RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

4 Reasons It Pays to Work With a Family-Owned Business

Home Agents
Commentary by Michael Minard
May 24, 2022
Reading Time: 2 mins read
4 Reasons It Pays to Work With a Family-Owned Business

If you had to choose a real estate technology solution from three different firms—one company is VC-funded, the other listed on Wall Street and the third family-owned—who would you pick?

Clearly, you would need more information…but in this case, the best choice may not be the obvious one. However, the choice is easy.

I’ve been on both sides of the fence—as a venture capital investor and owner of Delta Media since 2000. And I’ve learned that family-owned businesses have a slew of built-in competitive advantages over firms funded by VC or Wall Street.

Here are four reasons why a well-run family-owned business is your best pick:

  1. Business focuses on the client versus growth. Firms with outside funding must make growth their top priority. That often means growth for growth’s sake, which is often the wrong business decision for your clients.

Family-run businesses—the kind that Warren Buffett buys—place their focus on the client. Outside funded firms have two masters, which blurs client focus, but when you zero in on being a “people-first” business, growth will come naturally.

Forced growth is typical among VC- or Wall Street-funded firms. Think about companies’ decisions when growing rapidly (for example, Zillow). Family-owned businesses are legendary for providing the best customer experiences because of their focus. Just ask Mr. Buffett!

  1. Independent versus dependent. When’s the last time you heard a VC- or Wall Street-funded firm guarantee they will not sell—ever? Only a family-owned business can make that promise.

As we have recently seen, economic conditions can turn on a dime. Funding can disappear. Profitable, well-run, family-owned firms are the ones that survive.

  1. Industry management versus forced management. We’ve seen this repeated throughout the history of VC- and Wall Street-funded firms. Investors or investment decisions take over if things get tough. New leaders with no proven experience in this space take control and start calling the shots.

I’ve said it before: pressure comes with checks. The leader of a family-owned business typically has a decade or two or three of experience.

  1. Company loyalty versus a high churn rate. VC firms are notorious for high employee and client turnover rates. Family-owned firms are bedrocks of stability, with employees and clients who stay with a firm for years.

VCs have an exit plan—and believe me, those plans are not created based on what’s in the client’s best interest. Ever notice how VC firms tout that they’re run by “serial entrepreneurs”? But what does a perpetual short-term view cost clients?

Bottom line

A family-owned business can make decisions quickly and pivot instantly. Despite the hype, that’s not true for VC- and Wall Street-funded firms. Every independent real estate broker/owner in the U.S. can relate. It’s why family-owned businesses win.

For more information, visit https://www.deltamediagroup.com/.

Michael Minard is CEO and owner of Delta Media Group, a leading and trusted technology partner for many of real estate’s top brands, and 100% family-owned and operated.

Tags: Delta MediaFeatureMichael MinardReal Estate Technology
ShareTweetShare

Michael Minard

Related Posts

Break a Leg: How Acting Techniques Can Enhance Your Pitch
Agents

Break a Leg: How Acting Techniques Can Enhance Your Pitch

June 26, 2022
Thoughts on Leadership: Beyond the Good or Great
Brokers

Thoughts on Leadership: Beyond the Good or Great

June 26, 2022
One-of-a-Kind Houston Penthouse Sells for $6.9 Million
Best Practices

One-of-a-Kind Houston Penthouse Sells for $6.9 Million

June 25, 2022
Headliners Week of 6/19 – 6/25
Headliners

Headliners Week of 6/19 – 6/25

June 24, 2022
Harvard ‘State of Housing’ Charts Path Forward
Agents

Harvard ‘State of Housing’ Charts Path Forward

June 24, 2022
New Home Sales Unexpectedly Rise Sharply in May
Agents

New Home Sales Unexpectedly Rise Sharply in May

June 24, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

4 Ways to Get Ready for the Summer Market

From leveraging the sunshine in your networking to dropping FaceTime for actual face time with clients, here are a few... Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Break a Leg: How Acting Techniques Can Enhance Your Pitch
  • Thoughts on Leadership: Beyond the Good or Great
  • One-of-a-Kind Houston Penthouse Sells for $6.9 Million

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.