If the purpose of the education is to learn about life then it is imperative to learn about the impact of the three dimensions of the time, space and causality. Family Business is a microcosm of life, demonstrating the prevalence of each of these dimensions. Each family business has a unique context in which it has originated and as it evolved was affected and in turn affected the life around it. Thus, a study of Family business will give good insights about life.

As per Indian scriptures as humans we have three ‘shakti’s. It is Gyan shakti, Karya shakti and Ichcha shakti (will to know, will to do and will to desire). Each one of us have these shakti but in limited measure. Our constant endeavour should be to enhance all the three. The corresponding terms used in the education world is knowledge, skill and attitude. The study of family business will also give a good understanding of all these three.

Knowledge

Every business involves knowledge about various aspects of life. A study of the business will enable the students to appreciate the need for diverse knowledge in operating any business.

1. Each business is born to solve a problem in the world. A house person has a problem of getting fresh vegetables, of a diverse variety, in small quantities, near his/her house. The vegetable vendor knows about this problem and in his own way offers a solution at a price. Each business be it a vegetable vendor or be it a refinery like Reliance, must have knowledge about the problems and the solution. That is not enough. There are many others who also offer the solution and the business must know about them too. Thus, every business has the knowledge of the customer and the competition.

2. Offering the solution is the first step. The next requirement is the knowledge about all the processes involved in execution. Right form forecasting, sourcing, transporting, displaying and catering the right quantity at the right time – each step involves intimate knowledge about the processes involved.

3. The next step involves a question about who will execute the solution. A businessman can’t do everything himself. He needs to get the work done from others. For this he must understand why anyone will do for him what he wants them to do. It will mean knowledge about people, their behaviour, motivation, drivers and impact of the working environment.

4. A business will continue to survive only if it is financially healthy. This involves knowledge about money, liquidity, profitability, solvency, costs and other financial aspects. The business will have some resources of its own and some resources raised from outside. The knowledge about the appropriate balance of the two and managing the cash flow is the lifeline of every business.

5. There are some aspects within the controls of the business and there are many others which are not in their control, but which affect the business. Thus, subtle knowledge about the political, social, technological, legal environment is an essential requirement of each business.

Each business is born to solve a problem in the world. A house person has a problem of getting fresh vegetables, of a diverse variety, in small quantities, near his/her house. The vegetable vendor knows about this problem and in his own way offers a solution at a price. Each business be it a vegetable vendor or be it a refinery like Reliance, must have knowledge about the problems and the solution. That is not enough. There are many others who also offer the solution and the business must know about them too. Thus, every business has the knowledge of the customer and the competition.

Offering the solution is the first step. The next requirement is the knowledge about all the processes involved in execution. Right form forecasting, sourcing, transporting, displaying and catering the right quantity at the right time – each step involves intimate knowledge about the processes involved.

The next step involves a question about who will execute the solution. A businessman can’t do everything himself. He needs to get the work done from others. For this he must understand why anyone will do for him what he wants them to do. It will mean knowledge about people, their behaviour, motivation, drivers and impact of the working environment.

A business will continue to survive only if it is financially healthy. This involves knowledge about money, liquidity, profitability, solvency, costs and other financial aspects. The business will have some resources of its own and some resources raised from outside. The knowledge about the appropriate balance of the two and managing the cash flow is the lifeline of every business.

There are some aspects within the controls of the business and there are many others which are not in their control, but which affect the business. Thus, subtle knowledge about the political, social, technological, legal environment is an essential requirement of each business.

Skills

Each businessman has some basic skills and it is wonderful to see how they master it over time. Study of a business will enable students to get sensitized to the significance of these skills.

1. It is not enough that they offer solutions to the problem of the customer. It is also required that they communicate with the customers effectively about the solution and how it is worth the price that is demanded. Known as the ability to communicate the value proposition in various verbal and non-verbal methods, this is one critical skill that can be observed in each business.

2. When they get the work done from people, they need to make sure that what they want is understood well by their people and, they should be able to get the appropriate information from their people. This skill of ‘expression’ and ‘extraction’ is also visible in each business.

3. Each business is a part of what can be called a value chain having on one hand suppliers and on the other hand customers. The whole chain has mutual dependence and it is useful to see how each of them win and yet the business also wins. This is known as negotiation skill.

