FAMILY COMPANIES AREN’T FOR “YUPPIES”

More than half of all businesses are family-owned. They represent a significant percentage of society’s economy.

There are both advantages and disadvantages to family firms. It all depends on your perspective. The advantage is that the owners are often active, make quick decisions and have passion for their business. In a way, they are the business – they give it a face and develop strong cultures and traditions based on a long term outlook and stability.

Family businesses often live longer. Indeed, in many ways they have an eternal perspective. Often, the family wants to hand over the company to the next generation in even better condition that before. Just as with farms in the past. This is why family firms have to be innovative – in order to create long term value.

There are a lot of emotions in family companies. It can be very demanding on family members. It becomes a lifestyle. You have to deliver – you have to be a good role model. Employees also become part of the family. This means that they can have influence and participation levels in a completely different way to in a traditional company.

In our company, we have women at the top. Mother and daughter – Christinah Nicolaisen and I – run the company. She is chairman and I’m the owner. We live with the company morning, noon and night. Discussions and decisions are taken at the breakfast table, at lunch and in the backseat of a taxi. Or in the elevator. And on planes, where we often get to have some peace and quiet.

And fortunately, we have a director and group management team who are specialists in their respective fields. People who take our input seriously and dare to give us honest feedback. Even when it hurts. Because they care and have a long term perspective.

Family companies aren’t for everyone. And that’s fine. It’s definitely not for the worst of the “yuppies” and career warriors who are after another title for their CV and short term bonuses…

My daughter Christinah and myself have discussions and make fast decisions.  

Her from a special business lunch.