10 Tips to Make a Family Business Better Than a Quoted Business

Four weaknesses family businesses are prone to, be aware of these and avoid the worst effects:

Conflicts of interest

The family owners have the power to pursue their own objectives and desires. These may not always coincide with the best business interests of the company.In a publicly owned company the pressure from shareholders and the organisational structure should ensure this doesn’t happen to any significant degree. Of course you may still find the company sponsoring the CEO’s favourite sport or even team!

Poor profit discipline

A family business can be inclined to focus on product quality, on having the best equipment, on building a sales empire, or some other ‘non profit’ oriented strategy.

A comparison between small companies and their publicly owned counterparts indicated that the family businesses had lower profit margins, typically half what the publicly owned companies made. Partly this will be a consequence of the different motivators. Public companies are motivated to report growing profits, family owned businesses are more conservative, for competitive and tax reasons they can be less enthusiastic to recognise profits. Nevertheless, there is food for thought on profitability.

Inflexible marketing

When opportunity presents itself, a family business can be reluctant to embrace it, if it requires investment, particularly if that means equity investment and the things that go along with that, dilution and outsiders becoming involved in the business.

The family firm can become ‘engrained’ in a particular fashion or phase and not always recognise the need to continually change and move with the times.

This does not apply to all family businesses, but where a family run business fails it is more often due to poor marketing rather than a problem with production or operations. Once market position is lost, it is slow and difficult to win back. It is highly unusual for the management team that lost the ground in the first place to be capable of winning it back.

Excessive nepotism

Nepotism is the promotion of relatives on the basis of family rather than merit. Weighing against this are the forces of the marketplace. Any company which promotes incompetent people on the basis of family relationships will soon start to suffer at the hands of the competition. The non-family managers can burdened with carrying their incompetent colleagues and of course their opportunities for advancement are restricted. Faced with this combination they are more likely to become disillusioned and leave. So this policy can lead to the firm losing some of its most valuable employees, jeopardising its long term survival.

Six advantages that family businesses have, build on these strengths

Personal sacrifice

The tradition in many family companies is to put the company first, to take dividends only if there is surplus cash and to take a pride in working for the family business. Companies with this ethos can keep going through hard times which would force any other company out of business. An extreme example of this is Weyerhaeuser which incurred an incredible 40 years of losses whilst growing into an industrial giant.In times of recession family businesses can pull together. Family members know it’s their own business they are tightening their belts for. They will give up salary, time and status in order to help the company through a rocky patch. In difficult times family businesses have fewer uncertainties.Family members reporting to one another, confiding in one another growing the business together with the same goals, that is the advantage of a family business.

Valuable reputation

A family’s reputation can sometimes have a beneficial influence on community relations, banks may be influenced by past relations with the family.Family members have ‘star quality’. Customers don’t want to talk to a nameless faceless person. Everyone feels better talking to the person that runs the show. The guy who’s name is over the shop. How convenient then if there are 3, 6 or even a dozen or more people in the organisation sharing just that name! The experience of dealing with a family member can be just as reassuring as dealing with the managing director.There are plenty of big businesses out there portraying an image that says ‘We are bigger, we are more businesslike’. The family business can take a different approach. One that says ‘We are the owners, we care about you and we’ll make sure you’re taken care of’ a lot of people will buy because they like the family approach.Family tradition, pride and responsibility can contribute to the business’ long term success. The family name can become synonymous with quality.

Employee loyalty

Family involvement and management can avoid the problem of excessive turnover in management employees. In other words the family tie is likely to keep the manager in the business. If a non family manager finds a job that suits him better he will leave. If he joins a competitor or even worse decides to set up on his own, this creates a major threat to the business. The small business often relies upon its own techniques or innovations or on providing a faster service and on personal relationships. The departing manager can often take this ‘inside’ information with dire consequences for his former employer.In contrast the combination of family pressure, loyalty and expectation of future advancement tie the family member into the business.

The larger family companies often find it helpful to have family members involved in employee relations.

United shareholders and managers

Quoted companies often have ’employee share option schemes’ because it is seen as beneficial to have employees who are also partial owners of the business. In a family business this is almost always present. This mutuality creates a focus on long term performance rather than short term profit. For instance an investment in research and development. There is greater flexibility more leeway to try something different. The flexibility might not always result in the best decisions being made.There might also be an additional advantage of greater secrecy, they are better able to keep the competition guessing.

Better teamwork

Family business members don’t have to second guess the motives of their co managers or partners. They rarely need to worry about a family member ‘jumping ship’ to work for the competition. Junior family members can speak their mind without the fear they would otherwise have of being fired. The family team can argue over strategy or operations even when one member has their history, heart and soul invested with one particular option. Relatives can do that because they know one another and trust one another. With a non family member it’s much easier to harbour a grudge or allow personal conflicts to build up.

Stability

Many family businesses shy away from projecting their family image, they believe it makes them appear less professional. Other family businesses have found it pays dividends to portray their family background. It shows they are in business for the long term. They will provide continuity for both customers and employees. They don’t need to worry about next quarters profit figures, they can focus on five years time. Running any business is hard work. Managers who’s motives and ethos are understood at home are more likely to be at ease with their work , less stressed about their work – life balance. Building a business with people you care about can be infinitely more satisfying than building a business with people who don’t share the same connection.

