Family-owned businesses play a crucial role in the economy. It’s estimated that 80% of South African companies are family-owned and provide jobs for 90% of the workforce. In a country with such high unemployment, the success and endurance of family-owned businesses are vital. However, as these businesses mature, so do the founders. Whether it’s a family member or a non-family member poised to take over the reins, having the right structures, a strong culture, and purpose in place is key.
McKinsey identifies four mindsets common to all family-owned businesses that give them a competitive advantage and are crucial to their success.
These include:
- focus on purpose beyond profits
- long-term view with an emphasis on reinvesting in the business
- conservative and cautious stance on finances
- and processes that enable efficient decision-making
Coincidentally, millennials share similar mindsets when considering their career choices. Their focus on outcomes, purpose, and goals, valuing both the customer and employee, being risk-averse, disliking bureaucracy, and preferring a less rigid corporate structure make them well-suited to working in a family-owned business.
One family-owned business that embodies these four mindsets and has millennial leadership in place is Bed King. Founded 25 years ago by owner and MD Mervyn Ewertse on a shoestring budget, Bed King now boasts 16 outlets nationwide, with its 17th store opening in Johannesburg this April. Thanks to Mervyn’s enterprising spirit and ability to identify an opportunity in a sea of sameness, where every other bed shop was selling the same products and competing ruthlessly on price, he has positioned Bed King as the leader in sleep innovation in South Africa. Building his reputation on integrity and compassion, Mervyn made his mark on the bed industry early on.
“The mattress industry is notoriously cutthroat, with salespeople pushing brands to close deals without a real understanding of their client’s specific comfort and support needs, other than price. When Mervyn first started Bed King, he sold the same brands as other stores, focusing on price and volume. But he soon realized this approach wasn’t aligned with his values and purpose.
He was genuinely interested in how his customers slept at night and felt he could offer much more than what other bed brands could,” says Carla Myburgh-Ewertse, the operations director at Bed King. She joined the family business in 2017 07, after working in logistics and distribution. Fed up with the egos and price wars, Mervyn knew it was time to put purpose ahead of profit.
Mervyn’s genuine interest in his customers, their sleep patterns, and how they chose a mattress led him to venture overseas in 2018 to explore the latest sleep trends. He found that people were struggling to find a mattress that was both comfortable and offered personalized support. He wanted to make it easier for them. This is when he discovered pressure mapping technology, originally used in the healthcare sector to help patients find comfort in wheelchairs and hospital beds, now being applied in the mattress industry.
“It was on his return that we launched the Comfort Solutions Lab, available now in every store nationwide. Offered free of charge, it only takes five minutes and can map a person’s sleep positions. The bed has 1600 built-in pressure sensors to target the body’s pain points, creating the optimal sleep code. This is then matched to three of twelve different mattresses, all designed and manufactured locally by Bed King, to complement each sleep code in three price ranges.”
The mattress industry is undergoing a remarkable transformation, fuelled by technological advancements like this.
These breakthroughs are reshaping how people sleep, enhancing comfort levels, and improving overall sleep quality. To date, 20,000 individuals have gone through the Lab, with 30% of them becoming return customers. “Innovation is key to growth. It is no longer a luxury but a necessity for businesses to succeed in the modern era.
I am always exploring ways to improve our customer experience and automate processes to increase efficiency, especially since we are celebrating our 25th anniversary this year. We’re undergoing digital transformation, just like other businesses that began at the turn of the century. ” With competitive advantage often derived from technology today, the willingness of millennials to embrace the new can create tension if the founders or current owners are reluctant.
The transition needn’t be difficult
Learning how to communicate across generations, stepping back, and establishing processes and procedures can make the transition smoother. This is crucial to ensure the survival of family-owned businesses in the long run. “As a family business, we must balance the needs of the business with family objectives and expectations. However, I feel incredibly lucky to have had a mentor like Mervyn.
In the early days of the business, when he started, things were hectic. I was only six years old at the time, but I never saw my dad stressed or unhappy. He was always smiling. His attitude and demeanour have stayed with me forever.
I’ve always known our purpose at Bed King, and as a close family, trust and mutual respect are at its core. Mervyn always listened to his staff intently, and I believe this is part of our success. It has resulted in the collaborative company culture we have today. Mervyn showed me that while entrepreneurship may not be glamorous, it can be gratifying, and perseverance goes a long way.”
When millennials enter the workplace today, they come with a purpose. They seek growth and aren’t blinded by the pursuits of others or the rat race. They value mentors over managers. Bed King seems to align with these values, making it a sustainable choice for a family-owned business.
To find out more about Bed King visit http://www.bedking.co.za and about Carla Ewertse-Myburgh visit https://www.linkedin.com/in/carla-ewertse-myburgh-627379103/
