They say you should never mix business with pleasure, but a new study suggests that families who go into business together have a higher rate of success when times are tough.
So what is the secret to a family business that strives when the economy takes a dowturn? It could boil down to the fact that with a family business, the parties involved have a personal vested interest in seeing it succeed. They are not in it for a quick payout. The business truly means something to them and to their children, whom they would potentially like to pass it on to. This is why many family businesses focus on survival instead of profits during tough times, and this could be the key to their longevity.
Michael Rainville is the owner of Maple Landmark, a toy company based in Vermont that employs many of his immediate family members. As he explains to the Huffington Post, “I don’t have grand expectations. I don’t have a Volvo payment before I pay my payroll. This is what we do. It’s my sandbox, I enjoy it, I don’t want to see it go away.”
The frugal, don’t-spend-more-than-you-need-to kind of thinking is exactly what the economics doctor ordered. The big companies should take note.
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