There is no perfect business; there would always be advantages and disadvantages in building one. Creating a family business is an exciting idea as will be working close to the people special to you. In fact, successful businesses today are family businesses. But what are the pros and cons of creating a business with a family as a foundation?
It improves the relationship among family members. Since the family work together, it strengthens the bond that results to stability of the business.
The business system is uncomplicated and proficient. Starting and managing a family business is easier than your think. It only has an owner, manager and staffs to begin with.
Business owner gets protective of the family’s reputation. Members are more committed in securing the family than expanding the business. Owners won’t put the business at risk which could damage the name of the family.
Members don’t have formal entrepreneurship training. Leaders of family businesses train their children and grandchildren to take over the business. So the company still experiences the familiar leadership even though changes in the management are beneficial.
Rivalry is possible. Like any other business, family businesses don’t always succeed. Once the business goes down, family members blame each other, or worse, they will hate each other for the fallen enterprise. If the owner of the company dies, greedy children will certainly fight over the assets and properties of the deceased.
Running a family business is never easy and it will definitely fail if members don’t cooperate with each other. Members have to settle and accept their differences and push each other to be victorious. The leader must put emphasis to the business goal to ensure each member know what they should do to obtain success.