family business

Very often, an insurance agency is a family-run business. For that matter, a lot of insurance carriers and general agents are also operated by people with the same last name or hyphenated last name. Whether the company is a “Mom and Pop” operation or a Fortune 500 stalwart, running a family business has its pitfalls as well as advantages.

According to some experts, family businesses out-performed non-family businesses during the pre-recession years of the new century. To those whose last name is on the sign out front, this may seem counterintuitive. But according to a Harvard Business Review study, it’s true.

Henry Hutcheson, a certified Family Business Advisor and founder of Family Business USA consultancy, said “the factor that enables family businesses to rise to the top is trust: Family members can potentially trust one another far more than non-family members. But trust can erode – when a family member can’t or won’t perform at the necessary level; when there’s a sense of entitlement; drug abuse; laziness. And that can have serious, business-killing consequences.” He added “if the business is professionalized, there will be a way to deal with those issues. But too often, safeguards are not in place.”

For the rest of the story, read the November issue of BIG Times Magazine at www.biginsusa.com.

Recommended Posts