Family business

Starting a family business- Pros and cons

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The establishment or continuation of a family business is an important part of the American dream.

Each businessman is chasing fortunes so that they can provide for and spoil their family.

There’s no better way to preserve our ancestors’ legacy than to maintain and improve the businesses that they left us.

While family businesses have the ancestral dimension to them, they provide a unique experience for current members involved.

These types of ventures are the backbone of American modern society.

Those types of enterprises have their downsides, despite their rich history. Here are some pros and cons associated with working in a family business.

Advantages

1. Motivation

Operating in a family-owned establishment means you ‘re either among the owners or your immediate family members.

Seeing the business boom means seeing the closest ones smile, laugh and rejoice.

The motivation to meet weekly , monthly, and annual targets stems from the heart and not from empty promises to some CEOs living thousands of miles across the ocean.

The work environment fosters your inspiration, because all your colleagues hold the same perspective.

2. Taxes and insurance

For younger employees the extra costs of taxes and pensions can be reduced.

In your business hiring minors saves you money on taxes. Plus, their earned income may be owed little to no tax.

If you withhold taxes, of course, they might need to apply to get a refund.

For fact, if your services are dependent on travel, and your staff are family members, you will save a lot of money by applying for car insurance for the whole family.

3. Conducive environment

One of the leading causes of why people feel depressed in their jobs is a toxic working environment.

Family businesses are the only shops and enterprises immune to creating such depressing atmospheres.

For example, if you need a few days to study for an important test, your sister or uncle will happily cover your shifts during those days.

Many of the colleagues are close relatives and personal acquaintances, making it more a joy to arrive at work than an duty.

Disadvantages

1. Separating work from home

There are certain limits to the downside of family-owned businesses. Some people look forward to Mondays, because they are distracted by their obligations from family feuds and similar disputes.

Often workers contribute the most to the business after leaving the corporate world and refreshing their minds.

Family-owned businesses have no clear boundary between home issues and headaches in the business.

For that reason, many participants in these types of ventures bring problems from work to the office dining table and family feuds.

Before jumping into a family business keep in mind the lack of work-life balance.

2. Stubbornness

For example, everyone has one relative who refuses to step into the 21st century.

His ideas of how the world functions are nearly identical to those of your great-grandfathers who opened the grocery store that evolved into the current family business.

You and the rest of the family take him up every gathering head-on, telling him that his stubbornness would inevitably destroy the company.

These kinds of conflicts occur at family-owned establishments with every generation change.

3. Emotional reactions

Some don’t take criticism well. The circumstances require those in a traditional corporate setting to place their personal feelings at the side and act professional.

If they don’t conform to the situation, they ‘re in danger of stalling or failing their careers.

Family-owned businesses are primarily businesses. If one employee does not perform according to the standards, they should have a word with the management.

But these conversations escalate because the criticism is perceived by one of the parties as betrayal and not advice.

Komolafe Timileyin is a passionate entrepreneur that loves to solve entrepreneurial issues. He is also a blogger and an upcoming Engineer.

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