Having family members as part of your business seem to be the best way of doing business. It is like working for the family with the family. There is no scope for trust issues and there would be an assurance that everyone would keep their 100 %, as the sense of ownership exists in all of them. But according to market statistics, most of the family startups end no sooner after they have started.
Family based business was most common in past and have successfully thrived well. In the modern age of globalization with different players in the market, there is high competition. Surviving in the market with old business rules is not possible.
There are many books and articles available about how to thrive as an entrepreneur or how to succeed in a family business. But all of them has failed to give a good understanding about should do points in a practical world. Here is our attempt to expound the principles of doing successful family business with a case study of a successful family business, celebrating 5th year of its establishment– Century Hearing Aids.
It is a small American Family owned business who offers hearing aids services to people at affordable prices.
We shall go in through different principles for successful business along with how the company has executed these principles.
A journey without a goal is bound to fail. It is important to fix a goal before venturing into a business. Be it a philanthropical, religion related or profit oriented, a strong and reasonable goal is must for any business.
Identify the best business:
There are many areas of doing business starting from ball pin to rockets. One should select the business according to their expertise, capital, and manpower, the area of establishment and chances of surviving through cut-throat competition.
Understand the priorities of customer:
One should understand the needs and priorities of customers to whom they are serving. Companies with customer friendly approaches thrive well than companies without them. Good customer care service and grievance redressing mechanism helps in winning more customers.
Single decision maker:
In a family owned business the sense of ownership, sometimes can become a problem during decision making due to difference of opinions. There should be a single decision maker for a company to keep it growing without any disturbances.
Identify skills and assign roles:
Not everyone can do all works; each person would have their own unique skills. One should identify the skills in their family and assign them roles according to their skills. A wrong job to the wrong person would spoil everything.
Having a good marketing campaign helps in taking a home business to the streets of markets and far across the places. Marketing through social media, print and electronic media helps in reaching to various customers.
Technology has become integrated part of any business. One should embrace the benefits of innovative technologies to gain profits. Use of e-commerce websites and software for day to day activities like accounting, inventory management and order details.
Be passionate and don’t give up:
One should be passionate enough and have strong desire to keep 100 % of oneself into the business and ready to correct mistakes. Problems are bound to occur at the beginning, one should keep continuing efforts without losing heart.
Discounts and guarantees:
One should make good use of offers and discounts that be provided to customers which would attract them and good reviews. Providing guarantee on the product you deliver increases trust factor.
It is always good to donate some of your earnings for social causes or supply your products for reduced prices to the needy. This would increase goodwill among customers. They also help popularizing the company name among public. Most of the governments provide tax exemptions for money spent on donations.
A good example for successful family business
Century Hearing Aids is established with a goal to provide hearing aids that usually cost $6000–$8000 a pair for 50 to 75% less money, with the same digital technology and features. The idea of Hearing aids at lower prices is the best idea in an area where there is a high cost for products and low spending abilities of customers.
Its customers are retired citizens with low spending abilities often reluctant and unable to use digital technology. The pricing policy and customer policy of the company are in such a way that all concerns of customers are well addressed.
Jon Stoddard is the owner of the company. He is a veteran of US Air Force and later he has started his own family business with his wife as one of his partners. He is the decision maker and policy maker of the company.