Why family businesses shouldn’t run like the one on Succession
The COS research revealed that 41% of males were more open to starting a family business compared to their female counterparts.
Family businesses ruled the roost in 2021 with such ventures representing 67% of all Australian companies, however, new research has revealed that only one in three Australians would start a business with someone from their family.
The study, which was commissioned by Australian-owned and operated national office product company COS ahead of National Family Business Day this month, revealed that the main reasons why the majority of Aussies these days would never consider starting a business with a family member were concerns with mixing family and business and arguments within the family.
From the 1000 Australian workers surveyed, 50% said “you shouldn’t mix business and family”, while 32% said “it would be too hard to separate the two” and 20% cited constant arguments as the cause for their decision.
COS co-CEO Belinda Lyone, who runs the over $300 million company together with her sister Amie, after it was founded by their father Dominique Lyone in 1977, spoke with SmartCompany about how both she and her sister strike a balance when it comes to business.
Lyone said the future of Australian business is bright and essential to the Australian economy and its backbone.
“Our research shows that people love working for an Australian business,” she said.
“It also shows that 82% of Aussies like buying from an Australian business to support the economy and Australian families.
“In addition to being vital to the economy we know Aussie companies are more conscious of their environmental impact and the research shows that two in three Australians prefer to work for a company that cares about their impact as well.
“Sustainability is important. We know that family-owned businesses do it better and it is also good for attracting employees who prefer to work for a company that cares about the environment.”
The COS research also revealed that 41% of males were more open to starting a family business compared to their female counterparts, and 25-34-year-olds were the most likely age group to start a family business.
Lyone said being part of a family-owned and operated company shouldn’t be like an episode of Succession, in fact, quite the opposite.
“There is something extremely special and rewarding about working in a family-owned and run company,” she said.
“Whether you are part of the founding family or an unrelated employee, working for a company that has a strong sense of values, its mission and vision, and one that is able to prioritise people over profit, are just a few of the positive drawcards.
“I’ve now been in the business for 17 years, but I still remember those early days well, and it wasn’t easy.
“In our family it’s a rule that you must work somewhere else before entering the family business, and I’m thankful for that as it has helped my confidence and made me realise which parts of running a business I was most passionate about.
“Often people think that taking the reins of a family business is an easy route, but it definitely comes with great pressure and responsibility, so it’s not a decision or opportunity that should be taken lightly.”
Lyone said such businesses have all the challenges that a normal business has but in addition to the management of the family dynamics and direction alignment.
“But that passion creates a great place to work in a business that focuses on the long term with a deep care for their customers,” she said.
“Studies from KPMG have shown that family businesses provide about 85% of Australia’s private sector employment. This means that if you aren’t working for your own family business you are quite likely to be working for someone else’s.
“Andre Moody, CEO of FBA is quoted to say: ‘Family businesses tend to have a long-term perspective, focusing on the legacy and sustainability of the business across generations. They provide stability and a sense of security for employees’.”
“Whilst family businesses are facing the same challenging economic times as all businesses, we know that family businesses tend to focus on the long-term perspective and will be continuing to focus on creating long-term value for their customers and employees.”
Lyone said some strategies behind launching or continuing a family business are being clear about the purposes of the business.
“Why does the business exist and is the family all aligned on the big purpose or reason for the business to exist?” she said.
The key is focusing on great service and deeply understanding how to help your customers,” she said.
“Creating a culture where employees can pass on their passion and care to the customer.
“Focusing on the long-term investments into the business, as well as having good structure and professionalism around the family’s involvement including clear rules and communication platforms.”
