Family businesses are unique because they form a direct link between your personal and professional lives. And this comes with a number of unique risks and challenges. From rivalry and conflict to a lack of boundaries or agreement, it sometimes feels like so much can go wrong when you work with family. But if you manage to get the right balance, the opposite is true: you get truly harmonious and successful family businesses for generations to come.
That’s exactly what our goal is for our clients. In this blog, we’ll introduce you to a number of family businesses that don’t just survive – they thrive. By learning about the tools and skills they’ve used, you can learn exactly how to make your own family business the stuff of legends.
Why Family Businesses Thrive
Before we dive into some specific examples of successful family businesses, it’s important to consider the characteristics that make them work. No matter the industry, these companies share a few common qualities. They include:
- A long-term vision: Unlike publicly traded companies that often prioritize short-term gains, family businesses focus on long-term sustainability and generational growth. This means that they’re adaptable, and have a knack for pivoting according to market or economic changes.
- Strong values and loyalty: Shared values help families develop a deep commitment to the company’s mission, giving them a unique sense of identity. This enables consistent leadership and cohesive decision-making.
- Resilience: If you plan to pass your business to successors, you’ve got to ensure it’s always relevant. Sometimes, that means making personal sacrifices to ensure the business’s survival, and contribute to its longevity.
These qualities help successful family businesses address some of the unique challenges they face. For instance, they need to transition leadership across generations through effective succession planning. This requires a strategic approach to business continuity. At the same time, these firms must balance family dynamics with business needs. Unfortunately, this can occasionally lead to conflicts that require effective resolution strategies.
All the while, successful family businesses have to balance tradition with innovation. Despite the importance of a strong legacy, this can impact the willingness to embrace change. Navigating this challenge requires a careful balance.
Iconic Family Business Success Stories
Globally, there are a number of successful family businesses in a range of different industries. They’re proof that it’s possible to maintain family ownership while achieving significant success.
Below are ten examples of thriving family businesses. Even though they’ve faced challenges, they’ve overcome them through hard work and strategy.
Cargill
Founded way back in 1865, Cargill is a global powerhouse in food, agriculture, and commodities. The company played a critical role during the Second World War by storing and transporting grain. Since then, it’s become one of the largest privately held corporations in the US. Not only that, but its innovations in sustainability and supply chain logistics have actually made Cargill a leader in global food systems.
Koch Industries
This company was originally established as an oil refinery in 1940. Since then, it’s diversified into manufacturing, chemicals, and investments under current CEO, Charles Koch. In addition, the company’s 2005 acquisition of Georgia-Pacific has made it a global leader in paper products. It’s no wonder Koch Industries is celebrated for its entrepreneurial culture and reinvestment strategies.
Mars, Incorporated
If you think this name sounds familiar, you’re right. Known for iconic brands like M&M’s, Snickers, and Pedigree pet food, Mars has been family-owned since 1911. One of the reasons for the company’s immense success is its employee-centered culture, which embraces innovation and change.
Bechtel Corporation
This engineering giant has roots dating back to 1898. Since then, it’s had a global reach, with projects across the globe. This includes the Hoover Dam and the Pile Fuel Cladding Silo in the UK, at Europe’s largest nuclear site. The company is still one of the largest construction firms globally, partly thanks to its technical excellence, but also because of impeccable management.
Kohler Co.
A leader in plumbing products, Kohler was founded in 1873. It has evolved into a global leader in kitchen and bath products, power systems, and luxury resorts. Its sustained success is mainly thanks to a focus on innovation, high-quality standards, and its ability to adapt to changing markets while maintaining family-oriented values.
Pilot Flying J
Founded in 1958, this business grew from a single gas station into the US’ largest operator of travel centers, offering essential services for travelers. This was made possible through a series of strategic mergers and acquisitions of other convenience store networks. Today, its strong workforce culture allows the company to sell billions of gallons of fuel annually and offer robust food and merchandise services.
Hearst Communications
Hearst is a media conglomerate founded in 1887. It’s currently one of the largest private media companies in the US, involved in magazine publishing, broadcasting, and digital media. It houses brands like Cosmopolitan, Esquire, and Good Housekeeping, and even has stakes in ESPN. Hearst owes its success to diversification and innovation, along with family ownership bolstered by professional management.
