Family or business? In theory, family businesses are a picture perfect and on paper everything works out just perfectly well. Through generations the business can be managed by people with a similar mindset. The problem with family business is that it is very closed to any external partners, investors or consultants. In a way, this is probably a good thing and serves as a protection of the business. On the other hand not having any external ideas leaves little to no room to any imagination, meaning that all the thinking and shaping of the business happens within the box.
Have you ever thought how many people actually want to join their family business? There is so much market opportunity for young talents today, start up their own company, get a job in one of the top 10 companies and that's only to name a few. So why would our parents pressure us into a family business?
Of course, the fear of bringing in someone who will revolutionise years of experience is a big part of why we chose family over anyone else. Perhaps, it is worth a thought though. Where is the guarantee that family member would not want to bring their own ideas to the table and follow the lines of generations.
Recently, there has been a lot of discussion on the importance of family business but I think that somewhere along the line it gets messy and complicated. Especially when it comes to finances and sharing the profit. Family is complicated even without bringing in something like running a business together. How do you decide who plays which role in the company? What if this creates more conflicts than resolves any.
Perhaps, it is worth a second thought before starting a family business.
Published by Karina Saakyan