Family businesses are big business: "Do not Mom and Pop" Just

What is a family affair?

Too often, when people hear the phrase "Family Business" immediately evoke an image of a small grocery store Mom-and-Pop shoe repair shop, or newsstand. Maybe they think characteristic of family businesses as a reminder of a bygone era, or how heroic little David fighting Goliath Company.

Not really.

According to a study of the 2003 study commissioned by the Raymond Institute and Massachusetts Mutual Life Insurance Company, 89% of all assets in the United States are family businesses, including some of the largest listed companies in the country. In fact, family businesses account for 64% of the Gross National Product! Surprised? Do not these companies sound familiar?

Take a look at these companies, and see if your perception of family business has changed:
Wal-Mart (NYSE: WMT). With over 1.25 million employees and 4000 + Stores, Wal-Mart is the largest retailer and largest private company in the United States, founded by Sam Walton in 1962 and his descendants currently owns 38% of the company. I wonder how it would be hard to get something, if the Walton family was against it? If this is not family controlled not know what is.

Ford Motor Company (NASDAQ: FORD). In the world of publicly traded companies, is often the case that when one person or entity has 5 to 10% of the stock, may control the company. The Ford family still owns 40% of the voting shares of Ford Motor Company. Read their history - some of the Ford legacy left by interesting - reminds Edsell? However, no matter what - the Ford family calls the shots.

Motorola (NYSE: MOT). Founded in 1928 by Paul Galvin, Motorola made the first radio, then moving into television production, and is probably now the largest producer of wireless communications equipment and mobile phone. As companies grow strangers to roles of leadership requires different names on the letterhead and overlooks the change in TV, but the culture of the family is always there.

Considering the family business in the 21 st century we can think of a family business in two ways:
Even if they are owned and / or controlled by a small group of people, or whether or not you act like a family in terms of how they treat one another, their employees, and their activities.

The first scenario is obvious - the second, consider your job.

Invariably there are people who have taken on the family-like positions that have nothing to do with their place in the organization. Someone who is the person we turn when we need help with a colleague, like our mom did when we had problems with our brother or sister annoying. Someone is the father figure, wise and thoughtful, which urges us to put aside our differences and get the job done. There are people like a favorite uncle - that does not seem to do much, but he's a good guy who could let him go? The parallels are endless.

And even the larger companies without the family member working with family systems. They exist in many enterprise environments because its well-known principle that family systems are able to get the best people.

Some Fortune 1000 size companies are organized around a system of having no more than 150 people in a plant. They recognize the value of the atmosphere (teams) and believe they are more important than the "savings" that could be achieved with the larger business units.

Generally, when the experts consider the criteria which characterize the organization as a business "family", you look at these three characteristics: a single family controls the company's properties.
The members of the family of control are currently active at the highest management level.
The family was involved in the company for at least 2 generations, and it seems to be.

Not all three must exist, but everything normally. The big misperception remains, however, that all businesses run by families are mom-and-pop. This could not be further from the truth.

Challenges for private companies.

I gave examples of family businesses that have grown into giants, corporate entities around the world. But what about non-listed family firms, which remain outside the hands of the public, companies could not buy shares because it is not for sale? They can compete against the Fortune 500?

Cargill Incorporated. Headquartered in Minnesota since 1865, Cargill is the largest private company in the world. Its 95,000 employees buy and sell products with operations in six continents. Cargill and MacMillan descendants have managed the company for five generations, with family members who own 85% of the company and key employees who owns the remaining 15%.

Koch Industries: This privately owned company with over 11,000 employees in Wichita, Kansas, owns a diverse group of companies engaged in trade, investment and operations worldwide.

Clearly, these private companies are playing in the big leagues. No Mom-and-Pop shops. With listed companies that make up a small percentage of all companies should not be a surprise to us that this is the case. In fact there are over 30,000 private companies in the U.S. with annual revenues of over $ 25,000,000.

Generally, as family farms are not always looking for investors' money, and why not have a public information staff - to keep their name in the media and their value per share up - we never recognize their dominant position .

Common Ground.

What do these private companies have in common with the large, publicly traded companies?

When it comes to the problems associated with getting along and working together, have exactly the same problems that every great company! And, pointing down through the smaller companies, it becomes clear that the problems are the same at all levels of activity.

And big companies do not necessarily mean big problems.

From a financial standpoint, smaller, unlisted companies have exactly the same stumbling blocks of their megalithic counterparts, but the situation may be even more intense, and the consequences even more dire: after all, its one thing if you're wasting shareholders' money, is quite another when you're losing your opinion!

So what's my point? Well, if you are a member of a family company, you already know these things. I'm really preaching to the choir, is not it? When I meet someone for the first time and ask me what I do and say "I work with family businesses" - many of them will launch immediately into their history - as their great-grandfather came to the U.S. with only his clothes back and a carpet bag full of samples from the family business in the old country and the story goes on and on.

