4 Lessons Learned From These Centuries-Old, Family-Owned Businesses

Until 2006, Kongo Gumi, a Japanese construction company, was the longest-running family-owned business in the world.

20:20 24 March 2016

Until 2006, Kongo Gumi, a Japanese construction company, was the longest-running family-owned business in the world. One of their first projects, the Buddhist Shitennoji Temple (built in 593), still stands. Unfortunately, the global recession of the early 2000s forced Kongo Gumi to close its doors after 14 centuries.

Even though Kongo Gumi is now defunct, many other family-owned business are still running strong. Here are a few of them and how they managed to thrive all of these years.

Jim Beam (founded 1795)

Jacob Beam sold his first batch of spirits not long after the founding of the United States. Little did he know that more than 200 years and 10 million barrels later, his business would be an American icon still operated by his family. Colonel James B. Beam changed the company’s name from "Old Jake Beam Sour Mash" to “Jim Beam” in 1943.

Jim Beam owes much of its success to tenacity and perseverance. Since the company's founding, it has endured numerous hardships, including the American Civil War and its greatest challenge: Prohibition. Still, the company held steadfast, believed in its product and refused to let the quality of its bourbon waver. These are the reasons it has continued to thrive as a company and are lessons other businesses should emulate.

Although the company went public in 2011, Jacob Beam’s family members continue to run the day-to-day operations. Fred Noe, a seventh-generation Beam, is currently their master distiller and global brand ambassador.

Buck Knives (founded in 1902)

Hoyt Buck knew he could make a better knife, one with stronger steel that would be made well enough to be passed down among generations of family members.

Based on the principle that every Buck knife they made would be the best knife in the world, every time, the company has become synonymous with quality. Even though they could increase their profit margins by outsourcing, Buck continues to maintain control of the manufacturing process in order to insure the quality of their knives. They put so much faith in their craftsmanship that they offer “forever warranties” for their products. Business leaders should take note: profit over quality isn’t the best route.

José Cuervo (founded in 1758)

Forty years before Jacob Beam sold his first sip of whiskey, the King of Spain issued a license to produce tequila to José Maria Guadalupe Cuervo. The business has been family operated since and is now Mexico’s oldest company.

Much of José Cuervo’s success stems from the fact that the company has stayed true to its brand and product — with very little diversifying. The company chose to do one thing really well (produce tequila) rather than attempting to be mediocre at many things.

In a time when many business leaders will tell you it is important to diversify your business, the staying power of José Cuervo shows that sometimes it's best to stick with one thing.

RJ Balson & Son (founded in 1515)

Europe’s oldest family-owned butchery owes much of its continued success to its handcrafted bangers (sausages) and cured bacon. Consistency, family pride and quality are the factors that have kept RJ Balson & Son in operation for over 500 years.

The butchers have won numerous awards, and nothing seems to be slowing down this global powerhouse’s staying power. In 2007, Mike Balson opened a branch of the business in the United States.

 

For these four long-running, family-owned businesses, one thing stands out more than anything: a commitment to quality and a desire to be the best in the industry. Simple things that, if applied to your business, may keep your brand around for centuries.