The family business concept still dominates the entrepreneurial landscape. As we near the year 2022, our image of a startup may be a tech-savvy individual coding an application alone in their basement. However, family businesses are still the most common economic ‘entity.’ Some studies estimate that around 80% of all businesses in Canada can be categorized as “family-owned”.
It’s important to note that the definition of a family-run business is broad. A mom-and-pop store could qualify, or the Walton family could own 50.8% shares in one of the largest corporations, Wal-Mart Stores, Inc. A family-run company can be hard to define because of the wide disparity between these two definitions.
For our purposes, however, we’re talking about family-owned startup businesses that are based on partnerships among family members to get the business off the floor. Technology can be used to help you get your business off the ground, whether it’s selling groceries, operating a restaurant, or starting the next big thing in your garage. Tech is often seen as being antithetical to a traditional family-run business. Thankfully, this is changing.
Here are some ideas on how to adapt your business.
Recognize being family-run as a secret weapon
For decades, many businesses proudly wear the label “family-run”, putting it at the forefront of their marketing. The idea of a “family-run” business is meant to instill a sense of trust, detail-oriented, etc. It’s not always easy to marry that idea with technology. The key is to place family values at the forefront. It doesn’t have to be literal. But announcing these values, such as taking care of your employees, giving a face to your business, and providing good customer service is advisable. Your business can stand out from the competition in the online world by promoting these values. Some modern brands like Uber and Airbnb are very successful. Both are extremely successful but (with due respect) they also lack a face. They are more like networks than companies. There is no central authority that deals with customers. Customers are often critical of these brands and they’re open to a more personal touch from a family business.
Do not fight technology, embrace it
In the early 2000s, eCommerce was the biggest threat to physical stores. Amazonification of the business ate everything, from clothing shops to tool depots. Those who survived eventually prospered as they realized that eCommerce wasn’t a fad. Bouclair, a furniture and home décor chain, is a good example. The privately owned company, founded in 1970, has dozens of stores throughout Canada. Its agility was a concern, but unlike other businesses of a similar nature, it flourished, because it understood that online and in-store shopping can coexist. It launched a successful, online platform in addition to its physical stores. To see the eCommerce site as it appears today, you can Click Here.
Predict the next wave in technology
What are the threats today, if our Bouclair example showed how businesses could weather the eCommerce storm? Just because you’ve got a social media page or a website doesn’t mean that technology will not disrupt your business. Take, for instance, the advancements in AR/VR. A clothes store offers an advantage over online sites because people can try the clothing on. Snapchat, the social media platform, launched AR capabilities last year. It partnered with brands such as Amazon to allow users to virtually try on clothing. The technology is still in its infancy but clothes retailers should at least explore it.
Harness the global talent pool
A family business’s strength – its reliance on caring people – can also be its weakness. You might think it’s logical to have your tech-savvy in-law develop your app. However, there may be people waiting online who are more suited. We mentioned family-owned businesses at the start of this article. However, that has now been offset by the legions working in the gig economy. Upwork, Freelancer.com, and Fiverr have millions of freelancers who are ready to compete for small jobs. These can range from creating a logo for a hair salon, or helping with SEO so your restaurant appears on the first Google page.
