Every now and then we hear small/family businesses say something to the effect of “we can’t compete against the big box stores” or “the big corporations are taking up all the business” Does this sound familiar? Then this episode is definitely for you. We’re going to discuss the many competitive advantages that family businesses have over the big brand names that may even be across the street from you. I (Robert) worked for 25 years in some of those big brands so I know the advantages they have. But having consulted for the last 8 years or so with small/family businesses, I also know the distinct advantages they have over the major corporations. Also, Kay Lee grew up in a family business that everyone came to so she knows firsthand the advantages family business has that most corporations don’t. So buckle up and take a listen to this episode.
The importance of family business to the community and nation
Account for 64 percent of U.S. GDP
Generate 62 percent of the country’s employment
Account for 78 percent of all new job creation
Long term vision and decision making
Recent research has shown that continued family control can be efficient, since families are, for example, able to positively affect the resource inventory and usage of their firms, apply a long-term perspective allowing for unique strategic positioning, have less human resources problems and higher firm values, or drive new entrepreneurial activity.
More stable as opposed to feeling the pressure of short decision making from stockholders
Less employee turnover
Long term employees
More efficient, capable
In tune with the customer
Customers love the connection with the owner and staff
People do business with companies they know, like and trust
Less customer turnover. Great retention
Small businesses can pivot faster than large corporations
COVID showed how the small businesses adapted quicker than the large companies who have to go through more red tape.
Owners are usually more involved and known in the community. So the community tends to feel they have a greater connection to the business.
Chamber involvement, rotary, non-profits, etc.
Focus on your core strength as the basis of your brand