008: The Hidden Labor Trap for Family Businesses

There is a hidden labor trap that we see in businesses we support and we have identified the link between family businesses and nonprofits. 

Transcript

Welcome And Today’s Focus

SPEAKER_00 0:01

Hello, I'm Serena, and welcome to the Business Strategy Podcast. Today we're talking about the connection between family businesses and nonprofits. We've recently been exploring the connection between family businesses and nonprofits because we work with a variety of nonprofits and family businesses, and we've noticed a connection between the two that allows us to work more efficiently. So,

Family Labor Mirrors Volunteer Work

SPEAKER_00 0:26

first, we're going to discuss the labor connection between the legacy and mission of both nonprofits and family businesses. So, nonprofits depend on volunteer labor to get things done until they can become a staffed organization, similar to how family-run organizations are dependent on volunteer family members. There are family expectations of providing support to the organization out of obligation or mission, you would say, like in the nonprofit sense. And these expectations aren't necessarily the same reason volunteers are signing up to volunteer, but there's a similar external need to fulfill the mission that is there. And

Unmeasured Labor Warps Revenue Plans

SPEAKER_00 1:12

both external forces provide a consistent inflow of labor into organizations, which creates unsustainable revenue projections because if left unchecked, you have built in something into the organization that cannot be measured because it's irreplaceable or it's never been measured. And

Written Agreements Reduce Risk

SPEAKER_00 1:34

this is often where we come in. We equip leaders in these organizations with the skills to continue to leverage that built-in family support while remaining aware that the lack of clarity in written agreements in these relationships can be dangerous. So

Resilience That Turns Into Burnout

SPEAKER_00 1:51

both family-run organizations and nonprofits have a more deeply personal connection that leads to more motivated people, which makes everyone more resilient to challenges. But this can lead to cycles of burnout. And when you're aware of it, you can prevent it. So what does it mean if you're in this situation? Most

Document Support For Sustainability

SPEAKER_00 2:12

of the times it means having an abundance mindset and acknowledging that there will always be some amount of support from whether a volunteer or a family member, but acknowledging that you have to document it, otherwise, it will end pretty poorly. So we've enjoyed learning about this connection and thinking about

How We Help And Next Steps

SPEAKER_00 2:30

it. So we wanted to share as you're building out your business strategy. If you're part of a family-run organization or a nonprofit, we'd love to work with you directly to help you optimize how you are working and ensure that you have a sustainable growth strategy. Thank you for listening to the Business Strategy Podcast where we discuss words, phrases, and topics that are helpful for our clients and hopefully they can help you directly.