Family Business, Non-Family Business, Urban Myths.

After 20 years of working with Senior Executives across the world it’s interesting to see the mistakes when appointing Senior Executives. There can be many reasons why, but one reason is not understanding the differences of working in a Family Business and a Non-Family Business. I’ve recently met several Senior Executives who are unhappy with their employment because of this lack of knowledge and understanding and I’m meeting Business owners who didn’t realise there was a difference. These Business Owners feel that money and title is enough and stick to the Mantra of “Surely experienced ‘C’ level Executives can work in any company?”

Due to the change of economy, I have become more involved with assisting Family Businesses rather than just the corporates in finding ‘C’ level people. To do this successfully I believe that everyone in the process of hiring Senior Executives must understand the differences that separate the two entities. Having worked for an English and Indian Family Business in a past life this has helped me at first hand to see the ups and downs of these Businesses; this with a theoretical base has helped with running my own companies or advising others with theirs.

One recent company I have been involved with was run and founded by a successful New Zealand Entrepreneur. He does not have anybody in his immediate family to hand the reins over to. He has tried (outside the family) executives to fill his ‘C’ level roles and has had three people in three years! What is the problem? Was this a real Family Business? Was the Problem his, or the Executives?

We discussed the reasons for the failures but in terms of assisting the owner I got him to firstly look at where his people came from. All three had been ‘C’ level people in corporates and had done an excellent job in their corporate environment. They all returned to corporate life and continued to do well in their new roles. Why did they fail then in this successful company?

What I needed the owner to do was to identify a “Family Business”. I don’t normally use dictionary definitions but feel that in this instance Wikipedia gives a satisfactory explanation of a Family Business;

“A commercial organization in which decision-making is influenced by multiple generations of a family-related by blood or marriage-who are closely identified with the firm through leadership or ownership. Owner-manager entrepreneurial firms are not considered to be family businesses because they lack the multigenerational dimension and family influence that create the unique dynamics and relationships of family businesses” Wikipedia 2014.

We looked at his company and although he didn’t have anyone in the immediate family to take over the reins he had people who owned the company in minor leadership roles. We both agreed he did in fact have a Family Business.

He thought that buying in top salaried ‘C’ level Executives from corporates would enhance growth and sustain his business. He had not seen any differences between Family and Non-Family Business.

Urban Myths for Family Businesses;

All are unstable Small to Midsize businesses’.
As an Executive I don’t want to baby sit the junior family members so they can take over my job.
A non-family member will never run the company.
Mother and Father Companies, the only people that matter in the company are family members.
Emotional hard to work places due to family disagreements/arguments.
Incompetent family members in positions of authority.
Are these statements true or are they just Urban Myths?

Family businesses are one of the fastest growing sectors of the world economy and now merit serious consideration by Senior Executives looking to advance their careers. This is an amazing turnaround from 25 years ago when nobody wanted to work for a family-owned business. There now seem to be many positives;

Patricia Epperlein from InterSearch reports that;

In the USA, 90% of businesses are family-owned. They contribute towards 40% of that nation’s GNP and pay approximately half of its total wages.

59% of France’s Top-500 industrial companies are family-owned.

It is estimated that 70% to 85% of all businesses worldwide are family-owned.

Tom O’Neil NZ Herald. Jan 2014 states;

Small to medium businesses are the lifeblood of New Zealand industry. Various sources cite family businesses as representing 75 per cent of Kiwi firms, providing up to 80 per cent of employment and 65 per cent of national GDP.

It’s interesting to note that when companies around the world state that they are a “Family Business” they are trying to reinforce positive family values of, Integrity, honesty, trust and loyalty.

Not all Family Businesses’ are SMEs. Companies like;

Porsche
WalMart
Tata Group.
In New Zealand the Talley Family (Agribusiness) and the Pandey family (Hotels).
Simon Peacocke of BDO Auckland, an accredited Family Business Advisor works with numerous NZ Family Businesses and feels that they do well because of the following reasons;

Family businesses think very long-term and are very resilient, much more so than non-family businesses.

