
As with partners in other companies, in a family business it is essential that all members have common goals and business plans.
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Succession of a powerful tycoon of a large media empire. This is the premise on which “Continuity” is built, one of the most popular series of the American television channel HBO, which shows some of the most pressing problems associated with opening a family business. Although this is a work of fiction, there are many families who They have their own businesses, which are passed down from generation to generation. In Spain alone, it is estimated that there are 1.1 million family businesses, which means that 89% of the country’s enterprises follow this structureaccording to the Family Business Institute.
Outside Spanish borders, the records of the Institute of Family Businesses show this There are 14 million family businesses across the European Union, while in the United States, the Harvard Business Review estimates there are 5.5 million.
In this global structure, the Murdochs, owners of the media conglomerates News Corp and Fox Corporation, the Members who lead Paramount Global, or the Sulzbergers, owners of The New York Times newspaper, They are one of the most important family dynasties from the business world.
Tips for starting a family business
Family businesses have a number of characteristics that distinguish them from other companies. In particular, the Institute of Family Business notes that these organizations They tend to be passed down through different generations and that they are self-funded by investing their own assets in the investments they make. In addition, they usually have a Life expectancy is higher than other organizations. In the Spanish case, the organization notes that the average age of these companies is about 33 years, compared to 12 for the rest of the companies.
In this sense, examples can be found in the ecosystem family businesses with a long history. This is the case of the Catalan wine producer “Codorníu”, which was founded in 1551 and has positioned itself as one of the oldest and most famous brands in Spain, passing through 18 different generations.
On a global scale, Japan’s Houshi Onsen is another example of a family-run business that has stood the test of time: Founded in 718, the property has a centuries-old history and has passed through over 45 generations of the same family. Another case in point is Hacienda los Lingues, a chain of hotels in Chile that was founded in the 16th century and has passed through more than 15 generations.
More recent cases of the Ortega family, owners of the textile manufacturing and distribution company Inditex, founded in 1985 and which unites international firms such as Zara or Bershka. The current non-executive presidency of the group in 2022 is held by Marta Ortega, the daughter of the group’s founder. Another example is the Roig family, owner of the food distributor Mercadona, founded in 1977, in which several family members hold positions of responsibility.
Although there is no guarantee that a family will not have conflicts that could affect their longevity, there are a number of tips that can be applied to reduce these risks:
- Match the goals. As with partners in other companies, in a family business it is essential that all members have common goals and business plans.
- Maintain good communication. In order not to offend family relationships or cause disputes, it is necessary to maintain clear and honest communication in which the opinions of all parties are heard, and to keep personal life away from the professional sphere, especially if an agreement has not been signed. partnership agreement.
- Be selective and hire people from outside the family. When choosing employees for a family business, one should take into account not only the degree of kinship between members, but also their skills and qualifications. In addition, it is recommended that there are also non-blood related workers in leadership positions who can contribute to new business visions.
- Set the standards. Although the company is based on a family structure, it is important that the entrepreneurs establish the rules and guidelines that govern the company in order to avoid conflicts and maintain the coherence of all workers.
A family can be the basis for building a long-term business if all project participants agree and communication is honest.
*This text was originally published on the BBVA Innovation platform.
We have republished it with the permission of BBVA Colombia on our digital platform dedicated to entrepreneurship and leadership.
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