4. Finally, the businessman must lead from the front. His team looks up to him for guidance and what he does or does not do will drive the entire team. These are the leadership skills.

It is not enough that they offer solutions to the problem of the customer. It is also required that they communicate with the customers effectively about the solution and how it is worth the price that is demanded. Known as the ability to communicate the value proposition in various verbal and non-verbal methods, this is one critical skill that can be observed in each business.

When they get the work done from people, they need to make sure that what they want is understood well by their people and, they should be able to get the appropriate information from their people. This skill of ‘expression’ and ‘extraction’ is also visible in each business.

Each business is a part of what can be called a value chain having on one hand suppliers and on the other hand customers. The whole chain has mutual dependence and it is useful to see how each of them win and yet the business also wins. This is known as negotiation skill.

Finally, the businessman must lead from the front. His team looks up to him for guidance and what he does or does not do will drive the entire team. These are the leadership skills.

Attitude

While knowledge and skills are visible in every form of business, some unique attitudes which are very vital for life are visible more prominently in family business.

1. Every family business has a humble origin and is a story of tremendous faith in self, faith in the world and faith in the future. Every family business is a story of ups and downs resurrecting from almost destruction.

2. Every family business is also a story of grit, challenge and ability to digest failure and frustration. Each one would also display conviction, courage and confidence. Each one had gone through times when the stakes were high and no solution in sight and yet they sprang back with the dream in their eye.

3. The family businessmen have a unique ability to manage a balance between short term and long-term perspective. While they must survive, they also must ensure profit and growth in the long run. They invest their time, money and energy in the unknown future with tremendous optimism and positivity.

4. Apart from a good source to learn about knowledge, skill and attitude, the family business is also a wonderful place to learn about the role of the family. In the initial years all family members provide free labour to the business. While one or two persons might be in the front fully engaged in the business, the other family members cover them up by emotional support.

5. The family business is built upon the concept of valuing trans-generations. There is respect for the previous generation for having built the support base and there is a concern for the next generation to prepare them to handle life and the business. Importance is attached to the value of humility and respecting others. Most of the family businesses are also engaged in religion and charity. That demonstrates two important values – one, that there is a power bigger than us. That promotes humility. And the second is of compassion - that we have a role in the world to play.

Every family business has a humble origin and is a story of tremendous faith in self, faith in the world and faith in the future. Every family business is a story of ups and downs resurrecting from almost destruction.

Every family business is also a story of grit, challenge and ability to digest failure and frustration. Each one would also display conviction, courage and confidence. Each one had gone through times when the stakes were high and no solution in sight and yet they sprang back with the dream in their eye.

The family businessmen have a unique ability to manage a balance between short term and long-term perspective. While they must survive, they also must ensure profit and growth in the long run. They invest their time, money and energy in the unknown future with tremendous optimism and positivity.

Apart from a good source to learn about knowledge, skill and attitude, the family business is also a wonderful place to learn about the role of the family. In the initial years all family members provide free labour to the business. While one or two persons might be in the front fully engaged in the business, the other family members cover them up by emotional support.

The family business is built upon the concept of valuing trans-generations. There is respect for the previous generation for having built the support base and there is a concern for the next generation to prepare them to handle life and the business. Importance is attached to the value of humility and respecting others. Most of the family businesses are also engaged in religion and charity. That demonstrates two important values – one, that there is a power bigger than us. That promotes humility. And the second is of compassion - that we have a role in the world to play.

Each family business, be it a very tiny shop of a big industry is a story on not only wealth but also wisdom and values in life. A study of any family business can in a very short time provide a glimpse of these various aspects of life in action. It can be a true inspiration as well an aspiration to each student about how to lead their life.

Asian Institute of Family Managed Business (AIFMB), a not for profit company, is promoting understanding and appreciation of family business. They offer collaboration with all educational institutions to disseminate these learning to the entire student community. One of the ready to use instruments offered by AIFMB is an on-line course on ‘Management Basics – Learning from Family Business’.

Family businesses are everywhere. There are many lessons to be learnt from them. A peep in their life will teach every student some of the most valuable lessons of life.

The writer is Director of the Global Family Managed Business Program (GFMB) at S P Jain School of Global Management. He is veteran with a PhD and extensive interaction in the field of family business for over 20 years.