The Mom and Pop Test

As the name suggests, a Mom and Pop business is typically one run by a husband and wife. They are often family businesses, but the description is by no means limited to them. These owners have little formal business education and little interest in learning new business techniques. They run the operation by the seat of the pants and never invest in themselves or the business. As a result, their businesses seldom grow beyond about 20 employees.
You often hear people talking about theirs being a ‘Family Business’, but what does that mean? In a case where one generation is handing over to their children, ‘Family Business’ is an accurate description, but in companies where that isn’t the case what do the owners really mean when they use the words ’Family Business’?