Getting out of this accumulation of expenses is not so easy and in a family business double effort is required, because doing business with relatives is not exactly an issue where feelings and ties that sometimes lead to stagnation or even failure are left aside. final closure of the project.
At the end of the year, many family businesses do not have a short-term strategy or even a contingency plan that anticipates possible cuts or lack of liquidity. So why do they survive so much adversity and sometimes rank higher in December than other competitors?
community to the rescue
The answer lies in its great sense of community. The financial problems in this last stage of the year may be the same, but each company is hit differently and each industry suffers in its own way. In the case of family businesses, any macroeconomic challenge can shake the business, but unity and a sense of community keep them afloat.
Big businessmen are questioned about interest rates, massive layoffs, the financial situation, pending with banks, creditors, suppliers; In short, they look for an ideal strategy to overcome adversity and minimize risks.
Contrary to that, in family businesses these same issues are handled differently, not that they are simpler, but rather that by involving a smaller number of people (many of them with years or even decades in their positions, which makes them experts in their area), decisions are usually made and executed more quickly.
In order for these decisions to be effective, it is essential to surround yourself with advisers, analysts and experts who help outline real solutions and who accompany the company at every step. In addition to this, the support of the collaborators will be key for an impeccable execution.
These supports are not fortuitous, they have been forged with years of solidarity and camaraderie. Family businesses have known how to maintain a closeness between leaders and collaborators, this leads them to forge labor relations based on values and that is a great virtue. These are allies in all aspects of the company: business partners, who are also family, suppliers, collaborators, and even customers who have become friends.
Longevity and new leadership
It is true that, compared to large companies, these businesses face inequalities in terms of digital innovation, technology, expansion, diversification or in-depth knowledge of the market; but their strong points (such as entrepreneurship and flexibility) lead them to have a longer average lifespan, 25 years on average; far exceeding conventional SME estimates of 7.8 years.