This article is really for the rest of you. Those of you who thought (before you start reading here) that the family business and mom / pop businesses are the same things. Those of you who want to serve this huge audience, now they're starting to see the potential, but I'm not sure how your experiences with government agencies, universities and large companies will result in Main Street.

Business is business.

Its not the mom-and-Pop. Business is business. It 's human nature to want to tear the huge multi-million dollar sales company to a giant in your area, but the main regular activity in your neighborhood are the ones that will benefit the most from your experience and expertise (and vice versa). In the absence of committee meetings, the board approves the request and no end to the requirements of the proposals.

For example, there are many more opportunities for conflict resolution professionals to build their customer base and reputation in the business arena family listed. There are many perspectives more insurance policies of $ 500 000 $ 5,000,000 policy. And because of all the 755 companies that have fewer than 25 employees - there are many more opportunities for them.

Businesses of all kinds will find more opportunities for family firms compared to public companies - there are many more of them. And when you do not get the nomination, or do not make the sale, or a client will leave you for someone else, will not be fatal - it will be easier to replace than that customer is one giant 'I've spent your life looking for.

Less than 50,000 companies are listed on all the bags, but literally millions of businesses that are not. And "private" does not necessarily mean small profits: more than 20,000 private family business in this country are more than millions of dollars in annual sales!

So I ask again, how are they different? We have seen that from a commercial standpoint, are similar, same rules, the structures themselves, the same challenges, etc., but the family means that people are connected. And you can not just choose, when the going gets tough, stop being connected.

People are often forced into situations where they must work cooperatively in an interdependent world, long-term relationship with people who would not necessarily have chosen to work with, and can not (or will not) easily leave. People need to be able to get along with their families to work, because they will get along with each other outside of work.

In addition to standard business corners, people in a family are in the unique situation of having to juggle family and personal dynamics with other on-the-job stress. For example, a family member feels that the matriarch or patriarch love a brother or sister, and gives them preferential treatment at work.

Or a brother-in-law with a degree in advanced economies has increased over the presidency in favor of his son, who can barely add a column of figures! Conflicting messages from senior generation often keep a group of people who think they are entitled to something they're not going to get.

So, if you work in a family business, you have all the problems associated with managing a business, getting along with people who do not want to work, a life of personal baggage that comes with every family, and the knowledge that one day all this will be yours.

It could be yours sooner than you think! Not long ago the Wall Street Journal characterized by an investigation of the transition plans of entrepreneurs. The vast majority of owners of family businesses see their continuing operations in the hands of the family.

In fact, 9 out of 10 heads of families said that the family controls the family in 5 years. These figures are significant when one considers that 39% of companies will undergo a change of leadership in the next 5 years, and 56% in 10 years, retired as leader of today.

Family Business and professional solution providers.

Emotional problems often prevail over the logic in the context of family enterprise, and learning about the advanced emotional challenges of family business, becoming an expert in the techniques of conflict resolution can provide valuable assistance. It will greatly enhance your reputation as someone who understands them (the most important element in any relationship).

All business issues, issues management, human resources planning problems and issues of transition - are exacerbated by the fact that the whole process is very emotionally charged.

Someone who understands simple techniques of conflict resolution has a huge advantage over their competitors, regardless of advanced degrees, professional designations, etc. are recognized as the best placed to help the company create an environment in which the production planning may have site.

Based on the principles found in the landmark self-help text for mediation, "managing differences", each of us can learn the simple process of helping our customers manage their long-term family / business relationship interdependent. These are strategies that help people work together in the long run. The integration will allow your work to help clients develop common objectives necessary for an environment in which the active planning for the future can take place.

Simple idea, unlimited possibilities.

The idea is this: if you can combine professional knowledge with skills in conflict resolution and coaching skills development, the potential market for services is enormous. There are almost unlimited possibilities for adding to your business, your satisfaction, your customer base and revenues to reach and going after the family businesses in your area. are easy to reach because they are everywhere. And once you understand how you can help them come to you for help.

Sure, everyone wants the big deal - the contract of government, the training contract with the megacompany. Typically, organizations take weeks or months or years to make decisions. Many meetings, a heavy chain of command, and the decision by the Committee all things slow down. You made a huge investment of time and effort before getting the green light, if you get the green light.

Smaller, family businesses or private can make hasty decisions. They can determine if you like it or not, if they think they can help or not, they can say yes, and you can write a check. They can make these decisions without having to ask permission.

Can be found at the Rotary clubs, chambers of commerce, and through tens of thousands of trade associations are found in every corner of the country. And if you like the way you work and send their friends whose family business deals with similar issues - an endless stream of contacts .......