A family business is something that can provide significant opportunity and also a good amount of frustration. Say you’re starting a clothing store like Zara, a Marketing Agency like Viva Traffic or a simple bakery. There are many benefits associated with starting and running a family business. However, at the same time, there can be some pretty significant disadvantages as well. In this article, we will be going over some of the main pros and cons of doing business with family.
Doing Business With Family:
When it comes to doing business with your family, the primary benefit is the loyalty that you will be able to achieve. The fact is, you are never likely to find a partner with such a vested interest in being loyal to you as a family member. Because family members can be closely trusted, you will never really have to worry about having significant issues with distrust with them. Also, because they will be able to provide you with the support that you need to keep going when times are tough, they can be excellent at helping you power through the difficult times that just about everyone goes through at some point in a business.
Another benefit that you are going to be able to enjoy when you work with family members is the ability to be much more flexible. Family members are typically going to be much more flexible and lenient when it comes to various things that can impact your business such as work schedules, mistakes, or even judgement. Therefore, they will offer you a level of flexibility that you are not likely ever going to be able to get with other kinds of partners in business.
One of the biggest drawbacks of going into business with family members is the potential for conflicts to arise. Because family businesses also have personal relationships to navigate, it can be difficult being able to do business with family at times because personal relationships and business relationships can really get in the way of one another. You are not really going to have this same kind of problem when you are doing business with other people that do not know you on a personal level. Therefore, this kind of conflict can result in all kinds of problems within the business if not dealt with properly.
2. Wrongful Promotions.
Another problem that can result from doing business with family is dealing with some kind of inadequacy. Because family members will feel obligated to get some kind of promotion even if they do not necessarily deserve one, you are going to end up having to deal with some members possibly not earning their job description which can really put your business at a significant disadvantage. After all, you might be left with someone in a position that either he/she simply is not ready or prepared for.
Overall, there are many pros and cons associated with running a family business. While it can provide good structure for a business, it can also be the downfall of one as well.