River of Doubt
October 29, 2018
Intuition – A Leader’s Advantage
November 9, 2018
November 5, 2018
By Robert Pope
Family owned businesses have a huge impact on our economy. I am very biased when it come to this topic. No question about it. But that bias is based on real-world experience that has been both painful and rewarding.
I do realize that many people find rewarding work in the corporate world. I obtained some incredible experience and came away with some fantastic relationships when I was in the Fortune 500 world for 12+ years. The odd part is that nearly the entire time I was there I was looking for a different job.
Today’s topic came about because of an article in “Entrepreneur” magazine. The author began with a gripping recollection of watching her father turn down an offer of $2.5 billion for their family business. The unique twist is that this family owned business is in Vietnam. Her father did not believe there was a proper fit between the two companies.
Phuong Uyen Tran closed out the article with five reasons that she believes family businesses are more effective that the traditional corporate entities.
- Speed: Family businesses typically do not answer to a board of directors that must approve every move. If the market suddenly changes, a family business has the ability to change quickly.
- Adaptability: A family business is more likely to move into new lucrative territory faster than a large bureaucratic business.
- Knowledge of local markets: Locally run family businesses are more connected to the community.
- Ability to achieve long-term goals: Local family businesses do not have to worry about quarterly profits like most major companies. They can take a longer view of the business and do not feel as pressured to react to short term issues.
- Buy in: If the family’s name is on the door, they are going to try to make sure every customer is happy.
She makes some excellent points and I am very thankful to be part of a family owned business.
