Increasing innovation is one way Australian family businesses can remain a step ahead of their competitors and position themselves as unique.
In a global market where technology and ability to adapt quickly are paramount, simply keeping up with your competition won’t be enough to differentiate yourself. As Apple corporation’s founder Steve Jobs said, ?Innovation distinguishes a leader from a follower.
The recent Bentleys – The Voice of Australian Business survey indicated the top 3 reasons businesses were more confident in their sector were:
- Increased consumer awareness and knowledge about their services.
- Increased innovation.
- Growth in technology.
Traditional thinking would have us believe that family businesses are primarily tradition bound. In reality, this is not so.
Why family businesses are great innovators
Family businesses grow at their own pace giving them the opportunity to be more innovative and take greater risks than other types of organisations. Rather than being focused on satisfying shareholder returns in the short term, family businesses focus on long-term business success and longevity for future generations.
The unique dynamic of family business enables flexibility and quick decision making when opportunities present themselves. This is particularly important in a challenging global market.
Often family businesses want to provide customers with a positive customer experience. They value their brand (often their family name) and strive to deliver on brand ideals they know intimately.
How do you innovate?
Budding entrepreneurial spirit is one of the key drivers in establishing a family business. To drive continual innovation as the business grows, this spirit needs to be embraced and fostered.
Innovation does not have to be a brand new product or idea; opportunities exist in every product, service and process of the business. Some strategies your family business could consider to foster innovation include:
- see change as an opportunity
- encourage passion and curiosity
- develop a culture of innovation
- enhance existing customer offerings
- dedicate time for contemplation and discovery
- reward employees for new ideas
- celebrate successes and tolerate failures
- be prepared to listen
- encourage solution-driven thinking.
Australian family businesses may experience higher labour and manufacturing costs compared with global counterparts. But innovation and thinking outside the square is a family business forte. So if your family business is being stifled by competition, it could be time to stop competing and start innovating with key staff, family and customers joining you in the journey.