Pros and Cons of Having a Family Business

A word combination “family business” associates with something small and cozy: a small bakery, beauty salon, notary’s office, designer’s studio, flower shop. All this is owned by a successful couple: a husband sells, a wife counts and works with papers, the business becomes a tradition and is passed on to children. Yet, what is there behind the pretty picture? Is it so comfortable to make money together with family members? There is some data received after a recent research: out of 100 biggest enterprises in Germany 17 belong to families, in France 26 companies out of a hundred are the so-called Enterprises Familiale, in Italy – 43.

Trust and the Team Spirit

There are certain advantages of family business – a high level of trust among participants of the business. There is no fear that somebody will sell secrets to competitors, work for another company at the same time. It is easier to start all affairs with people you know; you do not need to get used to them, look for a suitable mode of communication. It is not necessary to waste time to find good staff. Under usual circumstances, it is possible to waste a month or two to find a good employee. In a family, it is much easier: you can hire a relative. Such employees are usually ready to start working at once, without formalities. Such businesses make families more durable and amiable, because they are doing the same thing together. However, this coin has another side. As people say, all minuses are a consequence of pluses.

How Family Relations Affect Business

Family business textPitfalls start with family relations. Quite often, friendly attitude towards relatives does not let bosses evaluate them objectively. Employees can work without care because they know that they will not be fired in any case. So, hiring family members, you need to evaluate their ability to separate family relations from business ones. It is impossible to use the fund of the company as a personal wallet. No bosses should ever treat their employees as members of the family at work. It relates to both constructive and destructive critics and evaluation of results. It is not always easy to fire a person, even if he or she is a distant relative. Not all family members can accept critics as due. Sometimes failures cause divorces and parting with families. Problems at work are usually conveyed to homes, that is why many spouses prefer working separately for the sake of their homes.

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Posted by on May 31 2013. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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