With Family, it’s never just business. It’s always personal

ARMA Insurance HV has been providing high quality insurance broking and support for over 15 years. We pride ourselves on our level of customer care. In this time we have developed a particular expertise for several vertical business types: Contractors, Mining Services, Farming and Manufacturing feature heavily on our customer list.

Whilst we work hard to ensure that all our clients get the best of service and products, we have noticed that our close-knit team has a natural affinity for family owned businesses.

The life of a broker here at ARMA is a little different to most. The work we do often involves seeing our clients when they are at their most challenged. We not only feel a real responsibility for them (both when making claims and in relatively less dramatic times) but we find ourselves more than a little invested in their dreams.

We often discuss with each other how there are often very similar attitudes between our family business clients and our own team. A little research recently has shed some light on this.

It is estimated that between 65-80% of all businesses in Australia are Family owned and run. Frequent studies have also found that on average, Family-owned businesses perform better over the long term.

In 1983 a scientific paper by Davis found that Family-owned businesses scored higher than non-family owned businesses in 4 key areas. If you are part of a family business these may ring true for your experience as well.

Trust, Altruism and Commitment.

In today’s low unemployment environment, it has almost become expected that employees will move every few years and, in some cases, deliberately use employment postings (while still working diligently of course) as “stepping stones” in a career path. While we make no judgement here of this practice, the effect of this phenomenon can make long term planning, strategy and cultural development within a company extremely difficult – slowing down cumulative success in some companies’ instances.

Family members will often take their commitment to the family business as a more permanent step providing continuity, stability and often better long term operational success.

Adaptability

Where a business is also reliant on the participation of a number of family members, the company will often take on some of the traits of a functional family. In this light the organisation becomes more resilient, adaptable and flexible. If a member isn’t working on one role, rather than eject the worker, there is a larger appetite for adapting and finding a role at which that person can make a more useful contribution.

Long Range Planning

A natural consequence of having family involved in business is the ease of which a long term consciousness is achieved within the group. Families come with an inbuilt sense of what’s been before and what lies in the long term future.

Often individuals short term needs interfere with a true long term planning process. Employees need to balance what’s good for the company against what’s in their own best interest. In Family businesses, the long term success of the company is often an automatic concern for the family members. In this space, plans that benefit a company in the long term are more easily implemented, accepted and understood.

Love for Firm

This item may seem a little corny but the concept of “love for firm” is a genuine phenomenon. In non-family businesses, this ‘element” is often collapsed in conversations around corporate culture. Employees will feel (and act) with more goodwill to the organisation when they feel this “Love for firm”.

This may take the form of positive tweets about a workplace, public support for key personel and even unpaid referral of business to the firm when the opportunity arises.

While it might seem obvious that family members might have a naturally higher “love for firm”, it is a feature that would contribute heavily to success and efficiency statistics. The social equity gained however can also have drawbacks for family firms. Family members can take this love too far and create problems for the leaders of these companies.

The leader of a family firm balances both the needs of the organisation and the needs of the family as a whole and individual members within. This is a particularly tricky job if you stop to think about it.

So that’s why we fit so well!

The family business is not just an organisation with goals and systems. At the same time its an asset, a provider for the family, a legacy in the making and sometimes, a crutch for individuals within the family. For these leaders its never “Just business”.

We think this is why there is such a good fit with ARMA Insurance Brokers Hunter Valley. To begin with, the asset that is being insured means so much more to so many more when it’s a family business. The consequences of getting insurance wrong (underinsurance or incorrect administration of a policy) have much greater implications.

They are also insuring an entity that is likely to be adapting more, changing faster and in many cases, growing faster.

If you are responsible for all or a part of a family business, we at ARMA Insurance Hunter Valley not only get you, we are like you. Its why we have built a reputation over 15 years for “above and beyond” service with a total care attitude.

If you’d like a team with a like-minded headspace as well as a culture akin to that of your family business, we are here to help. Call 4932 4444 or fill in this form and one of our dedicated team will be in touch to discuss your specific needs.

Family Business. It’s never just Business.

*Davis 1989