With more and more startup companies in the manufacturing sector, most of these SMEs are managed and run in close partnerships or by several members of the same family. Officially being defined as a company where one family has at least 50% of the voting rights, or more than 20% of voting rights and significant influence over management and/or directors, family owned businesses have increased globally by 345% in the past ten years. The manufacturing sector has followed this trend too, and family owned companies seem to be thriving in the UK, especially in the Midlands, which is becoming a central hub of manufacturing and engineering again. Our experts have suggested a few reasons why these types of business are doing so well.
Family members are likely to share the same core value systems and incorporate this seamlessly into their business models. By sharing the same fundamental principles, there is no time wasted arguing or discussing values, instead families tend to work together sharing the same goal. Whether this be values surrounding business transparency, or commitment to sustainability, it is likely that the customers will be able to notice the unity surrounding the manufacturing business, which will have serious benefits such as increased brand reputation and repeat customers.
Attempting to build a lasting family enterprise from manufacturing may seem difficult at first, but families who have started a business are extremely committed to their company. Putting in the additional hours, and spending extra time, money and effort on your business will be noticed by customers. The end result of combined family commitment will be a functioning, growing business that works hard to satisfy their customers. This is also reflected in the additional pride families have in their product. By only accepting and then selling the best quality product, clients can be sure they are getting exactly what they pay for.
By having different generations of the family working together on the same project, businesses can ensure that they don’t lose touch with the youth market, fashions and trends, while ensuring that this information can efficiently be incorporated into the existing business model. The synergy between different generations of family members means that manufacturing businesses are really becoming 21st century businesses. This can best be seen through the growing presence of manufacturing businesses on social media platforms, allowing them to reach a wider customer base. This has the added advantage of allowing customers to directly interact with the company and really get a sense of their branding and core values, giving them greater information when making a choice of which manufacturing business to use.
Family directorship means better governance
Companies that are run by families tend to have better overall company governance. They are less inclined to take large risks, instead focusing on smaller, long term gains. Outside directors have little personal investment in companies, whereas anything family run will obviously be essential to the well being of that family, resulting in more caution and often better decisions being made. As such, a stable company will offer consistency to their customers; there are unlikely to be wild price fluctuations, manufacturing delays, decreases in quality or problems with customer service. As such, clients can make long terms plans with family owned manufacturing businesses, knowing they are working with a stable partner.
Internal business loyalty
Working together with family members in a business environment is ideal, as the family unit forms a grounded and loyal foundation on which the company can develop and grow, especially as family members will be far more dedicated to their common goals than outside directors would be. Having an intimate connection with the other business owners provides a strong support network, guaranteeing solidarity and excellent teamwork. This means the business owners will remain strong through any difficult times, and customers should be shielded from this.
Focus on customer satisfaction
Family businesses, especially those in the manufacturing industry, will try to encourage repeat customers, to ensure long term stability. This means they will offer every single customer the best quality service in the hopes of gaining their repeat business. If any problems arise, family owned businesses tend to be far more engaging with customers in attempting to identify and solve the problem, as well as taking steps to ensure that similar problems will not occur in the future. Even if you are a one-off customer, having this excellent service will make your business dealings far easier, and a smile from them should definitely brighten up your day!
Subcon Laser is a family run business and, as this article suggests, our company values reflect our own family values. We ensure that we provide all of our clients with high-quality laser cutting services, with emphasis on giving the best customer service possible. For more information, or to get a quote, please contact us on https://www.subconlaser.co.uk/contact-us/