Ownership is a strange thing. It’s a unique relationship between man and dog, dog and bone, or man and company. It’s not something we talk about very often. People around here like to think they own me, but I think I own them. Maybe we own each other? I warm their boots and lick their hands, and they put food in my bowl and scratch my ears. Our “ownership” is more of a family, much like Pref-Tech. How much do you know about Pref-Tech’s ownership? I recently cornered the owners for a little Q&A about their unique type of ownership – called Active Ownership. I was both fascinated and confused.
There are actually many different types of ownership. The types of ownership are sole proprietorship, partnership, limited liability company, corporation, and cooperative.
- Sole Proprietorship: “A sole proprietorship occurs when someone does business activities but doesn’t register as another kind of business.” (Novak, 2019) This one sounds très risqué, but also seems to provide the owners with the most direct control over their business.
- Partnership: “is the simplest type of business ownership when two or more people are involved.” (Novak, 2019) I could see wanting a partner to help with the paperwork, lack of opposable thumbs and all. This partnership idea still comes with a lot of risk.
- Limited liability company, which “separates the owner’s personal and professional assets” (Novak, 2019), essentially protecting the owner from liability.
- Corporation “is its own entity kept separate from its owners.” (Novak, 2019) This may seem similar to a limited liability company, but the protection for liability is greater, and a corporation can increase capital by selling stock, which does give investors a chance to own a small piece of the company
- Cooperative, which is “a private business owned and operated by the same people that use its products and or services”. Again, may seem similar to a partnership, but the difference is the employees are the owners.
There is always that big ‘What if?’. What if the business fails? What if it grows beyond the owner’s capacity to handle? What if the market dries up and there is no more work? What if the owners decided they want to dedicate 100% of their time to ear scratches instead of working? Business owners have many of options for “what if” questions. They can sell their business to either a strategic, financial buyer, their employees, or partners. They could also have their kids or grandkids take over the business. If the business is a corporation, the owners can sell stock on the open market. Often, owners choose to close their business, liquidate, or declare bankruptcy in an effort to reorganize. But not my people! We have a plan.
Their business is Pref-Tech, a privately-owned company. This father and son duo are involved at every level. I am proud to say, Shaun and Charlie know a lot about the security industry. They have all sorts of certificates on their walls. If I could read them, I’d be impressed. We also are not beholden to any investors. That gives Charlie and Shaun more flexibility for what we can do to honor our relationships, internally and externally.
Pref-Tech is run by the Castillo’s, sure, but they have also built a family. They invest in each employee, at their level and supply the tools and education they need to do their job and make a difference. Even for the little guys, like me. The Executive team is in this for the long haul. They want to make sure the next generation has all the tools and PGRIT to carry this company along for generations.
So, why do I love my people and Pref-Tech so much? That’s easy: the owners do what is best for the future of the company, its employees, customers, vendors, and of course, yours truly. My people work hard every day to ensure our future, which they can because we don’t have shareholders, or bossy people who own stock.
Thanks for reading my blog! If you need me, I’ll be in the warehouse, putting in my bit of hard work to do my part too. We’ve got work to do, communities to keep safe and employees to keep moving.
Novak, M. C. (2019, June 21). 5 Types of Business Ownership (+Pros and Cons of Each). G2. https://www.g2.com/articles/types-of-business-ownership.