Why Family Businesses Succeed

Family Business Image

When it comes to purchasing trucking insurance, the first step is to figure out whether you want to purchase through an agency or direct from the carrier. Choosing to go through an agency has many advantages. One advantage that is often overlooked is if an agency is a family-owned business.

This post will discuss why family businesses succeed. Furthermore, how that success positively impacts the customer experience.

More at Stake

The owners of a family business typically invest all of their time and resources into the betterment of their company. This is unlike a corporate business in that the owner(s) of a corporation may not actually work in the business. A corporate owner might also own more than one business. Therefore, if one business goes under, he or she still has other businesses to support his or her needs.

By being an owner of a business for which one actively works, the family member has more at stake and is more likely to be an engaged owner. An engaged owner has a purpose and vision for the future success of the business. He or she will also have more allegiance to the business.

Such allegiance oftentimes leads to management staying in office longer than most. In fact, 60 percent of family business CEOs plan to die in office.

Innovation and Growth

As mentioned previously, an owner of a family business has a purpose and vision for the future success of the business. Along with this comes a succession plan, or a process for developing the next generation of leaders.

By working closely with the next generation, a family business owner is able to gain insight into areas of the business with which he or she may not be familiar. This oftentimes leads to ideas and innovations that benefit the customer as well as the company.

Core Values

Family businesses typically are looking to achieve more than just financial success. Therefore, these businesses’ decisions are guided by their core values rather than their profit centers. This typically results in a more favorable customer experience.

Ethical Standards

According to a study by EY and Kennesaw State University, 85 percent of family businesses have a code of ethics. However, only 57 percent of the world’s largest companies operate according to a code.

Such is the case with core values, ethical standards allow businesses to make decisions that both customers and the public find to be favorable.

Trust

While trust is last on our list of reasons why family businesses succeed, it is oftentimes the biggest determinant. Customers of family businesses are more likely to form personal, yet professional relationships with the owners. These customers then know who is in charge of handling their dealings with the business, which leads to greater retention and long-term success.

Truck Writers has been family owned and operated since 1983. To learn more about our trucking insurance offerings, contact us today.

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