All entrepreneurs long for sustainable growth and explosive success. Whether we own a small family business, a startup, or a mid-to-large size company, our businesses are the tangible culmination of our vision, values, and passion.
From a thriving workplace culture to the nourishment of emerging leadership to developing business strategies that support a forward-thinking growth mindset, a multitude of factors play a role in business success.
Although it’s easy to understand the direct correlation between talent acquisition or a strategic business plan and stable, sustained growth, there are other vital factors that play a large role, too. For example, the impact of family and friends on business growth and stability cannot be overstated.
The positive (and negative) aspects of our most important personal relationships can contribute to, or hinder, the ways in which we grow our businesses. It’s important to leverage these relationships, and dig into the internal and external factors that influence our business vision and ability to transition into exponential stages of growth.
Factors that facilitate stability and growth in business
Just as family and friends can either propel your business forward or hold you back, many other factors can play into the stability and exponential growth of a company. Great entrepreneurs still make mistakes — they just learn to course correct and grow as a result of these missteps.
As William Durant, the co-founder of General Motors, once said, “Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.” You may need to course correct, but understanding the influences of business growth, including friends and family, will allow you to create a strategic business plan and move beyond mistakes.
Here are several factors to consider for sustainable business growth:
- Client satisfaction:
Engage with your clients or customers. Address their pain points and cultivate specific customer journey mapping methods. Allow them to engage and give feedback. Above all else, make them feel valued. Satisfied clients become loyal clients and customer retention is the cornerstone of business growth and stability.
- Well-defined growth goals:
Include even the smallest business objectives in your strategic growth plan. Ensure your team understands the steps needed to achieve these goals. Celebrate even minor successes to bolster growth.
- Develop a growth mindset:
Encourage brainstorming, collaboration, and different perspectives among your team members. Cultivate a growth mindset by embracing necessary changes. Stay on top of industry and market trends. Never get complacent or comfortable.
How family and friends positively impact professional success
For entrepreneurs launching startups or expansions, the impact of family and friends can be a key difference maker in business growth and stability. Emotional and financial support from your loved ones can help you establish your reputation, grow your professional network, and help you to weather the storms of the market.
Here are some of the ways you can incorporate family and friends in your business growth plans:
- Allow loved ones to invest in your business:
Acquiring funding from your family and friends can give them a vested interest in your business. However, it’s important to ensure that loved ones who you allow to invest are supportive of your mission, vision, and values.
A 2020 Clutch survey found that 22% of entrepreneurs launching startups receive financial support from family and friends. Don’t be afraid to ask for funding and engage your loved ones in the progress of your business.
- Lean on family and friends for emotional support:
Even the most successful entrepreneurs face challenges and setbacks when opening a business. Friends and family can help you to maintain a balanced perspective, hold you accountable to your growth goals, and lend you the emotional stability you need personally in order to move ahead professionally.
- Partner with loved ones for forward growth:
Currently, family businesses account for 1 in 3 Fortune500 companies. Partnering with people you trust and who know you well may lead to business growth and consistent stability.
According to the PwC 2023 US Family Business Survey, 86% of family businesses anticipate sustained growth for the next two years. 78% of family-owned companies consider the business the most important family asset.
If your family members or friends have expertise in your industry, or share your vision for your business, inviting them to play a role in your business may help bolster stability and growth.
- Intentional work-life balance:
When you’re passionately dedicated to growing your business, it’s easy to get consumed by your work. Intentionally scheduling time with your family and friends can help you to step outside of professional life, reenergize, and spend time with the people who matter the most to you.
Spending time with loved ones can help to reduce professional stress, prevent burnout, and offer you much needed perspective to allow you to overcome business growth challenges.
- Utilize personal relationships to professionally network:
Entrepreneurs can also turn to their family and friends to grow their professional networks. Your loved ones may be able to connect you with industry leaders and networking events that you wouldn’t otherwise access.
Draw on the wealth of varied experiences your family and friends possess. For example, your older sibling may be a successful leader in their respective field and can share insights into business expansion and how to maintain stability as you grow your ROI (Return on Investment) and business revenue.
- Gain honest feedback and accountability:
The most successful entrepreneurs don’t surround themselves with “yes” people. Rather, they ensure that their trusted leadership team and inner circle will share hard truths and hold the business accountable to strategic plans and core values.
Ostensibly, your loved ones can share feedback and constructive criticism that others cannot. Asking your family and friends to contribute feedback can keep you open to necessary change, and can keep you accountable to following the detailed plans you’ve created.
- Receive encouragement to facilitate growth:
The people we love are often our greatest cheerleaders. They believe in our vision and see a path to future growth. By sharing your business plans, triumphs, and setbacks with your family and friends, you may find you receive the confidence boost and encouragement you need to actualize business growth.
How family involvement supports successful US businesses
Pride can stand in the way of successful entrepreneurship. You may want to prove to those around you that you can succeed without support from loved ones. However, many successful US businesses grow and enjoy stability by building a foundation formed by these relationships.
If you choose to create a family-run business, you may also enjoy benefits that give you an edge over the competition. Here are some statistics you should know:
- 38% of startups raise money from family and friends (US Small Business Administration)
- Annually, US businesses raise over $38 million in funding from friends and family
- 64% of the national GDP (Gross Domestic Product) is generated by family businesses
- 90% of North American companies are family-owned
- Talent retention is significantly higher in family-owned businesses than in their competition
Family and friends can have an enormous, positive impact on your business growth and stability. If you’re hesitant to lean on your loved ones for professional help, remember that the most successful entrepreneurs surround themselves with a supportive team of growth-driven people.
If you’re considering launching a startup or a family-run business, your loved ones may become your greatest asset. The tumultuous market can prove daunting for every type of business owner. However, by leaning on those you trust the most, you may find you’re better equipped to handle business challenges.
Ryan Niddel is the CEO of MIT45, serves on the board of multiple 7-figure (and beyond), successful companies, and is considered Ohio’s top growth specialist. If you’re ready to unlock your full potential, take your business to the next level, experience exponential revenue growth, and utilize breakthrough thinking to transform your company, connect with Ryan today to schedule a free consultation.
