Why family-owned businesses require a unique approach to marketing

How to strategically manage marketing in a family owned business

In the UK, there are approximately 5.45 million small businesses with 0-49 employees according to the Federation of Small Businesses 2024, this makes up 99% of the total business population. Small and medium-sized enterprises (SMEs) account for around half of the turnover in the UK private sector. Family businesses form a significant part of this landscape, each with its unique challenges and opportunities especially when it comes to business strategy and marketing.

Marketing a family-owned business is always interesting

The individual goals, responsibilities, and ambitions can be all over the place. It’s definitely a challenge. However, with the right approach and a simple strategy, you can get everyone on the same page. When everyone is pulling in the same direction and working towards both business and personal goals, the business achieves its objectives. Plus, the magic happens when the team works together, leading to additional wins and even better outcomes.

Taking the team with you on the journey from the outset is key to success.

Getting family members to agree on business and marketing goals can feel like herding cats. Achieving alignment is crucial.

Here’s why marketing a family-owned business is tough and how you can achieve goals together…

1️⃣ A simple marketing strategy gets everyone onboard from the outset

The first step in marketing any business is to build solid foundations. This means getting everyone involved from the start. You want everyone to feel heard and to see they have inputted into the strategy – a shared effort. When they feel valued, they work together to make it happen.

The goal here is to ensure everyone understands the objectives, takes responsibility for their actions, and tracks the results. By working together the team can achieve the goals of the business as a team. This approach not only aligns everyone with the same objectives it also fosters ownership and accountability for a goal-led approach to marketing.

2️⃣ The challenge of penny pinchers vs. spenders

In every family business, there are penny pinchers and spenders. Penny pinchers always look to save money, spending as little as possible. Spenders, on the other hand, are happy to take risks and invest to make more money. This dynamic often leads to heated debates, especially in a family setting. Finding a balance between these two perspectives is crucial.

A well-thought-out marketing strategy can bridge this gap by showing how a strategic approach will achieve great value for money and significant returns. When everyone sees, hears, and feels the difference, the value that marketing can make, even the tightest penny pinchers struggle to ignore it. And honestly, overcoming this particular challenges is one of the best rewards on both a personal and business level.

3️⃣ Managing multiple managing directors

One of the biggest challenges in any business is managing people, this is especially true in family businesses. Each family member might have their own vision for the business, not all will align. This can lead to conflicts and power struggles.

Managing people effectively is unavoidable, so it’s crucial to get good at it. The key here is to establish clear roles and responsibilities from the start. Regular meetings and open communication are essential to making sure everyone is on the same page and working towards the same goals. Always get agreement from the majority and document this.

4️⃣ The Benefits of a Fractional Marketing Director/Manager

Hiring a fractional marketing director or marketing manager can be a game-changer for a family-owned business. This professional can execute the marketing strategy and plan without the full-time commitment and cost of a permanent hire to the family business. They bring in expertise and experience when it’s needed, providing the business with the skills to succeed. A fractional marketing director or manager can also help navigate the complexities of family dynamics, ensuring marketing efforts are consistent and effective.

One of the main benefits of an outsourced marketing director/manager is that each person within the business can focus on what they do best. With a fractional marketing director handling the marketing strategy, family members can concentrate on their own areas of expertise, leading to better overall performance. The benefits are numerous, including cost savings, flexibility, and access to specialised skills.

5️⃣ What success looks like in terms of Return on Investment (ROI) and business goals

Measuring marketing success in family-owned business is done by ROI and the achievement of business goals. This means tracking key performance indicators (KPIs) and regularly reviewing the results – ideally on a monthly and quarterly basis to ensure achievement of goals. Along the way, it’s important to celebrate the wins, no matter how small, and learn from the lessons. By continuously refining the marketing strategy based on what’s working and what’s not, the business can achieve its goals and see a positive return on investment.

Achieving business goals in a family business requires a clear strategy, consistent effort, and a willingness to adapt.

Winning tips for marketing a family business

To succeed in marketing a family-owned business, it’s essential to set aside personal opinions for the good of the business and its customers. This means making decisions based on data and market research rather than personal preferences. It also involves being willing to compromise and sometimes putting the needs of the business above individual desires.

By focusing on what’s best for the business and its customers, family members can work together more effectively and achieve better results.

Here are some tips for marketing family-owned businesses:

• Establish clear roles and responsibilities from the start to help avoid conflicts and ensure everyone knows the part they play

• Use data to drive decisions as this removes personal biases and focuses on what’s best for the business

• Communicate openly and regularly to keep everyone aligned so issues can be addressed promptly

• Be willing to compromise by balancing different perspectives. Finding that middle ground is what benefits the business

• Focus on the business and its customers. Keeping the business goals and customer needs at the forefront ensures that personal opinions do not overshadow what’s best for the business

By following these tips, family members can work together more effectively, leveraging their unique strengths and perspectives to achieve better marketing results.

Conclusion

Marketing a family-owned business is not for the faint-hearted, it is incredibly rewarding though when you overcome those unique challenges.

By creating a simple marketing strategy, finding balance across multiple managing directors, and reaching consensus with the help of an external marketing consultant, family businesses can achieve great marketing success and achieve their business goals.

Remember! It’s all about working together, staying focused on the goals, and having fun along the way. After all, family is at the heart of the business, and this is what will make it work better in achieving results, building on what’s unique.

People love to do business with family businesses. Why? They know they care.

Anna Short. Managing Director and marketing strategist at Boo! Marketing has worked with numerous family businesses within professional services, engineering, technology and marketing, helping them to align their marketing strategies with their unique dynamics. With the right approach, family businesses can thrive and achieve remarkable results.

Are you a family-owned business that’s struggling to get focused and consistent with marketing your business in a unique way? Get in touch or email Anna: anna@boo-marketing.co.uk

Marketing is a central function of every business, treat it that way to make sure your business is generating enquiries, leads and sales every single month. With a bespoke marketing strategy followed up with an action plan your marketing will generate new business as well as take care of existing customers and clients.

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