PROS & CONS FAMILY OWNED BUSINESS

PROS & CONS FAMILY OWNED BUSINESS

       Group Name :      Bagus Astradi W
Enrico Chiesa R.P
Taufik Akbar

Pros & Cons family owend business A family business is a commercial venture in which family members are involved. A family business can include many possible combinations, such as parents and children, husbands and wives, multiple generations, and extended families taking the roles of board members, stockholders, advisers and employees. There are some benefits associated with a family business, but there are also some detriments associated with undertaking a business venture with your family.

The Pros of Starting a Business with Family

1. A greater incentive to work hard. One of the potential benefits of running a family business is that your family members may work harder than a typical employee, and may even work harder than they did at other jobs. Because they have a vested interest in the success of the business and want to be seen as equal contributors to the enterprise, their extra effort could help ensure the success of the business.

2. A certain comfort in working together. Starting a new job is often uncomfortable and even depressing as you learn to maneuver around others’ work styles and figure out the best ways to work together. With family, there’s a kind of existing shorthand where each family member knows the other’s ticks, traits, strengths, and styles. It can give you a leg up in getting started, and may help you not get caught up in otherwise unknown character flaws.

3. Getting in a better mood. Starting a business is a wildly stressful exercise, which is why experts suggest that only entrepreneurs with extremely high confidence start a new business in the first place. With family members around, the mood in the workplace could be more relaxed because of the comfort level between family members. They’re also likely to be more empathetic as well as supportive of your shared business. 

4. Easier decision making. In a family-run business, there are less likely to be political minefields and office politics to maneuver around. Because you share values and history, this could make it easier to make tough daily decisions about the direction and orientation of the business.

5.  A shorter learning curve. If you’ve been running an enterprise for some time, surely your family members have some base knowledge about just what it is you are selling, managing or producing. They may even be wired with the same genetic interest in your business, and having them join the business may in fact play to their strengths. Because you don’t need to spend as much time getting them up to speed, this could save you time and money in attracting talent.

The Cons of Starting a Business with Family

1. Family can be distracting. Let’s face it:  family disagreements can distract your focus away from running the business. Old feuds, long-simmering resentments, and unresolved conflicts can all make it harder for you to focus on your customers, improving your product and services, and growing the business in general.

2. They may break the rules. One of the risks of hiring or partnering with a family member is that they may break the rules—where a traditional employee or a formal partner will not. Whether they’re doing it subconsciously or simply taking advantage of the fact that they are family, it’s a dangerous practice to tolerate in the delicate early days of a new enterprise.

3. Inspiration may go wanting. Running a business was never supposed to be comfortable. If things become too comfortable and secure, it can stifle the desire to produce excellence, boost professionalism, and embrace fresh ideas.

4. They can inspire hard feelings among others. If your family member is not your only partner or employee, things can quickly escalate to the point where others resent your family member for taking advantage of their relationship to you. It’s important not to give the impression that your family member takes priority over other employees or partners simply because they are related to you.

Source :- https://r7fdc.com/pros-cons-running-business-family/
   -https://smallbusiness.chron.com/pros-cons-family-business-409.html

   -https://businesscoachessydney.com.au/3-things-to-do-before-you-take-over-the- family-business-infographic/