Advantages of a Family-Run Business

Advantages of a Family-Run Business - The Hamper Boutique Co

The Hamper Boutique Co

Why we take pride in being a family-run business

What are the first things that come to mind when we say ‘family’? Most people would instantly think of feelings and values like joy, love, care, empathy, warmth, compassion, and perseverance. We strongly believe in upholding the values of a family and incorporating them into our family-run business. When a business and family are founded upon the values of love, trust, and honesty and focused more on growth as a team, they are bound to propel towards success.

How we started our family-owned business

Our family has always been passionate about entrepreneurship and camaraderie. Appreciating the values and joys of a family, we wanted to establish an enterprise that helps others express their love towards each other and strengthen the bonds between other families. A gift represents a way to show our affection and devotion to each other.

Our family-run business, The Hamper Boutique Co, was born out of feelings of love and kindness reciprocated when we exchange gifts with our friends and family. The fleeting moments of happiness and utter joy as we excitedly await our turn to receive our gift on Christmas or our birthday and express our love via thoughtful gifts to others.

The Hamper Boutique Co was founded in 2020 by a husband and wife team around the kitchen table. The founders recall that the conversation went on until the early hours of the following morning. Today we are supported by a small team, and without a doubt, these are the most caring, creative, skillful and humble individuals you will ever meet. Each team member shares common values of honesty, trust, and, most importantly, humility. We treat each other with mutual love and respect and continuously strive to grow as a team. Every day, we work closely together towards our common goal by focusing on individual strengths and accepting each other’s weaknesses.

A family-owned business has many advantages. Let’s explore some of these advantages:

Benefits of a family-run business

Family-owned businesses constitute a core element of the economy in every country. Being the oldest form of business organisation, it is beneficial for the families involved as well as for the local and global economies. From the story of the famous Italian bankers in the 1400s, the House of Medici, to the luxury brand Versace, history is packed with examples of successful family businesses. Though family businesses have been around for a long time, we have just discovered the unique advantages of a family business within the last few decades.

Let’s explore some of the most significant benefits of running a family business.

Stability

How often have we heard stories of wars and feuds over leadership positions? The same applies to businesses. However, this is easily avoided in a family-run business, as the leadership positions are usually determined by the position of each member of the family. This allows family-owned businesses to achieve and maintain business stability in the leadership and organisational structure and culture. And when the time is right, the baton is passed on to the next generation.

In family-owned businesses, it is common for the business leader to stay in position for an extended period, with only life events such as retirement, illness or death being the cause of change in the leadership position. This makes way for leadership longevity and stability – both being crucial factors for the smooth functioning and success of the business, evolving continuously, and being more sustainable and ethically responsible.

Shared Values

Shared values hold the key to unlocking unprecedented innovation and growth, paving the way for the company’s success. Differences in ethos and ways to run a business lead to disputes and conflicts obstructing the company’s growth.

This is not the case in most family-run businesses, as members of the same family are likely to hold the same values, philosophies, and beliefs on how things should be done. Having shared values makes it easy to align team members’ views and gives everyone a sense of purpose and belonging.

Commitment

Commitment shapes a business’s identity by defining its strengths and weaknesses, establishing opportunities and limitations, setting its direction, and focusing on energising team members.

Family businesses have a stronger sense of commitment, accountability, and dedication as it is not just the business at stake but the needs of individual family members. The desire to keep the business and family strong makes way for additional benefits like a better understanding of the industry and the competitors, more robust customer relationships, and exceptionally efficient business processes and systems.

A famous example is the story of how the Ford Motor Company managed to hold its ground during incredibly tough economic times while other competitors like Chrysler and General Motors suffered significant financial losses. With the Ford family’s reputation and business on the line, their fighting spirit bolstered, resulting in the company being more resilient and persevering.

Trust and Authenticity

Research by the American Psychological Association (APA) states that business partners who trust each other spend more time working on impactful things important to their business rather than protecting themselves and being too self-indulgent. Thus, trust is fundamental to the success of any business.

The foundation of every family is trust and unconditional love, as are family-owned businesses. Inherent trust among family members allows for the open discussion of opinions and disagreements among the leading members. A greater sense of trust gives everyone more space for authenticity and results in an easier flow of business ideas. A culture of trust and authenticity can lead to personal and professional growth and the company’s overall development.

Flexibility

Flexibility is vital for a company’s culture as it builds trust and loyalty and fosters happiness. No one likes to work with their bosses looking down on their noses. An uptight and inflexible working culture leads to unhappy and unmotivated employees and hampers the business’s productivity.

It is common for non-family businesses to have clearly defined responsibilities for their role. However, working with family allows a lot of flexibility. Family members are comparatively more willing to take on roles and tasks outside their designated workloads and ensure that the job gets done — the greater sense of flexibility and willingness to give more than expected drives continuous improvement and business growth.

Vision and Long-term goals

In a family-owned business, employees are united to a common goal and tied by a shared sense of purpose and motivation to ensure the growth of the business and family. As members of the same family with shared values and goals, everyone in a family-run business work towards a common vision and long-term goals.

Keeping the needs of the family in mind, family-run businesses draw up long-term goals, thinking and planning for years or even decades. This perspective of long-term vision and outlook allows creative decision-making and strategy development. Reducing the pressure to come up with monthly reports, and removing unnecessary red tape, the focus is redirected to utilising resources for projects that benefit not only the company but also the family in the present all the way into the future.

Growing together as a business and family

Running a family business has many advantages like stability, shared values among the members, flexibility, common vision and long-term goals, trust, and commitment. Thus, at The Hamper Boutique Co, we pride ourselves on running a family business and strive to continuously grow and develop while fostering compassion and empathy towards each other.