Cigar manufacturers as a family business..

[joncaputo]

I notice more and more that many of the most well known cigar manufacturers (as well as some of the small ones) are family owned and run businesses. I personally think this great. I would love the opportunity to work with my children in a family business when they get older. I often wonder though why some businesses are more likely to be family owned and ran than others - in particular the cigar business. Many advantages to working with family - but some distinct challenges as well

what do you guys think?

[stanthetaxman]

I'm thinking, possibly, the "farming" aspect has something to do with it?

[slowburning]

Here is my opinion:

Running a family-owned business has its advantages and disadvantages.

Advantages (in no particular order):
1. satisfaction
2. control of business, aka decision-making process
3. hands-on experience
4. you can pass it onto your next generation

Disadvantages (again, in no particular order):
1. limited resources
2. stress (yeah, that comes with both success and failure)
3. you maybe (read, MOST DEFINITELY) cornered by large corporations in the same industry
4. When you decided to retire, who to pass it onto (which kid to take over. In some cultures, it's always the oldest son to take-over the control regardless whether or not he has the brain. I am the younger of two sons, but I am the one with the brain and ability to run the business, at least that's what I think. )

I am sure there more of advantages and disadvantages than I listed above, but that's all I can think of now.

Keep in mind that when I say family, I mean immediate family only, no in-laws, no cousins or cousins' families, no offsprings' boyfriend or girlfriend and their families.

Like Stan said, in farming (growing tobacco), it's mostly family-owned.

[KevinG]

That's a good observation Jon.

From talking to different cigar manufacturers, I recall several times hearing about how when they were kids, they were always around the business growing up, playing in the fields and around the rolling rooms, smelling the cigar smoke and tobacco ... it's like the romance of the business got into their hearts and minds and they were drawn to it.

When I was talking to Christian from Camacho, I remember him describing how he would play around driving one of the little tractors that would pull a wagon full of tobacco leaves down on the farm in Honduras when he was 10 years old.

I scanned the two parts of the interview and didn't see that, so it may have been edited out, but I remember the conversation.