10 Things I Know About Family Businesses
Arthur Barrett is president of Barrett Distribution Centers Inc., a third-party logistics service provider based in Franklin. He can be reached at abarrett@barrettdistribution.com.
10. Outside Influence
An “apprentice” (son or daughter, or sibling) should start a career outside of the family business, in order to build confidence and bring skills, ideas, and decision-making experiences.
9. A Great Divide
Separate family issues from business issues. You would not bring your family issue to work if you were not a relative of the founder/owner.
8. Market Shares
Establish a fair compensation package that is market-driven. Overpaying a family member may cause animosity among peers and even superiors in the organization; underpaying can cause resentment.
7. All About Value
Family values are knitted throughout the organization. At most family businesses, company values are really a reflection of family values.
6. Generous Giving
It is important to know that most family businesses tend to have generous benefits packages. So don’t cut corners when it comes to the benefits that you offer.
5. The Loyalty Advantage
Generous benefits packages create loyalty among employees and lower turnover. That helps us outperform the competition.
4. Company Trust
There has to be trust among the family members for the business to succeed. Customers sense this high level of trust, and it helps us when we are competing for their business.
3. What’s In A Name
Family businesses offer customers and clients the opportunity to interact with the executives of the company. It’s a great selling point and helps to differentiate the family business from other competitors.
2. The Longevity Factor
Customers like doing business with a multi-generation family business, with the expectation that the family members will continue to service their needs in the long term.
1. The Family Dynamic
Of course there are plenty of disadvantages that family dynamics can present, so it’s best to be prepared for how family changes can impact your business.
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