Second and third generation family business members start their apprenticeship at a very young age. At 5 years old they are hearing their parents talking about the business so they have an incredible depth of knowledge to draw on.

Their relationships with staff and communities also tend to be different – closer, more connected, more loyal.

Staff tend to become part of the family business and to stay on as long-term committed employees.

While corporates like to be seen supporting their communities, family businesses generally don’t promote they are doing this – they just do it.

They don’t throw lots of money at things trying to get rich quick.

They also have a powerful focus on building relationships with staff, customers and suppliers.

So is it worth working for a family company? Is it better to work for a Non-Family Business? Is there any difference when the economy is good or is in a slump?

Nicolas Kachaner 2012 in the Harvard Business Review states,

“Results show that during good economic times, family-run companies don’t earn as much money as companies with a more dispersed ownership structure. But when the economy slumps, family firms far outshine their peers. And when we looked across business cycles from 1997 to 2009, we found that the average long-term financial performance was higher for family businesses than for non-family businesses in every country we examined”.

Senior Executives looking for longevity in the work place should look at the Family Business as this would take them through economies varying peaks and troughs. They will need to be aware that this will always be done in a cost effective way.

Business Consultants believe that they can tell easily if the company is Family or Non-Family Business. You just walk into the Head Office. A Non-family office has a very substantial corporate office with a “Wow Factor”. The Family business being more Frugal has very few “Bells and Whistles”. This Frugality is about the Family Business CEO looking to invest in the long term 20 year plan with the business passing down the generations. The Non-Family CEO is looking to make an instant mark and will try and outperform the person they have taken over from. There are many studies that show that Family Businesses did better in the recent Global recession for the above reason. The Family Business is frugal in the good times and the bad allowing them to weather the storms of economic crisis.

This is one of the factors that had been wrong in my client with three ‘C’ Level people in three years. His ‘C’ level people came in with a quick turnaround plan which they hoped would give a quick fix and outspending the last person in the hope that they would do something instantly. No twenty year plan for them as they had never been afforded this way of working in the past.

Do Family Businesses perform differently in other countries?

Justin Craig, PhD states,

“Interestingly, in many aspects family businesses as a sector do not vary much from country to country. There are obvious cultural differences but a business with family involvement is challenging in every country. It is also more rewarding than the ‘corporates’, let’s not forget that. Of course, there are older businesses in Europe, for example, than in Australia and New Zealand and the United States, and the mind-sets of companies in Europe will differ than in the later developed countries. But day to day the differences are not noticeable. Older businesses have more at stake and lots more to lose but they also have advantages. Family leaders still have to manage three independent and interdependent systems being the family, the business and the ownership group”.

Appointing the right Senior Executives is crucial to any company and is a costly acquisition. There are many reasons why hiring at this level goes wrong but getting it right can make a huge difference to your company.

To answer one of my questions, can a ‘C’ Level person work in any type of Business, Family or Non-Family?

Yes, but only if they are armed with the knowledge of the differences of the two. What they must also be sure of is the type of business that they are going to work in as sometimes this can be a cloudy issue, making it difficult for them to decide which one it is. Look at those mighty corporate companies of Porsche, Tata and Walmart to name a few.

Finding the right ‘C’ Level Executive is a lengthy process and shouldn’t be rushed, if you need to rush you are better to go down the Executive Leasing Route in the short term which will allow you to take a breath and get the right permanent person in place. Work with your inside team or your outside partners to establish a good process, so the firm can articulate the process to the Senior Executives. Everyone appreciates the fact that there is a well thought-out plan in place.

For me, I decided a long time ago not to build a Family Business. I wanted to give my children the best in life, but wanted them to make their own way in life too. My children might disagree but as one is studying to be a Barrister and one is settled in a corporate I will wait and see if I need to step in? I have however, always agreed with Billionaire Investor Warren Buffett who said, “He would give his kids just enough so that they could do anything, but not so much as they did nothing”.

