The Secrets about Running a Family Business

The Secrets about Running a Family Business

Putting up a business with your family seems like a great plan if you plan on starting a business. Why not have your family participate in your dream business? You could be looking for someone to help you operate and build your corporation, but if you wanted to save some time, you could get help from the people around you. And also, study shows that businesses owned and managed by a family is more likely to be successful.

Did you know that about 80 percent of businesses in the Philippines exists as a family business? Here are some examples of family business stories in the Philippines:

SM Group of Companies

In 1958, Henry Sy started Shoemart (SM) in Carriedo, Manila. He bought shoes from the United States and sold these. Soon he transformed his shoe store into a department store.

When Sy died this January 2019 at 94, the business magnate’s children remain key players. Henry Jr., and eldest daughter, Sy-Coson, served co-vice chairpersons at SM Investments. Their brother, Harley Sy is an executive director.

Goldilocks Bakeshop

The Philippine bakeshop chain first opened in 1966 as a family business. Two young women, sisters Milagros Leelin Yee and Clarita Leelin Go, loved to bake. They decided to do business of this hobby.

They started in a one-door apartment of a two-story structure on Pasong Tamo Street, Makati. Sister-in-law Doris joined them.

Today, Goldilocks has at least 18 stores in the United States and two in Canada. It also has at least one store each in Thailand, Singapore, and Hong Kong. It has established 192 branches throughout the Philippines.

Jollibee Foods Corporation

The fast-food restaurant chain began in 1975. Tony Tan Caktiong and his family opened an ice cream parlor in Cubao, Quezon City. In 1978, they hired a consultant who shifted the business focus. Today, Jollibee has become one of the biggest fast-food chains in the world. The American-style fast-food restaurant has Filipino-influenced dishes. It specializes in burgers, spaghetti, chicken, and some local Filipino dishes. Looking back, we may be wondering what kept their business running. There must be some practices and cultures that they’re using to manage a family business. So, what are the secrets to a successful family business? Let’s take a look at this list.

1. Set some boundaries.
2. Establish clear and regular methods of communication.
3. Divide roles and responsibilities.
4. Treat it like a business.
5. Recognize the advantages of family ownership.
6. Treat family members fairly.
7. Put business relationships in writing.
8. Don’t provide “sympathy” jobs for family members.
9. Draw clear management lines.
10. Seek outside advice.
11. Develop a succession plan.

During hard times, families are more likely to stick together. And family businesses also give off a sense of stability since they can be passed down from generation to generation. You can also help each other and make up for each other’s weaknesses. Trust will also not be an issue if things go financially wrong. You can count on each other. You can consider doing a family business. There are a lot of things beneficial from each of the members of the family while doing business. You build your financial state while you bond with your family members and share some experiences.

Reference:

https://www.entrepreneur.com/article/376615
https://prworksph.com/family-business/

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