Family-run businesses have made some of the most successful companies on the planet. Walmart, Volkswagen and Chick-Fil-A are all family businesses that grew and grew into worldwide success stories. Although most family businesses aren’t global corporations but small, community businesses that put down roots in their local area, you shouldn’t limit your dreams when it comes to creating a high-achieving family business.
Running a family business is a little different to running a regular business. Let’s take a look at the pros and cons of starting and running a family business!
Why does working with family involve so many ups and downs?
If you have never worked in a professional capacity with your family before, it can be quite a shock to the system. You may not have realised just how different it is to have your closest, most trusted family members as colleagues, or even as your employees. This situation can both strengthen and weaken your family dynamic, depending on how you approach it.
Here are some of the pros of working with your family!
- You trust each other 100%.
Starting a business can be a rocky process; it involves a lot of decision making that can make or break the company’s future. Whether you are applying for business loans or deciding on branding, big decisions require trust – and working with your family means you can trust each other 100%.
- You have lots of motivation to keep the business thriving.
Running a business has its difficult moments, and in those moments, it is easy to forget why you started this whole thing in the first place! Working with family means you always have a reason to keep going.
- You get to spend more time with your family.
Ultimately, you get to spend more time with your family when you work together! Many business owners lament the fact that they don’t see their family as much as they would hope; this won’t be an issue when running a family company!
On the other hand, here are a few cons to working with your family…
- It’s hard to set boundaries between family and work.
People are trying more and more to find a work-life balance that gives them time for graft and time for relaxation. When you work with your family, though, the boundaries can become blurred. Family time can turn into work chat, while work time can quickly dissolve into family fun. You need to be very clear about your boundaries as a family if the business is going to thrive.
- You might find yourselves having more arguments than before.
Of course, no matter how close you are as a family, running a business can be stressful. You may find that you are arguing far more than you used to about work-related issues!
3. The Financial Challenges
Running a family business can be both rewarding and challenging. However, one of the biggest challenges that family businesses face is managing finances. Finances can impact every family business aspect, from hiring decisions to how much money is reinvested into the company to getting help from Lending Stream Refund claims.
If you are considering opening up a family business in your local area, make sure you read this advice carefully before proceeding! Family businesses can shoot to immense success, but they need to be run with boundaries and trust if they’re going to achieve great things.