Family or Business?
We have all seen the charming quotes on pillows and blankets, “Family Over Everything.” However, what if family mixes with business. Does this quote still reign true? Some may say, of course! They believe they would never do anything to jeopardize their family but what happens when a dispute arises? Do you focus on what is most beneficial to the business or does family still remain the priority?
Family-run businesses have long been a respected and admirable success story here in America. People from all over the world dream about moving to the U.S, chasing their goals and living the “American dream”. Whether it be your local moving truck company called “Wilson and Sons” to the world-famous Warner Bros., working with family and succeeding together seems to be a common desire. However, like with all things, mixing business with family has its downfall. Lets take a closer look at some of the pros and cons that coincide with running a business with family.
The Pros
Job Availability
When working with family job opportunities are more accessible. The advantage of personally knowing the owner results in an expedited hiring process. There is no need for multiple interviews, background checks or even verifying qualifications. This saves time and money and allows the business to focus on growing their revenue and expanding their network. It also allows employees to have a variety of job responsibilities/titles. Rather than having one job title with a specific task, family-owned businesses have the freedom to create jobs that may not exist elsewhere. This variety of responsibility dispersed throughout the family business creates a "team" mindset to get a job accomplished, regardless of what the job description may be. Saving time on having to hire specific people for specific roles helps the business focus on what is really important: the business's success.
Easier Decision Making Process
Family-run businesses are less likely to have political hurdles to jump when making decisions. With little to no tiers of upper management having to approve or reject an idea/proposal, the business can quickly make beneficial decisions. With the shared values and mindset of a family run-business, implementing new ideas is quicker than those of a large corporation and can help keep the business running smoothly while saving time.
Sense of Ownership
Often times family members are more invested than traditional employees when it comes to the success of the business. This is because they are working with people they respect and trust for a common goal. This creates a sense of ownership among each family member, meaning they are typically willing to go above and beyond and make sacrifices in order to help the business succeed. They view the business as their own and not just a company that signs their paychecks.
Relaxed Environment
Almost everyone enjoys working in a relaxed environment, an atmosphere with little to no micromanaging or strict dress codes/workplace policies. This may be one of the most favorable benefits when it comes to working with family. There is typically a larger degree of flexibility and compassion when emergencies arise and time must be taken off from work. This flexibility in scheduling and laid back environment creates a positive work experience for the employees and overall a more fun atmosphere to work in. Many family-owned businesses state that working with their family has not only been successful but also a great way to make memories that last a life time.
Trust Among Employees
There is a reason why most people prefer to support family-owned businesses over large corporations, when feasible. The trust and respect that coincide with family operated businesses are unlike any other. This is because family members are simply going to look out for each other. This support system creates loyalty within the business and trust between employees, creating a safe and healthy work environment. With family-run businesses each member already knows each other's strengths, skills, talents, and weaknesses preventing poor integrity or alternative motives that may harm the business in the long run.
The Cons
Conflicts
Although there is a sense of mutual respect within a family-run business, conflicts can/will arise. Whether these conflicts originate in the workplace or home, the repercussions of the disagreement may carry over into the other environment. This is where the favorable "relaxed environment" can become dangerous. Family members feel more free to speak their minds thus creating a hostile work environment until the conflict is resolved. Unfortunately in some cases, these conflicts are large enough to destroy a business or even a relationship within the family.
Lack of Discipline
Often times when working with family, rules are considered more of guidelines or suggestions and therefore, may be broken more frequently. Without strict consequences for undesired behaviors the chances of conflict in the workplace increase significantly. Many family-owned businesses may find it difficult to reprimand a family member causing the tensions to grow and the business to suffer.
Favoritism
Due to the possible lack of discipline in a family-run business, favoritism may become a problem. Instead of having to reprimand a family member for doing a poor job, some business owners may find it easier to simply give more responsibility to the compliant employees. This may come across as favoritism in the workplace and again, create a hostile work environment. Working with family often means more emotionally driven decision making which can sometimes cloud judgement and harm the business in the long haul.
Lack of Perspective
With similar life experiences, morals, ideas and expectations, family-run businesses may lack a variety of perspective. Meaning when a problem arises, the family unit may all agree on a way to solve the situation even if it may not be the wisest or most efficient solution. Additionally, if the family encounters a customer or vendor with a different mindset or background than them it may cause some unwanted friction.
Career Growth May Suffer
Working with family is a great way to kickstart your career. It requires little experience and can lead to great growth. However, the pressures to stay within the family business once you have grown may become overbearing. Many family-owned businesses may also lack the opportunities for career growth compared to that of large corporations. These limited opportunities may cause some family members to sacrifice broadening their career goals for the greater good of the family business.
The Bottom Line
Like with all things, balance is key. Family-run businesses can be a great American success story, if ran correctly. Setting boundaries and keeping clear open communication lines between family members can ensure that your business and personal relationships thrive. Keeping an open mind to different perspectives and setting clear expectations within your business will help minimize conflicts and ensure that your business venture is a success. From the smallest success stories to the largest, family-run businesses have proven themselves worthy of the effort. With teamwork and meticulous parameters working with family can result in living the American dream!
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