Cons of Family Business
Last Wednesday we introduced you to what we think can be the advantages of a family business. Today we are going to focus on the other side of the coin: its cons.
Certainly, having a business with your loved ones can be a great time and occasion to unify the economical and personal part of your life. However, there are some pros and cons of why you should or shouldn’t think about opening a family business. Since we have already explained some of the pros, today we’d like to talk about the cons of it.
If you are thinking about starting a company, restaurant, bakery or a bar with your relatives, take into consideration also those disadvantages, before making your final choice.
So, here are the most important cons of family business, from our personal point of view.
Hard to separate work and home
When working with your relatives every day, you will end up spending every single moment of your life with them. This means that you will meet them during your free time, special occasions, like birthday parties, holidays and work routines. You will never have moments left by all yourself and will always have someone to share moments with, to give an explanation to your behaviors and decisions. Addictingly, if you had some difficult moments or discussions with them in your past, you should take into consideration that those situations may happen again, and maybe more often since you share your company.
This won’t allow you to separate your work and personal life, which for some people is very important in order to keep a balanced lifestyle.
It can ruin your family relationships
If you work with a relative and some contests arise, you won’t be able to escape them. On the contrary, you will have to face them and keep discussing every day until an agreement is reached! If you fight due to some business reasons, you could also end up talking about it also during holidays, when all your family may be present on this occasion.
We believe that these circumstances, if not well handled, can ruin your family balance and annoy your relatives. Think about it: if you have some business problems and you talk about them during family meetings, how do you think the other relatives would react to it? We guess that they wouldn’t be so excited to hear all time about your financial problems.
Financial issues will affect all family
Of course, we hope that financial crises won’t happen but, since we can never be sure about it, we would also like to point out this possibility.
In case some financial problems are present, these will affect you and your partner/s. In other words, you will lose money. So, also all the people involved in this business. Since in a family business, relatives are involved, these crises will affect a big part of your family. Therefore, you may lose your job together with your family, which indeed will turn out to be a several and delicate situation to face.
Hard to give sincere feedbacks and to achieve promotions
If one of your family members doesn’t work enough hard or commits a mistake, it can be hard to give him negative feedback. In fact, this type of feedback may be taken too personally from your relative and impact both your personal and work life. Performance feedbacks are very important in a business and avoiding them just not to hurt your relative can be very unproductive.
Likewise, when working with family, it can be hard to get a promotion and favoritism can be very frequent. Sadly, this way doesn’t allow skilled workers to grow professionally but permits just the favorite ones to reach higher levels in the family business.
In conclusion, working with your relatives can make harder to separate private and work life, can be a challenge in your family balance and make more difficult to advance in your career.
Our final question is: are you ready for it?