Pros and Cons of Having a Family Business

Pros and Cons of Having a Family Business
Family operated companies have long been part of the backbone of American business. Many large companies and corporations started as mom and pop shops and many father and son teams have gone on to build successful enterprises. Ford Motor Company, Marriott International, Nike and even Wal-Mart were all family owned businesses.
Anyone who has ever had or worked for a family owned business knows that having family members working together offers some benefits and unique challenges. Here are a few of them.
Pros
The pros of operating a family business begin with an involved, interested and hopefully loyal workforce. Family members are frequently willing to work long hours for the greater good, and work for less than what an outsider may. They may also be more willing to bypass a pay increase in tough times, or at least defer pay. Generally, family members can be trusted to operate on the best interest of the company.
Because family members know each other better, they can work closer and may communicate better. Decision making is often easier and learning curves faster. There is also a great sense of accomplishment when a family works together in creating a successful business.
Of course, the long term benefits of building a successful family business includes financial security and more flexibility in working hours as the business succeeds.
Cons
As you can imagine there are plenty of negatives to balance the positives in operating a family business. Since family members are closer, they may bring more drama into the workplace. At the same time, work problems can find their way back home, often negatively impacting relationships. While family members can be more loyal to the business, they may also take advantage of their position in the company. Because family members often become part of a company due to their last name and not their skills level, some family operated companies can lack in specialized talents. It is also common for non-family employees to struggle in finding their place in a family owned company.
If you have a family owned business, we can help protect your assets and your business.with a business insurance plan to suit your company and your budget. Contact us and talk to one of our business insurance experts. Let us do the shopping for you.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Blogs
Blinding Brightness: Navigating June Sun Glare and Your Auto Policy
Squinting into the sunset? Learn the insurance implications of sun glare accidents and why a healthy windshield is your best safety tool this June.
The Smoke and the Spark: Protecting the Ultimate Father’s Day Backyard Upgrade
Is Dad’s new smoker covered? Discover how high-end outdoor upgrades impact your home insurance limits before the big Father’s Day reveal.
Only One Earth: The Surprising History of World Environment Day
Happy World Environment Day! Discover how a 1972 global meeting sparked a movement that helps us protect our “Only One Earth” every June 5th.
Resilient Operations: Small Business Continuity in the Face of Summer Storms
If a storm knocked out your power for a week, would your business survive? Learn the essentials of Business Interruption insurance and storm-proofing your operations.
The Ultimate Seatbelt: Why Life Insurance is the Core of National Safety Month
You wear a seatbelt and a helmet—why wouldn’t you wear a financial safety net? See how Life Insurance fits into your National Safety Month goals.
Beating the Heat: Protecting Your Vehicle (and Your Rates) as Temperatures Rise
High heat means high risk for your car. Discover how a simple tire pressure check can prevent a high-speed accident and keep your insurance premiums low this June.
The June 1st Warning: Securing Your Sanctuary for Hurricane and Storm Season
Hurricane season starts today. Learn why you can’t wait until a storm is named to secure your home and why “Flood vs. Water Backup” coverage is the most important distinction you’ll make this year.
In Flanders Fields: Why We Wear Red Poppies on Memorial Day
Why the red flower? Discover the moving history of the Memorial Day Poppy and the woman who made it a global symbol of remembrance.
Beating the Heat: OSHA Compliance and Liability for Outdoor Workers
Summer is heating up. Protect your employees and your business from heat-related illnesses with our guide to National Heat Awareness Day.
Beyond the Holiday: Using Memorial Day to Discuss Family Financial Security
This Memorial Day, honor the past by securing your family’s future. A guide to transitioning from military to private life insurance.