Family owned and operated businesses typically fall into a category identified as “mid-sized” or “lower mid-market” in size.
This is usually understood to be a valuation of somewhere between $10 million to $50 million. -- Larger than what is considered to be a small business, (under $10 million), but still in certain business developmental stages, this group of business faces unique constraints and challenges.
Although no longer a “small” company, it is not as nimble in the marketplace as it used to be; and while bigger, it is not big enough to “command” its market share.
Often, a “mid-sized” company is battling for market share, and battling against larger competitors with better cost structures, and this is not all. The “mid-sized” company typically lacks management capabilities and other resources as well.
Financing is often a problem.
The business is too large for the owner to self-finance, but yet too small to garner a favorable banking relationship.
Finding and retaining top talent for key positions is another challenge. Having time devoted to building the business and not just working in the business is also a struggle.
Knowing what the next “best” moves are for family-owned businessses is challenging." Bert Floyd
Finding people who even understand your situation and the struggles you fight against is rare, and obtaining help is even harder.
From the outside, many businesses look more successful than they are. Customers, vendors and even the accountants don’t fully understand the real struggles that a business owner can face. While the business owner keeps all of the plates spinning, it is ever increasingly harder to do so.
There is a need for the business to self-govern with the owner acting as the sole true leader. The business owner must become good at building business systems and a management team. The owner must also be good at developing into a leadership role and concentrating on managing the “team” to run the business.
In short, the business owner must move from just looking successful to being successful.
Learn much more on this subject by downloading my free ebook, Fundamental Business Building Blocks.
Subscribe to my blog and I'll let you know when I launch new posts on how to build your business on solid ground.