Having a family business seems like a dream come true to a lot of people, and there are a lot of advantages to having one. There are plenty of disadvantages, too. That makes it important to consider both the benefits and the detriments of going into business with your family members.
Let’s look at some of these factors so that you can better determine what’s right for you:
1. You know who you are dealing with
Maybe your spouse or sibling is not your ideal business partner. But at least you know their flaws and can (hopefully) trust them. Were you to go into business with strangers, you may not feel sure about their commitment, their drive or their honesty.
2. Breaches of trust could have massive implications
If someone you work with that is unrelated to you breaks your trust, you can move to cut ties. You can’t just cut your family out of your life or forget about them when you go home. How would your evening meal be if you had to tell your daughter off for turning up late to work yet again? How would Thanksgiving be if you feel your brother has been making business decisions behind your back?
3. You get to spend more time together
Maybe you dream of spending more time together. That will work great for some people, but it could leave you feeling sick to the back teeth of each other and seriously affect your personal relationship.
4. You may need to close to go away together
What are you going to do when you fancy a family vacation? If you are the ones that run everything, who can you get to cover? You might find your only option is to take separate vacations so you can keep the business running all year.
If you feel a family business is right for you, putting the arrangement in writing is crucial. Business partnerships often fail, as do personal ones, and making clear how you will cope with such things is easier at the outset than after things have gone sour.