Should You Start a Business with Relatives: A Mistake or a Thoughtful Decision
Is it possible to start a business with relatives, or is it a bad idea? There are both pros and cons to starting a business with relatives. Everyone must decide for themselves whether this business option is right for them and their family.
There are positive aspects to running a business with family.
The main advantage is mutual assistance and understanding in a difficult situation. Many bureaucratic issues, such as sick leave, time off, and vacations, fade into the background.
Relatives will be loyal to the difficulties at the initial stages of building a business, will be understanding about delays in salary payments, because they will be interested in developing the business and not interested in worsening relations due to trifles.
Another important advantage is that you know your relatives, you have had time to study them thoroughly, you know their characters and other behavioral characteristics, you know what kind of work you can entrust to whom, because you are aware of the abilities of certain members of your family.
You also no longer need to search for personnel; all possible candidates for positions are around.
It is quite important that the money stays within the family, you increase your own capital, which is at least much more pleasant, and in addition it gives an advantage in terms of business development.
The downsides are quite obvious, and it is often the other side of the coin that discourages people from starting a business with their loved ones.
Failures in business can affect personal relationships outside of work. This is one of the main disadvantages, because no one wants to quarrel with their family.
Those character traits that did not bother you outside of the work process can greatly affect the work process, because they come to the fore. And, for example, the sluggishness of one of your relatives will cease to be a “funny” feature.
The second disadvantage is that if a situation arises where we would fire a hired employee, we give a relative a second chance, which has a detrimental effect on the entire process. And if it comes to dismissal, it will be extremely difficult, you need to be prepared for this.
Another important disadvantage is the problem of control; you need to take yourself and your decisions seriously; influencing the decisions of other people can lead to the ruin of the business.
Starting a business with relatives should be done carefully, discussing all working moments on the shore and conveying to everyone their role, but if everything is foreseen, this type of business will bring benefits to each family member.
Earlier we wrote about what kind of business to open during a crisis .
