneur nor does everyone have leadership qualities inherited, consistent hard work and firm determination are required to be succeeded on this path.
These tips would have helped you to understand that handling family business is not an easy task, irrespective of type and size of business. The ultimate goal of every business enterprise is growth and profit. It is essential that every business partner in a family business should have shared vision and purpose.
These days, due to the competition you might feel the continuous pressure of growth and to overcome this pressure, it is vital that as thinking of customers is changing, the standard of living is improving working pattern should also change.
A Quick Wrap Up
Allow upcoming generations to get qualified for professional courses related to your business. After completing their studies, they can join the family business so that the new generation will bring new ideas with them, will be expert in working with new technology and latest market conditions. This would help in keeping pace with changing technology and environment. One thing to be held in mind, to keep family business long going you should have strong business performance, and there should be determination and commitment in the family to take the business to new heights. Most ventures are shut down after 1st generation. There can be various reasons, but the main reason is lack of commitment, so always be a good learner and listener. Keep yourself updated with market conditions. Easy availability of cash is also essential for smooth running of the business. Keeping the harmonious relationship with investors and stakeholders attracts funds easier.