For some people, a family business is the best type of business to establish. On the contrary, a family-owned company is just similar to any other business. It also has a fair share of advantages and disadvantages. Read along with this article and determine the drawbacks and benefits of working for family business.
The advantages of Working For Family:
If you’re working for a family business, you no longer have to worry about trust issues. Unlike being an employee of another company, you still have to exert extra effort to gain your boss’s trust.
Working for a family business will also spare you from various tax concerns. Oftentimes, tax payments are reduced if a company is owned and run by a family.
Name and reputation
If your business already has a good track record, you will surely be extra proud of your surname. You haven’t exerted any effort yet, but you already carry a surname full of positive feedback. Working in your family company will further increase that reputation.
Try to imagine a business with no problems regarding shares and dividends. That is quite possible if you’re working for your family business. You can easily re-invest your cash from your own business when the going gets tough.
Less training time
The best advantage would be less time for training. Unlike other businesses, working in a family-run company doesn’t require you to undergo training.
The drawbacks of Working for Family:
Because it is a family business, expect you to deal with jealousy from other employees. Other family members and relatives may also be jealous, especially regarding promotions and salary increases. This is hard to avoid when running a family business.
According to experts, it’s easier for a family member to steal from their own company; rather than an employee to steal from a company he doesn’t own. This is because family-run companies are overstuffed with trust that they don’t keep a close eye on financial status.
Your niece, the Head Supervisor of the marketing division, might be dealing with marital problems. And her coming to work with that aura indeed affects her decision-making ability. Long story short, your company is in jeopardy.
Because this is a family business, being promoted is not difficult. However, in some cases, family members tend to be promoted despite their incompetency. If you know you’re not ready for the position, declining any promotions is wise; otherwise, suffer the consequences.
Family-owned companies are also prone to rules and regulation concerns. No matter what type of rules you put up, if other members are stubborn, those rules will be useless. That is why you must be extra firm when creating new regulations for your business.
It is a fact that working in a family-owned business is easier than applying to another company. However, you should also take into consideration the drawbacks that are entailed. Be sure to weigh things carefully before making your final decision.