FEATURE
PAPER
Long
Life in the Family Firm: An Exploratory Study of Business
and Family Success
The
following paper was presented at the 2006 USASBE Conference.
It was written by John James Cater of Louisiana State University.
Abstract
The
family firm faces the dual challenges of pursuing success
in business and success in family life.
In this paper, I examine this duality using a qualitative methodology, revealed
causal mapping.
Moreover, in order for the family firm to achieve long life, the leadership of
the family business
must provide vision and direction to produce a quality product in an efficient
manner and to
overcome the effects of external forces, such as economic downturns and increased
competition.
While coping with problems common to all businesses, the leadership of the family
firm must also
overcome family problems, prepare the next generation for succession, satisfy
the older generation,
and plan for the succession to the next generation.
Introduction
This
study examines two companies as examples of long-lived family
firms: Kleinpeter Farms
Dairy, a milk processing company, and Kornmeyer’s Furniture, a retail furniture
business. By
looking in depth at the thought processes of the owner-managers of these two
firms, I have
identified some important elements leading to the survival and success of these
businesses, which
are relevant for all family business leaders to consider. Central to our understanding
is the concept
of the two-sided nature of a family business: the business side and the family
side. Within the
business side, the following themes resonate: the need for hard work, the importance
of quality
products, the requirement of efficiency in processes, and the relevance of involvement
in the
community. Outside forces, such as the economy and competition, are also acknowledged.
Then,
looking within the family side of the business, the study finds that leaders
must overcome family
problems, such as complacency, dissention, and reluctance to change. Family leaders
must train
and educate the next generation, while also providing for the retirement of the
older generation.
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the Entire Paper...
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Opportunity
Identification
Once a
list of skills/abilities and interest has been developed,
the next step is to examine the marketplace for opportunities
where they may be used in business. A form of GAP analysis
is recommended. In such an analysis, individuals identify
a gap or opportunity that appears to exist in the industry
specific market. The small business owner then must determine
if he or she has the skills and abilities to fill that gap.
IDEA CATEGORIES FOR POTENTIAL BUSINESSES
There are a variety of ways to identify such gaps or business opportunities in the market place:
1. Examine
trends around the region/nation/world that may not have reached
your particular location. Trends do not start uniformly.
In 2004, strong regional coffee chains sprang up throughout
the Midwestern United States. These chains started up by
understanding how firms such as Starbucks were achieving
success in major cities on each coast. These businesses achieved
a strong local position before the national firms could reach
those markets.
2. Interview and talk about opportunities with key successful entrepreneurs in the area. Most successful entrepreneurs are great sources for ideas that have the potential to be successful given the right set of circumstances and people. These individuals have a keen eye for what businesses are needed in an area based on their own experiences. Often, these individuals have too much to do with their own ventures to pursue other ventures themselves so they are willing to share their insights. The result is that they are more than willing to advise, identify, and perhaps even fund such opportunities for new entrepreneurs. In effect, they become a mentor to new entrepreneurs.
3. Discuss potential businesses with family members. Family members know your abilities and disposition. Furthermore, they are uniquely positioned to provide an honest perspective. If any family members have a small business of their own, they can be particularly useful in matching business ideas with your abilities.
4. Brainstorm with key entrepreneurs and family members. Brainstorming is a creative process where a group of individuals are brought together and asked to generate ideas related to a specific topic with little effort placed on evaluating the true potential for those ideas. In this case, the scenario might be one where a group is provided information on the skill set of the founder and asked to generate a list of businesses that might be appropriate. The interaction within the group leads to a dynamic process that can produce new, innovative ideas.
5. Take a look at the things that frustrate you and your family. Daily frustrations are an incredible source of ideas. How would you solve the frustration? What is it about the frustration that can be addressed? You will find that you might have as many as a dozen areas that could be improved, but only a few that do not need a unique technological solution.
6. Examine patent files. If the potential small business owner has an interest and skill set based on technological training, examining patent files could generate business ideas. Tens of thousands of patents that have never been the subject of a commercial attempt exist and are maintained by the inventors. An examination of patent files could uncover several areas of interest to the potential entrepreneur. The entrepreneur then contacts the inventor (all of the contact information is included with the patent) to see if he (or she) would be willing to work exclusively with the potential entrepreneur in the development of a commercial business.
| Charles
E. Bamford & Garry D. Bruton Small Business Management:
A Framework for Success Thomson South-Western
Mason, OH. 2006. p46-47. |
|
CONFERENCES
IPSI
|
| Who: |
Internet,
Processing, Systems, and Interdisciplinary (Research)
|
| What: |
IPSI
2006 - Slovenia
|
| Where: |
Lake
Bled, Slovenia |
| When: |
November
30-December 3, 2006 |
|
|
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USCPFA
|
| Who: |
US
China People Friendship Association
|
| What: |
2nd Annual China Symposium
|
| Where: |
Loyola University Chicago - Lake
Shore Campus |
| When: |
December 2, 2006 |
|
|
|
SES
|
| Who: |
Search
Engine Strategies - Incisive Media
|
| What: |
Search
Engine Marketing & Optimization
|
| Where: |
Hilton
Chicago - Chicago, Illinois, USA |
| When: |
December
4-7, 2006 |
|
|
|
AACSB
|
| Who: |
AACSB
Communications
|
| What: |
Lessons
for Aspiring Deans Seminar
|
| Where: |
Charlotte,
North Carolina, USA |
| When: |
December
9-10, 2006 |
|
|
|
ICSB
|
| Who: |
International
Council for Small Business (ICSB)
|
| What: |
World
Conference
|
| Where: |
Turku,
Finland |
| When: |
June
13-15, 2007 |
|
|
|
CALLS FOR PAPERS
CIJM
|
| Who: |
Cyprus
International Journal of Management |
| What: |
11th
volume, No.1, Autumn 2006 of the Cyprus International
Journal of Management
|
| Where: |
N/A |
| When: |
May
24-27, 2007 |
Submission
Deadline:
November 30, 2006
|
|
|
|
HIC
|
| Who: |
Hawaii
International Conference
|
| What: |
7th
Annual Hawaii International Conference on Business
|
| Where: |
Waikiki
Beach Marriott Resort & Spa, Honolulu Hawaii,
USA |
| When: |
May
24-27, 2007 |
Submission
Deadline:
January 19, 2007
|
|
|
|
IFERA
|
| Who: |
International
Family Enterprise Research Academy
|
| What: |
7th
Annual IFERA Conference 2007
|
| Where: |
European
Business School, Oestrich-Winkel, Germany |
| When: |
June
20-23, 2007 |
Submission
Deadline:
February 10, 2007
|
|
|
|
FHSU
|
| Who: |
Fort
Hays State University
|
| What: |
Annual
Business and Leadership Symposium 2007
|
| Where: |
Hays,
Kansas |
| When: |
September
26-27, 2007 |
Submission
Deadline:
September 17, 2007
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