The strength of every family business in India is its common goal, and the values of the family it is based upon. This forms the foundation of the company, and every generation needs to follow it with utmost respect and commitment. Similarly, every new leader that takes over needs to have the same perspective and vision
Strength of Family Business – Predictable Problem Resolution
One of the most important strengths of family-owned businesses in India is that the employees, as well as the people connected with a family business, receive opportunities to fix specific issues before they get out of hand. It does not rely on foresight entirely. These issues may include personality issues in the case of employees, structural problems in the case of the functioning and coordination of the family business. The latter consists of the inability to determine the cause of the downfall of the business. The advantage is that these issues, primarily structural, are mostly predictable, thus solvable. These issues could be addressed beforehand and debated and fixed or avoided to a great extent.
Commitment from the entire family is another strength of Family Businesses in India
The founders of the business are naturally most passionate about the family business. For them, it is their dream and vision coming true. They put in the most effort into it and are very determined about it adding to the strength of the family business. The whole family shares this energy and responsibility and everyone tries to uplift the empire. It adds commitment and loyalty to the part of the employees and members who do their best to make it a success.
Knowledge and Expertise of the family in the business
Family businesses often have some specialized knowledge or secret formula for doing things that make them unique. Hence, adding to the strength of the family business. In a typical corporate environment, this kind of information would soon be general and very common. But in a family business, loyalty and commitment keep them hidden safely inside the family. This secret and specialized knowledge also form an essential factor in the next generation’s enthusiasm to join the business and their dedication to making it grow with guidance from the founders and senior members.
Strength of Family Business – Flexibility in Work, Time and Money
Family businesses in India refer to the dedicated efforts put in by the whole family in a family business. Unlike the corporate world, in family businesses, there is a strong sense of belongingness and loyalty. Thus, the members work very hard, putting in all their time and effort. In the conventional setup, there could be room for flexibility in incomes and expenditures because they are not fixed and are subjected to financial circumstances.
A Stable Culture is always a great strength of a family-owned business
Stability is the key to a successful family business. Since they are profitable niche enterprises, they are durable and low profile. The leader and key management employees have been in the firm for the long term. The entire family works for a cause. Family businesses in India have had ample time to connect and coordinate. The practices and methods of working have been established and approved. Everybody has had enough time to adjust with them. It could sometimes be harmful, as well. Too much stability could make the business and the members involved unreceptive to change. Great comfort and acquaintance with the system could prompt them to reject any change or increase efficiency.
Reliability and Pride is another strength of family-owned businesses in India
Family businesses are substantial and reliable. Many customers prefer doing business with an established company that has a stable structure that works on trust and reliability. Therefore, the family businesses are usually more approachable, friendly and develop interpersonal relationships with the customers. Hence clients, vendors and suppliers prefer doing business with them. Apart from that, they have a strong sense of pride in having established the enterprise, and this often serves as a reliable marketing tool. This gives excellent assurance to the customers and wins them over.