Posting by:  Jacqueline Thompson
Date: January 19, 2010

Around the world, businesses have been handling the global economic crisis in a variety of ways, including downsizing, changing management, cutting bonuses, acquiring other businesses or being acquired, even closing down all together.  There is an element to the family business that is quite different from a non-family business, and it seems in these tough times, being family can be an advantage.

Positive Steps Everyone Can Take

There are of course some things every business could do to improve their bottom lines, at least in most cases.  This starts by doing those business processes that our Family Business Alliance is always nagging you to do – have a business plan and keep it updated; plan strategies; make a viable succession plan; use a Board of Directors or other outside counsel; know your differentiators, etc.  Ensuring you’re getting the best prices from your vendors, are using your resources most efficiently, are applying your marketing efforts to get the best results are all recommended.

Working Together in Tough Times: What Families Do Best

There were many tales of how families in the Depression together learned to appreciate the little things, how everyone including the children would take on odd jobs to help keep the family afloat.  This type of self-sacrifice for the greater good can be and has been applied to the family business.  Giving up bonuses to be able to make payroll; putting in extra hours without pay; working out compromises with employees so they can still work and perhaps meet other obligations such as providing in-house daycare; just letting your non-family employees know that they are also part of these efforts. 

Times like these can really put things in perspective.  A family, and a family business, learns what is really necessary and what can be put off, what qualities are most important for their friends and clients (e.g., a thoughtful holiday card and a reliable product at a fair price, instead of expensive gifts for show), and it is often discovered that those who stick by you during the tough times are the ones you can count on for life.  When things get better, don’t forget who was there for you when things were worse.

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