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I have worked for many family owned business, and have never had to deal with any of the horror stories throughout this thread from most family members.
If I was forced to take another job, the only company I would even question based on their ownership is a company owned by the parents and ran by their kid/kids, it seems like outside of 1 every company I have ever worked for that was started by parents/ grandparents and the kids inherited the job has been a nightmare. The one situation it was not like that was a company where the kid actually worked in the industry for another company for multiple years, and then came back and earned his spot at the top.
Especially if the wife is very insecure and if you are good-looking and have good working ability, your working there can be a nightmare. After the wife has learned certain things from you, she will blame you for no reason and complain to her husband and kick you out, no matter how much contribution you have done for their business.
My most recent place of employment was close to one of these. It was a machine shop still run by the founder - well, technically since he was sort of "retired in place" by the time I got there - and many of the people had been there since forever.
It was also a horrible place to work. Oh, sure, some of the people were okay or even great, but many were total sociopaths and the overall work environment was terrible. Failure flowed from the top, and the company COO was long-time buddies with the founder, so he ran the show and could do no wrong... except in reality, he couldn't do anything right. He made one bad decision after another: grossly underbidding all jobs, pissing off regular customers, getting in bed with shady customers that wouldn't pay us, and replacing good subcontractors with cheaper idiots.
The end result was predictable - the place is about out of business now. He was also a raving, hate-filled loon who stormed around the building, screaming at everyone all the time about everything. No logic or facts could penetrate his iron skull, and he was always one step away from starting a fist fight with everyone. Of course, he'd then sweet talk the founder and convince him that everyone else in the company was a moron, so he kept his job as he steered the ship into one iceberg after another.
Like most such places, friends and family came first. Good workers, such as myself, were discarded, while total idiots who were hunting or golf buddies with the guys at the top kept their jobs forever, despite not performing. My "favorite" was the clown in the CAM department who had been there for many years and to this day has never created a single CAM program that is even close to right. He also screwed up every other aspect of the job: his tool sheets are wrong, his setup sheets don't make sense, and he refused to follow any company processes, despite ISO requirements... I was often stuck cleaning up his messes in addition to my own work, and everyone in the place knew he was a total moron. But he's buddies with the guys at the top, so he still works there... at least until the place goes under.
Small businesses like that one are completely worthless and don't deserve to be in business. Every place has favoritism and connections always matter more than performance, but in a tiny business, the damage done by the idiots can be fatal and all it takes is one screaming loon to destroy the company culture for everyone and make each day a living hell.
I've worked for four companies in my ten years of employment.
First was in high school, at a local grocery store which was a mom-and-pop store. Literally - my office was next to their offices. They loved me, so I was spared their games of favoritism, but for most of the other employees, it was a nightmare. So while I did not personally have issues working there, I saw what a mom-and-pop environment can do.
The three other companies I've worked for have all been Fortune 100 companies - while it's true large corporations can have a lot of bureaucracy, advancement is a lot more transparent and not as much of a game of favorites (it can still happen, but it has more oversight than a mom-and-pop type of place).
I personally prefer corporations from my experience, but I know not all mom-and-pop places are terrible.
If you are a “rainmaker†(a stellar employee) then it’s always a poor idea to work for a family firm.
Your outstanding work will be a source of friction if the other family members are lesser lights and you’ll be held back or down or even eventually fired if you outshine them once too often. If the company’s founder dies and you were a “favorite†you’d better get your resume ready as you’ll be out looking again soon.
Family businesses are great places for average workers and college kids. If you are looking to climb the career ladder, I’d suggest avoiding them like a plague.
As someone who has worked in too many family run businesses, I don't have much good to say about being an employee in one.
They tend to prey upon "outsiders" who have few job options. That's why they can survive. Someone has to do the work and new-to-town people who don't have a family connection themselves to get a good job through or local-rejects often end up trapped in some really horrible situations.
Even though I'm not looking for a job, I look through job postings to see what's out there, and I often see a business proudly proclaim themselves as a "Family Run Business". I wonder what they would say if someone asked them what the advantage to that really is if you're not actual family.
Had 3 experiences with (husband & wife) H&W workplaces:
1) I just ended a mom & pop type employment in March. The wife was the boss/queen bee. She just never kept me in the loop about anything & never paid me on time, paychecks have bounced, & I'm still waiting on $3000 from her right now. Total disorganization & unprofessionalism!!!
2) Before that, I interviewed with a H&W business. I'm just being totally honest here. The quite good-looking husband looked much better than his rather ugly wife, but at least she was slim. They both interviewed me, then she had to leave. He then paid me a compliment that I know he probably wouldn't say in front of his wife. Just looking at the whole situation, he's probably such a player. They never called me.
3) I briefly did a work at home job for a H&W business. They were really, really nice & supportive. I wish the job itself had worked out.
Ha! I used to think smaller, mom and pop places were better to work for but the reality is, those places are chock full of nepotism and they will favor the family members over others. Doesn't matter how hard you work.
My last job was working for a midsize company where the VP was the former VP's grandson or something, and a lot of the managers were cousins or somehow related. My husband has had similar experiences. I'd rather deal with a larger corporation and red tape to get simple mundane things done than family-owned business nonsense.
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