The goal of any business is to become as successful as they can be. However, when it comes to global expansions, did you know that family businesses often have the biggest chance of success?
Here, we’ll look at why family businesses are ideal for going global.
Why are family businesses more likely to succeed?
When it comes to international expansion, family businesses tend to operate slightly differently from non-family companies. This is thought to be because family businesses have motivations other than just the economics of the company.
When a business has been within a family for years, it’s built on a wealth of experience which is passed down through the generations. Each member within the company is a lot more committed to its success due to its sentimental value. The additional motivation and commitment are a large driving force behind international growth.
Another reason family businesses often see more global success is because they take it much slower. Gradual growth is much likely to equate to long-term international success.
How to expand a family business
Although family businesses do have a higher chance of succeeding globally, they still face a lot of challenges when it comes to expansion. If you’re looking to grow your business, there’s a few things you’ll want to consider.
Firstly, you’re going to need a good level of capital to expand on a global scale. If you don’t have a large lump sum available, it may be worth looking into getting ecommerce business loans. Provided you can comfortably make the repayments, a business loan can help you to set up the company overseas, enabling you to start making much larger profits.
You’re also going to need to make sure everyone is on board with the expansion. If even just one family member isn’t on board, it could cause a lot of issues for the business. Make sure everyone knows why the expansion is important and what is expected from everyone during the growth phase.
If you need to hire additional employees, you’ll need to make sure they share the same values as the business. Taking on non-family staff can be risky, but only if you don’t take the time to ensure they’re a good fit for the business. Even if a candidate seems qualified, never hire them unless you feel they’d be a good fit for the business.
As you can see, family businesses do have a much greater chance at being successful overseas. However, you will need to consider and address the potential challenges involved. Making sure you have enough money for the expansion, as well as the commitment from the entire staff, are just a couple of challenges you’ll need to work through.