What is one advantage of a family business?
To help potential entrepreneurs on deciding if they want to run a family business, we asked CEOs and business owners of family-run businesses this question for their best insights. From demonstrating commitment and carrying on a legacy, there are several benefits to having a family business that may help you with your decision and the growth of your business.
Here are nine advantages of a family business:
- Nurture Family Pride
- Build Generational Wealth
- Carry on a Legacy
- Demonstrate Deep Commitment
- Leverage Family Bonds
- Learn to Keep Work and Life Separate
- Benefit From Hands-On Experience
- Sustain Long-Term Leadership
- Enjoy Help and Connection
Nurture Family Pride
The main advantage of working in a family business is the passion each person brings to the company. For us, this is so much more than a job. This is an amazing company that our father built and that we feel a strong sense of pride and duty for. I believe our clients feel that as well which is what makes our jobs that much more special.
Carey Wilbur, Charter Capital
Build Generational Wealth
A family business can be a great way to build generational wealth. To protect your family business and your family’s financial security, business owners are often some of the best candidates for insurance. Whether that is disability insurance or life insurance, among others, these are especially important to better manage the risk of lost income during difficult times.
Chris Abrams, Abrams Insurance Solutions
Carry on a Legacy
For me working in the family business is very personal. My father Dr. Irwin Smigel and my mom created the business. My father’s impact on dentistry can’t be overstated. He literally created the field of cosmetic dentistry. So for me, being able to keep my father’s legacy alive is important not only to me but to the field of dentistry.
Bellanca Smigel Rutter, Supersmile
Demonstrate Commitment
Family-owned businesses have proven to be crucial for each member’s growth. Unlike other businesses, members of a family-owned enterprise tend to have a stronger commitment. For instance, there is every chance of you putting in more effort and extra hours toward the success of your family business. Also, the family business manager is more likely to understand your need for more flexibility in your working hours.
Adam Garcia, The Stock Dork
Leverage Family Bonds
Working in a family business has so many advantages. One advantage is that it’s a natural team. You already know each other’s strengths and weaknesses, so it is easy to be able to divide responsibilities. This way each person shines doing what they do best. It is also easy to be a team player because of the bond you share as family members. There is nothing more rewarding than working together with family to accomplish a shared goal. I treasure being in business with my father.
Ben Cook, Jr., Printed Kicks
Learn to Keep Work and Life Separate
There are many advantages of having a family business if you adhere to a few rules. If you keep work and personal matters separate, there is much joy that can be derived from the successes at work. Sharing these moments with the one you love can strengthen your personal relationship and create a stronger trust in each other at work as well. Working with my husband has been a great experience as we keep our personal and business matters apart from each other and don’t discuss work without our other business partner with us if we can. There is an inherent trust that comes with working with a family member. You share the same values and understand the motives behind decisions, all of which make the future trajectory easier to predict and navigate.
Katie Lyon, Allegiance Flag Supply
Benefit From Hands-On Experience
One advantage of a family business is that it provides members within the family chances to get hands-on business experiences. If you are from a family running its own business, you are likely to be exposed to the business environment very early or even earlier than others from normal families. You will have a chance to read business books and listen to daily conversations about business. You can also learn from experienced entrepreneurs who are your family members.
Moreover, you can get access to actual business documents such as contracts, financial statements or annual reports. Reading them and evaluating the data could widen your business knowledge a lot. A straightforward career path will be there for you as well because the company run by your family welcomes you abroad at any time. Even if you are just a university student, you can still go to the company to observe how it is run and how people work. It is such a privilege that everyone would like to have.
Jill Sandy, Constant Delights
Sustain Long-Term Leadership
One advantage of a family business is that there is greater stability in terms of leadership. The leadership of the business is usually determined by the position one holds in the family. The respect for a position within the family means fewer leadership wrangles within the business, and longevity in leadership. This then provides stable leadership for many years until life changes such as illness, or death force a change in leadership.
Joe Flanagan, VelvetJobs
Enjoy Help and Connection
I run a family business. Having your family members work with you is the frosting on an already delicious cake. I enjoyed running my online business before, but having my husband help brings more joy. Having the business to discuss also gives us more in common than we had before. Finally, I don’t feel guilty spending time on the business. Since he’s involved as well, that means more time together instead of guilt over time apart. You get more family time and more help, I recommend using family members in your business.
Janice Wald, Mostly Blogging Academy
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