S.C. Johnson & Son
This global manufacturer of household cleaning staples like Windex and Ziploc was founded in 1886. It is still owned by the Johnson family, and attributes its success to strong family governance and values, along with an employee-centered approach. These principles have allowed the company to become an industry leader while maintaining its family-focused legacy.
Wegmans Food Markets
This supermarket chain was established in 1916. It’s renowned for its customer service and employee satisfaction. In fact, Wegmans has been ranked as one of the best places to work in the US for a number of years. And the reason for this is its exceptional workplace culture; the company emphasizes its family values of communication, employee feedback, and opportunities for growth.
Lego Group
Many people don’t know that a business as recognizable and successful as Lego is actually family owned. The Kirk Kristiansen family started the company in 1932. It has maintained its success through several strategic shifts, and its long-term resilience. In fact, the company has reinvented itself multiple times over the decades. Yet it’s also integrated its family values into its corporate culture, emphasizing creativity, curiosity, and continuous learning.
While the above examples are famous global brands, not all successful family businesses set their sights this high. Many celebrate smaller successes that are closer to home.
Success Stories Close to Our Hearts
The team at Fusion CPA has decades of combined experience in tax and accounting, and we leverage these skills for our family business advisory services. We help family businesses navigate sensitive issues like succession planning, tax strategies, governance, and conflict resolution.
The husband and wife duo with entrepreneurialism in their blood
Despite having their roots in the gold business, this duo can find deals everywhere; whether it’s real estate or jewelry. But while that meant they were constantly busy, and bringing in money, their profit margins weren’t as healthy as they could be. Their focus was scattered all over the place. Simply put, this mentality is like entrepreneurialism with ADHD.
They needed a shift in focus, and more organization. It was the perfect chance for us to step in and help. Together, we clarified their business model, and investigated how to turn over old inventory faster, and at the best price.
Of course, in working this out, we tested a few different approaches, and broached subjects like delegation, management styles, role clarification, and how to handle conflicts. We also helped them recruit the right people for the right positions. That way, this couple has more time and flexibility to focus on their own responsibilities.
In a year, the company’s net income has doubled. And all because they had a strategic shift in focus, and reached out for assistance.
A family textile business in El Salvador
Another of our clients took over his family’s textile business after the sudden passing of his father. Not only did he have to deal with losing his dad, but he faced challenges on the professional front. This included negotiating with banks, managing employee disputes, dealing with a lack of innovation, and handling ineffective management.
Despite being the third generation involved in the business, our client admitted that not much had changed since his father’s financial struggles in the mid 1990s.
While our client tried to improve the company’s financial management, it didn’t seem to be enough. The business, which was previously one of the largest textile companies in the country, experienced declining revenue.
Sadly, he eventually had to close the business, transferring operations to another family-owned textile company. But there were still many aspects to consider. While he manages the company, our client shares ownership with his brothers and an uncle. And this has presented several disagreements about how the business should be run.
Which is where we came in. Our client knew what needed to be fixed, but not how. He also had no plans for unforeseen events. So we suggested establishing firm internal governance, through a board of directors, and emphasized the importance of succession planning. That way, he could safeguard against the stress experienced with his own dad’s passing. With transparency, clear communication, the business’ revenue has started to increase. And we have no doubt they’ll be successful for generations to come.
Lessons for Aspiring Family Businesses
If you want your company to be listed alongside the successful family businesses mentioned above, you’ll need to keep a few points in mind.
Firstly, don’t underestimate the importance of clear governance. This includes defining roles, responsibilities, and decision-making processes to prevent conflicts and ensure transparency.
Next, make sure you have an effective succession plan in place. That means identifying potential leaders early, and providing them with training and mentorship. Documenting clear policies for leadership transitions minimizes uncertainty and conflict, so that your business can continue operations, even in the worst situations.
Finally, it’s important to embrace innovation while honoring tradition. As the world changes, so too does business. Don’t let yours stagnate, or you’ll risk becoming obsolete. Use your legacy and core values as a foundation, but adopt new technologies and market strategies when needed.
For help taking your family business to the next level, schedule a free call with our experts today!
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