Ep 41 - Competitive Advantage of Family Business

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.

Key Takeaways:

• 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

• Family feel

  • Values

  • Less employee turnover

  • Long term employees

  • More efficient, capable

• Customer service

  • 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

• Adaptable

  • 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.

• Community oriented

  • 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