Monday, 4 March 2013

Lessons from Brazil’s Family Businesses

Brazil is one of the nations expected to pioneer the next set of developed countries. Everything looks set, and as country with 85% small and family businesses in its economy, there are few things entrepreneurs can learn from their family businesses.

You have to establish a proper leadership structure.
To run your business successfully, you will need to put up a leadership structure or hierarchy whether you have employees or not. Take yourself as the first employee, and act like you have a boss that you are answerable to. This will help you to maintain an organizational structure such that as you grow and bring in more people, they can easily fit into their positions. A well-defined hierarchy is essential; otherwise your efforts may become a mess

Be more Adaptable
One great advantage family businesses have is that they can easily adapt in a crisis compared to a company managed by a board, where you have to consult other people and get approvals for everything.
Being adaptable means you are more focused on long term growth of your business than short-term. You are quick to change as situations change.

Technology is key
You cannot leave aside technology improvements in your company. Look for latest technology that your industry is adopting and follow suit.

Maintaining traditions
Business growth is always a goal, as long as the tradition that brought the business to where it is maintained. Sometime there may be pressure by other stakeholders on your business, however, remember that you don’t change a winning formula until it stops wining.

Don’t run your business on emotions. Always get the best hands to advice or work for you. Don’t hire someone because they are family members. Bring someone on board because there is a value they will add to the business.

Succession issue
Always have in mind that your business is going concern, it is expected to continue as long as positive.

These are few tips some family businesses have practiced in growing their company.

Culled from BBC Business News

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