10. Ensure that no family member is owed wages or dues.
You should also weigh the benefits and drawbacks of a family-owned business; this will help you strategize better.
Among the benefits are:
– You are already aware of the strengths and weaknesses of the people with whom you are collaborating. In most cases, if they are close relatives, you must have spent some time with them in order to understand them better than when you must employ strangers whom you do not understand.
– It is easier to trust a family business partner than an outsider, especially when it comes to money.
– Outsiders are less willing to make sacrifices for the betterment of the business than family members.
– You feel more at ease in the company of your family than with strangers.
– Family members are easier to hire because there is no need to conduct background checks or go through the employment processes that you would with outsiders.
– Return on investment can be easily obtained because the right people are easily assigned the right tasks.
Some disadvantages of family-owned business include;
– The possibility of family members becoming unprofessional and overly relaxed as is done at home, may impede the growth of the business.
– It is always difficult to impose decisions that may have a negative impact on the family, even when such decisions are necessary to move the business forward.
– It is common to incorporate family traditions and beliefs into the business, which can be detrimental. Family breakdowns are common, particularly when succession plans are not properly laid out. Some issues devolve into long-lasting feuds that may never be resolved, pitting families against each other.
– All ideas are generated within the family; no new ideas are generated outside the family, which may stymie the business’s progress.
There is a lot of advice out there about family businesses, and the majority of it is based on individual experiences and perceptions.
Walter Disney advised never to put business before family, and Amit Kalantry believes that starting a business with a brother will either end the business or the brotherhood.
There are many people in the family business who are doing well, but they have some advice, such as the one below;
“A family business is a never-ending journey, one that is continually evolving. Just when you think you’ve got a handle on something, things change, and you have to adapt quickly and efficiently.” – Genette Gregson, CEO, All States Trailer Spares
If you ask me, I will advise you to conduct your research and study the processes and procedures of existing family businesses that have grown over time, of which there are many. Find out what challenges they faced in growing the business, dealing with family members, and just finding out everything you can before embarking on that journey.
It is easier to learn from other people’s mistakes than it is to learn from your own.