Should You Start A Family Business?
Starting a business of any kind has a number of benefits and drawbacks - franchising is no exception. Deciding to establish a company with family members might be challenging and should not be taken lightly. In a family business, you can profit from a string of benefits that you will not often see in other types of businesses. On the other hand, you might come across issues that are unique to family businesses. In this article, we will look at the advantages and disadvantages of starting a company with family members.
1. Motivation & Loyality
Motivation and loyalty are two of the most important factors when it comes to building a business. Your relatives are more likely to have vested interest and be more motivated to see the company prosper. Building a company takes a great deal of dedication - in good and in bad times. A major benefit of forming a business with family is that combined you can be more motivated to put in the extra hours and effort required to achieve company objectives. Determination to achieve common goals is also more likely among family members who are more willing to make sacrifices for the success of the family business.
2. You Already Know Them
When you create a company with family members, you are likely to be familiar with their personalities and work ethic. The same cannot always be said for potential workers and partners who are out of your family circle. Throughout the interview process, candidates often portray the version of themselves that they believe you want to see, rather than who they really are. You can negate those risks with family because you already know them.
3. Relaxed atmosphere
Working with family over other people can also be more enjoyable and relaxing. You don't need to spend a lot of time getting to know each other and determining likes and dislikes, since you already know each other. You may find such an environment exciting or energising. You're also more likely to enjoy such a casual environment at work with your family members, making your days more pleasant.
4. Core Values
You are likely to have closer fundamental values with your family. When you start a business together, the values may grow stronger, providing you an advantage in defining the identity of your business. The similar core values benefit your business as they provide a basis for your vision and establish the company’s culture.
1. Family Conflicts
Family responsibilities may accidently colide with business ones, and it's often hard to separate the two. Additionally, confronting a loved one when they are not behaving in the best interests of the business may be very difficult. Personal conflicts may spill over into the workplace and vice versa. It really depends on the kind of person you are and the type of family you have. Are they patient and empathetic? Or are they quick to rage, and often rush to conclusions? It is critical to settle disputes as soon as possible in order to prevent future unsolved problems and to minimise friction that impedes business development.
It is critical to make business choices based on business needs rather than personal considerations. This may be challenging at times when family members are engaged. For instance, who in the family is hired or promoted, should be based on who is most suited for the job, not on family hierarchy. An excellent technique that helps to minimise favoritism, is to utilise statistics and indicators for making choices and making sure every employee feels equally comfortable with expressing their views..
Over time, things may get too comfortable and certain family members in your company may believe they are above the rules and end up violating them. They may do so knowing that you are less likely to fire them since they are relatives. In any case, they take advantage of the fact that they are not just workers, but also family members who have unique privileges not granted to other employees. This may decrease the company's long-term development by dampening the drive for excellence and weakening workplace professionalism.
4. Age difference
Occasionally, age disparities among family employees may result in different worldviews. When forming a business with family members, bear in mind that different generations with varied experiences have a tendency to take different risks and assess decisions differently, which often leads in opposing opinions and potential conflicts among family members.
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