Find a Home Business Opportunity With No Frivolous Fees

Looking for a home business opportunity that doesn’t charge frivolous fees? You can rest assured that an at-home-business that charges you extra fees doesn’t have to. There are plenty of web based internet marketing programs that do not charge frivolous fees. If you are going to market programs on the web, find one that does not empty your paypal account before you get a chance to start earning profits.

What fees are we talking about here? The first that comes to mind is the monthly fee. If their system is good enough, they should only charge you a one time entry fee, not an extra monthly fee. If every one of their internet home business members pays a monthly fee, what motivation do they have to keep their program current and relevant? If they need a constant flow of new members for profits, they should be more inclined to keep their offering competitive.

The next frivolous fee I have noticed is the regular introduction of expensive offerings by guest speakers after training sessions. While they may be legitimate, it seems as though some programs take advantage of their member audience. Training should be free of fees. If their program is solid, the program owners should pay for the guest speakers out of their own pocket in the interest of expanding their programs. If their guest trainer is that good, their program will naturally expand as a result. The guest trainer fee will be well worth the money and will create a more loyal membership.

Finally, the purveyors of the best home business ideas and programs should charge entry fees that do not hinder the new marketer’s budget for marketing. There are 25 million new home business opportunity seekers searching the web daily. Only about 15%-20% of these searchers can afford more than $400-$500 for an up front fee. If they are tempted by the over zealous profit claims of the big ticket programs requiring more than $500 up front, they are forced into free marketing methods or reduced pay-per-click budgets. It can still be done, but this makes it more difficult to profit from the top tier programs.

In summary, a solid internet marketing program can develop a loyal membership and profit well without charging you every time you turn around. Fair, profitable and worthy programs do exist, you just have to find them.

Health Oriented Affiliate Businesses

Affiliate networking weight loss and health businesses are on the rise and finding one that offers complete turnkey wraparound support for their affiliate business owners is the key to developing a successful affiliate networking home business. Individuals who are looking for an affiliate business opportunity are finding that it is one way in which to take their own personal passions and turn them into a business that results in substantial income.
 
Health issues and concerns are becoming prevalent in the United States and have been for at least the past two decades. The American lifestyle of being overly stressed, eating far too much processed food and not getting enough exercise has lead to an epidemic of obesity and associated health problems, like high blood pressure, diabetes and joint problems. For individuals who have decided to take control of their health, figuring out where to start and how to keep their motivation going can be difficult; this is where healthy lifestyle affiliate marketing comes into play.
 
Affiliate Marketing
 
There are several different ways in which to approach health-oriented affiliate programs and there are many, many different kinds of affiliate programs. You can choose an affiliate program that is entirely focused on selling nutritional supplements, healthy foods and other products over a website or in person, like selling Sun Rider or Puritans Pride. You can also choose a company that pays you commissions when individuals become a member of their organization, like Team Beachbody or 6PackSecret. Or you can open a franchise business, like Gold’s Gym, that promotes a healthy lifestyle and allows you to interact with customers in person. The one thing to remember is that you want to choose an affiliate program that provides you with as much support as possible by offering things like business mentoring and advice, website development, product marketing materials (website product content, brochures, catalogs, advertising, etc) and a virtual office.
 
One really great affiliate program that offers all of these support features is Team Beachbody. Becoming a Team Beachbody Coach is an affiliate marketer’s dream come true. If your passion is centered around health and helping people find their way to creating their own healthy lifestyle, then this is definitely an affiliate marketing opportunity worth investigation. Numerous people have found that the support, products and marketing opportunities make building a home based business easy to not only start, but also maintain.
 
Case Study
 
Beachbody is a affiliate marketing program that has been around for many years and they have perfected the marketing of their products with providing everything an affiliate member needs to generate income and build their business. Beachbody generates an enormous amount of customers by the multitude of infomercials that are currently airing on television. These infomercials include products such as P90X, Turbo Jam and Hip Hop Abs.  Every customer that calls in to order one of those programs is assigned to a Beachbody Coach (affiliate marketer).  The coaches are independent contractors and will help their customers succeed in their set goals. The Beachbody Coaches are there for informational and motivational support. By providing one on one personal motivation, Coaches are actually able to not only help their customers reach their own personal goals, but also have the opportunity to suggest products and program available and build their business through product sales. 

In addition to highly popular products and providing personal contact and support to customers, Beachbody also provides amazing support to their Coach/Marketers. They provide website development tools, marketing support, a virtual office and a constant flow of promotional materials and opportunities for every marketer to use as they build their business. They also provide highly successful opportunities for marketers to build their own down line system by promoting Team Beachbody as a business and assigning an upline Coach to every person who joins the program as a business member. As a result of this complete turnkey system, Beachbody has become one of the most successful and sought after affiliate marketing programs in the United States.
 
Summary
 
In today’s down economy, many people are turning to creating their own business opportunities rather than waiting to be offered a job when the economy starts to finally turn around. If you have the entrepreneurial spirit and have a passion for health, you should definitely consider an affiliate marketing home business. Quite a few individuals have done so well that they have left their former profession entirely and are devoted to helping others build a healthy lifestyle while building their own personal business. You could be one of these success stories too!