Family business - a beautiful but challenging and demanding concept for entrepreneurs involved in this type of company. Did you know that, internationally, about 57% of existing businesses are family-owned, being responsible for employing about 63% of the workforce.
So far, that sounds pretty good, doesn’t it?. However, the same data shows that less than 1/3 of family businesses withstand the transition from the first to the second generation, and of those that resist - only half survive the change between the second and third generation.
The reasons for this sad statistic are diverse: the inability of founders to adapt to the demands of the 21st century or the desire of the new generation to enjoy more flexibility and freedom in professional life, which is not always possible under parental supervision.
If you are one of the happy potential heirs of a family business and it is difficult for you to make a decision in this regard, here’s a list of advantages and disadvantages that are worth considering:
Benefits:
- Continuing a family tradition. You grew up with this business and you know it to the smallest detail. Most kids are involved in the affairs of their family business since childhood, and this type of experience will greatly contribute to the success of the company under your leadership.
- Your opinion matters. If you have ideas for improving the business, the "boss" - who is usually one of the parents or other close relatives, will listen to you.
- You work with people you like. The activity within the family business creates and strengthens the ties. In addition, you work with people who care about you and want the best for you.
- You have an authority in the company for which others have to work for many years. Taking over a family business, you skip many stages in your career and practically enjoy top management responsibilities and income from the start, which others dream of for many years.
- You have the chance to leave the family business to your children. This way, you ensure their future and you also have an extra motivation to invest more effort and time in this company.
Disadvantages:
Here are some possible disadvantages that can occur in family business:
- You can be limited in your choices. Maybe you wanted to do something else in life, but you are forced to take over a business you don’t really like.
- Your suggestions for improvement may be ignored if seniors in leadership do not accept progress and new ideas.
- You may feel like you're always at work. You work with relatives, spend your free time with relatives, discuss topics related to work outside of working hours, etc.
- Contrary to one of the advantages mentioned above, you could face a lack of authority and be perceived as the son / daughter of the founder, despite all the efforts made.
- Working with relatives can be difficult at times. Different opinions and contradictory discussions will always occur, but when you have these discussions with someone close to you, they tend to exceed the professional limit.
Advantages and disadvantages are always a part of any decision you make, whether you stay in the family business or follow your own road. Before making a final decision on this, ask yourself the following questions:
- What motivates you to stay in the family business?
- Do you have "healthy" relationships with your family members?
- Can you accept that your every move will be judged by relatives?
- How will your career evolve?
- Does your vision for the company coincide with that of the older generation? And if not, will they accept the changes you want to make?
- Can you separate family activities from work activities in order to maintain good relationships with relatives?
- Will you be able to resolve professional conflicts without affecting your personal relationships?
The decision to stay in the family business can be one of the best decisions you can make in life. Or not. Take the above into account and research all aspects before making a decision.
And, if you are the happy case in which all the stars line up in favor of taking over the family business, do it better than everyone expects and take the business to another level, much higher and more profitable than it has ever been.
