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Strengths and Weaknesses of a Family Business

Every company, and every type of company has there own set of strengths and weaknesses which differentiate them from their competition. Here are some of the differences between owning a family business, and a non-family business.

1) Nepostism Family business owners often feel some sort of obligation to hire there relatives, instead of outside people looking for a job. The other people who are not related to them, often have better qualifications, and are clearly much better choices. The owner however may still chose to hire his or her relatives however, due to family pressure or sense of obligation.

2) Donations To Charity Unlike public companies who feel pressure from share holders to make money, and not donate too much to charity, small business owners, specifically family business owners, can to a large extent do what they want with the money. Often they will donate it to there favorite charity, even though they may not be able to afford it, or it's not in the companies best interests.

3) Less Profit Concerns Small businesses often want to make their customers happy, or do what is morraly right. This in itself is a great thing, and it's great that the companies want to do this, however sometimes the company will go over board, doing too much for too little profit. This can cause some serious problems and it may even cause the company to go out of business.

4) Loyalty Employees in family businesses feel loyalty to their company. They are unlikely to leave, and if they do leave it is extremely rare for them to go to work for a competitor. In public companies on the other hand this is constantly happening. Even in high position jobs employees will leave and go work for a competitior, to get an increase in salary.

5) Huger Sacrifices In family businesses the members of the family will work extra hard to make sure their company works out good. They will do every thing in there power to make the company as succesful as possible. They will work longer hours, without expecting additional pay. They will constantly think about how to improve the company, in order to make it better. They do this, either because they own part of it themeselves, or even if they don't have any ownership in the company, they will do it to benefit there family.

6) Teamwork Family business members don't have to question there coworkers motives (most of the time) because they know that they are acting in the companies best interest. If a coworker asks someone to do something, they will usually do it without second guessing why they made that request.

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