Family owned and operated business is quite a familiar term. For many consumers, this means a more personalized experience and it’s a very popular business type in smaller, rural communities. If you are starting a business, you may wonder if it’s a smart idea to start your business with family members.
Generally speaking, you can share a home with family but it’s often a bit more difficult to share a business. If you are planning to start a family owned and operated business, you need to be certain that this is a business that you and your family members can operate together. You may feel as if it is a good idea but in reality, perhaps you and your family members simply will not mesh well together in business. You have to understand that a family business is going to work like a partnership and unless you specify otherwise, everyone who is a partner will have a say in how the business is operated.
This is not to say that you should absolutely not start a business with family, however. In fact, many experts feel that family owned and operated businesses have a much greater incentive with regards to management and growth of that business. There are a number of benefits of getting into business with family, not the least of which is the family relationship itself.
You know your family so you will know what they are likely to approve of or deny. If you are working in a partnership, you will have a much clearer idea of what you can and cannot do with their approval. In addition, your coworkers will be people who genuinely care for you. They will want to see you succeed just as you will want to see them succeed. If you have personal problems, your family is much more likely to be sympathetic than a stranger who may be a partner.
Studies show that the atmosphere in a family owned and operated business is much more relaxing and comfortable. If you are hiring outside employees, this is going to put them at ease and when employees feel comfortable, they are much more likely to be productive. This could certainly benefit your business.
Ultimately, whether or not you go into business with family will come down to personal aspects such as whether or not there is someone for you to go into business with. Consider all of the pros and cons before starting such a venture and you are much more likely to be successful.