Overcoming Obstacles in a Family Owned Business (Pros and Cons)

Are you considering running a business with your spouse?  Have you inherited a business from someone in your family?  Has a family member approached you to start a business with them?  Are you trying to determine if you should include your children in your family owned business?  No matter what the situation is, there are pros and cons to running a business with any member of your family.  Before you make that final decision, take a serious look at the pros and cons to make sure you are prepared to overcome any obstacles that are very likely to happen at some point in time.  Obstacles are a fact of life.  It all depends on how you handle these obstacles on whether your business with your family member will be a success. In the following stories, you will find the challenges families have faced and how they have handled these obstacles.

Kristi and Lisa are sisters that inherited their mother's soy candle business.  For the most part, Kristi and Lisa were able to get along pretty well.  However, there were times when they disagreed on how to handle situations that would arise, or they would simply become annoyed with each other for the simplest things.  How they handled these situations is what would determine if they would be able to run a successful candle business. 

Because this was their mother's business, they made every effort to diffuse feuds, so they could remain on the right track, which was to keep their mother's legacy alive.  It was not always easy, but they came up with simple ideas and ways to handle things that would arise.  The most effective strategy was to put up a picture of their mother and a small handwritten note to remind them of her love and why they were there in the first place. 

Chris and Patty were owners of a successful advertising business.  Once they felt their business would be successful, they began to extend offers of employment to the family members they felt would be an asset to their company.  However, they also decided to hire outside of the company, as not all family members were experienced for the jobs that needed filled. 

Chris and Patty fell into the trap of nepotism, which is when family members are favored over non-family members, as far as perks, tasks, etc.  While this is a natural feeling to overcompensate with your family members, you are setting your business up for failure.  Employees that are not family members will begin to resent and lose respect for you and the family member you are favoring.  Chris and Patty ended up losing a very valuable employee because they favored their niece and offered her raises and positions that were better suited by the non-family member.  Chris and Patty learned their lesson.  They did not realize nepotism was happening, but they corrected the matter immediately. 

Jessica and her husband Jeff owned a remote control helicopter business.  Their business became a huge success.  They wanted to include their children in their business, but were not sure if it was the right thing to do for them.  There are many pros and cons on including children in a family business.   A job working for mom or dad is excellent for a child's self esteem and will give them a variety of skills they will keep with them through their lifetime.  Jessica and Jeff decided this would be a great opportunity for their children. 

After some time, problems began to arise because it seemed that all they ever talked about was work.  It is sometimes difficult to separate family time from work.  It is important to establish your authority figure as either boss or mom/dad.  This is very important.  Jessica and Jeff made a firm rule that work was only during certain times of the day and was not to carry into family time - no matter what!  They also decided that their children would also have to find jobs outside of the family business, at some point, to give them a variety of options for their future.  If they only work for the family business, they may miss out on their calling in life, which would be tragic. 

A family owned business can be a huge success and can be a wonderful experience for all involved.  It is important to consider the obstacles that could arise and determine how you will overcome these obstacles before they occur.  Remember that family is the most important thing and business must never come between your relationships.  Family cannot be replaced.  Therefore, nurture your relationships, while finding ways to create a successful family owned business.