Creating a Successful Family Business
A family-owned business is one where two or more family members occupy leadership roles and in which the family maintains majority ownership or control. These businesses are an integral part of the U.S. economy. According to the Bureau of the Census, about 90 percent of American businesses are family-owned or controlled. Ranging in size from small partnerships to Fortune 500 companies, 60 percent of the U.S. workforce is employed by a family-owned business and these businesses are responsible for creating 78 percent of new jobs.
Shared values, commitment to quality as an extension of the family name, and a high degree of care and concern for employees give these businesses a distinct advantage. Further, over half of family businesses report their belief that their companies embrace a higher ethical standard than their competition and that they carefully cultivate a strong sense of company culture. Not surprisingly, they often enjoy outstanding reputations within their communities and industries, and also with their own employees. Clearly, a family business occupies a unique position in the marketplace.
Yet, only about 30 percent of these companies are successfully transitioned to the next generation. Also, the unique challenges that accompany a family business arrangement can be complicated and difficult to navigate in the best of times. The good news is that you can take steps to promote healthy business practices unique to this situation, so that not only will your business thrive now but a successful transition becomes likely. Read on for some tips on establishing a successful family business: FULL ARTICLE