Most people will avoid the idea of getting into business with family members. Perhaps you have no idea why. The main reason people run away from this idea is that they feel one family member might bring up issues that might sabotage the functioning of the entire business.
Whereas some people are right to have such feelings, for others, going into business with their family members has proved to be a great success. Some clients feel like they can trust a business being run by family members. However, a family business has its pros and cons.
Are you thinking of starting a business with some of your family members? Before you do, read the pros and cons that are listed below. It is important to understand the benefits and drawbacks of going into business with your family before you make any decisions.
Pros Of Having A Family Business
These are the benefits of starting a business with your family.
You Know Each Other Weaknesses And Strengths
If you chose one particular member to go into business with, the chances are that you have great chemistry compared to any other family member. This is one of the most significant advantages as you will not be afraid to speak up or disagree on important issues about your business. However, don’t just choose someone who you know best. Instead, go for someone who has the same vision as you and has the strengths needed to push your business to success.
It’s easier To Trust A Family Member
For any business to strive, there must be an element of trust among the partners; whether it takes one year or ten years, for your company to make it, you must be trustworthy to each other. Likewise, when it comes to starting a business with a family member, it’s only natural to trust a family member rather than a stranger. Not only in businesses but even in daily life, people will trust family members more than other people they know.
Fewer Chances Of Being Cheated Out Money
Yes, there are sisters, brothers, or even parents who have stolen from each other. However, these cases are less common than those that involve strangers. Having said that, if you have a family member whom you feel you can trust with your money and the company’s money, then go ahead and launch a business with them. If you start a business with a family member, there are fewer chances of them suddenly changing their personalities.
Cons Of Having A Family Business
These are the drawbacks you might encounter if you start a business with your family.
Higher Chances Of Groupthink
The truth is, just because they are your family members, it will not be all rosy. One of the issues that may arise is the issue of groupthink, which is also known as having opinions without critical thinking. For people who have grown up together, this might be more common. Therefore, it is why it is advisable to welcome new members to the team as soon as you can. New members will always provide different views that can help you scale and improve your business.
A Strain On Personal Relationship
This is another issue you are likely to face if you start a business with a family member. Take, for example, if the business outgrows your sister’s role and not yours. It would be hard to convince them to leave or fire them, without damage your relationship as family members. However, this can be avoided by establishing roles from and setting boundaries. Also, always communicate throughout the process. Also, don’t let personal fights spill over into your business relationships.
Some of the team members might feel like you are playing favorites with your family members. So, it is very crucial to keep every employee engaged and let them know their work is appreciated. As you start your business, make sure other team members are involved and that no one is left out. Otherwise, they might feel isolated, which can lead to low productivity.
Deciding whether to go into business with a family member or not is something no one should take lightly. For some, this has resulted in family and even financial loss, and that is not the place you want to find yourself in. However, ta family partnership has worked wonderfully for other people. Ultimately, it is up to you to decide what is right for you and your family.