Best Home Based Business Ideas: Free Training, Simple Strategies and Support Communities

Our greatest ideas always seem to come when we do not have a pen to write them down. With the Internet, the pen is no longer needed. All you need is your search engine. When searching for your home-based business ideas you should search for specific criteria. First, you should be able to learn about the business for free. Second, the business should include strategic plans that are simple to follow. Third, your business should have a community of support.

When you search for home based business ideas online, millions of results will be returned. Focus on businesses that offer legitimate, free training. You are not expected to know everything immediately and you should not be expected to pay oodles of cash before you get to try out the business. There are legitimate companies available online who do provide free training and help you get off your feet at the same time. Legitimate companies offer free training because they need you to be successful. They are willing to invest in you and they want to invest in you.

Strategic plans that are simple to follow are monumental assets to the business you choose. Starting a home-based business is scary enough. What you do not need is something so overwhelming you are afraid to try it. Read the reviews covering the business ideas you are considering. You want to go into a business that people like. Positive reviews should help you make your choice. Reviews are written by the customers the business serves and by those actively involved in the business. If the customers and members of the business are happy, chances are you will be happy too.

Community support is another critical component of narrowing your home-based business ideas. You can venture out all alone, or you can find a business with a community. Communities are made of members participating in the business. Members are your best available mentors. They can teach you what they have already learned. Guidance is crucial to your success. Also, members support you. Not only can you partner up and be mentored, they offer encouragement. Encouragement is important because no matter what home based business idea you choose; it will be tough in the beginning. Do not give up! Your fellow members can coach you through your anxiety. Stick with your business and you will see the results you expect.

When you are searching for the best home based business ideas ask yourself what criteria you need. Again, free training so you can earn while you learn. Investigate the strategies so you can find plans that you will be able to follow successfully. Always, find a business that has a community that will support you on your journey to success. With these criteria, you will narrow your search and find the best home based business idea that is right for you.

Website Business – Equitymillions System Review

Website business is one of the lucrative business on the internet.

If you do a search on Google keyword suggestion tool for the word “website business” related , you will find below current searches per month :

a) Website business – 90,500

b) Virtual real estate – 18,100

c) Sell website – 18,100

d) Flipping website – 2,900

e) Flip website – 2,400

f) Site flip – 1,300

From those statistics you will know that many web entrepreneurs or internet marketers are looking for effective ways or methods to jump into the bandwagon of selling websites for profits.

A search on Yahoo for the keyword “website business’ will bring in about 2 billions websites and blogs that are involved in the website business or virtual real estate industry.

Today I am going to give my readers a review about a unique and one of a kind private website flipping membership site that deals in selling websites for profits.

The membership site is Equitymillions.

I personally knew the creator of Equitymillions from the private RJ forum.

Their names are Brian Owens & Tyler Ellison.

Being the most active and respected forum members who always comes out with a brilliant and new ways to make money online and i am not surprised that they created Equitymillions out of their years of doing online business and helping others to make money online.

Even the Richjerk himself endorsed their website business membership site and the Richjerk is well known to the forum members that he never recommends crappy or low quality systems for his massive subscribers list.

Here’s a few benefits that their website business members get when they join the membership:

a) There is a forum and a marketplace for members to buy and sell websites

b) The top poster in the forum will work one on one with Brian himself on site selling.

c) Monthly site selling summits

d) Brian and another internet marketing guru will do a conference call with their members to guide them on virtual real estate business

e) They will teach you on how to make 1000s of dollars per month with a tiny list of less than 20 people.

f) 30 videos inside member area that teaches you every tricks and tips in your website business niche.

g) Free website hosting that comes with site builder tools for a great looking websites for those non techie members.

h) More than 4,500 templates for your website design that you can choose from.

There’s a lot more to it but I just want to mention the key point here so that you will understand what it is all about.

I am confident that the website business will continue to grow and more smart people will jump in the bandwagon and sell websites as their source of income.

Thank you for reading and good luck.