Family-owned businesses may come in all shapes and sizes, but the most successful ones all seem to adhere to a set of management tactics and traits that any company, regardless of ownership, would do well to emulate. Here are three key lessons to take to the bank.

Lesson 1: Create a succession plan - now.

It may seem odd, but the best-run family businesses develop leadership succession strategies early on – sometimes before they even open their doors. These business owners understand that succession planning isn’t all about getting out; it’s also about getting ahead.

With a clear succession roadmap, family executives can make strategic investments in the leadership skills of their successors throughout their tenure. In fact, many family businesses make considerable investments to ensure sound apprenticeship practices. Family-run companies survive the decades only when the older generation patiently teaches the next, passing along principles, knowledge, expertise, and personal networks over the course of many years.

A formal succession plan can provide a solid base for any company’s leadership pipeline. When managers are constantly groomed for succession, their contributions become more valuable, and they tend to stick around longer. In contrast, companies that ignore succession are sometimes forced to conduct hasty candidate searches, which can endanger the company’s continuity, momentum, and hard-fought equity in their vision.

Lesson 2: Practice patience and prudence.

In addition to leadership, high-performing family businesses also invest patiently in their core competencies. Through market fluctuations and economic downturns, they remain steadfast to the products and services that made them unique in the eyes of their customers. Over time, this unwavering commitment can pay off handsomely.

Prudent asset management is another noteworthy trait of successful family-owned companies. Typical traits include an aversion to debt, a commitment to maintaining sufficient operating capital, and a plan for long-term survival. They aggressively conserve resources, guard profits, and build to last. When sacrifices are required, family members often provide free labor or emergency funds to keep the venture solvent. 

Companies wishing to bolster their long-term financial outlook would do well to adopt the brand of fortitude, stamina, and stewardship demonstrated by the best of family-owned organizations.

Lesson 3: Find a purpose beyond profits.

Founders of family-owned companies typically envision a higher purpose for their organizations than simply making money. This often comes about as justification for the long hours and economic insecurity that startup business owners must endure.

As a result, the founding family’s belief system is often imprinted into the company’s culture, and employees are driven by a shared set of values. This can translate into a cohesive sense of purpose that leads to customer loyalty and longevity.

The best-managed family businesses aren’t passionate about making widgets; they’re obsessed with helping people live better, fuller, more satisfying lives. Great widgets are simply the demonstration of the company’s commitment to the vision of its founders.

For employees of any company, a well-articulated purpose that goes beyond maximizing profits can provide a more rewarding incentive to help the business thrive.