America was practically built on the backbones of family businesses. Some of the biggest corporations in the U.S. began as family businesses, i.e. Wal-Mart, Ford Motor Co., and Mars, home of M&M’S® and other favorite chocolates. There are a number of benefits that come with operating a business under the umbrella of your family. When family businesses are set up properly, with forethought and planning, here are some of the benefits:
Common Threads and Values
Families tend to share beliefs, which lets everyone have the same agenda and work toward the same goals.
Commitment to the Business
When the family is involved in the business, they’re more willing to step up and put in the extra hours, or even cover home chores while you put in extra hours.
One of the key ingredients every business needs is a sense of loyalty and dependability when things get tough. Because your family already has strong personal bonds, they’re more likely to stand behind you during all seasons of the business.
Family businesses are generally very stable, because they are always thinking about long-term growth for the generations to come.
Family members often accept lower salaries, because they understand it will benefit the business in the long-term. Even more than just salary differences, there may be lower costs when it comes to business insurances.
To ensure success in your own family business, you will need to deal with the challenges of family businesses. There should be clear boundaries in the roles and responsibilities of everyone, both inside and outside of business. Before getting too far into the business, you will want to consider how the business shares are divided, and what rewards will be extended to those members in the business and those who were supportive, even though they may not have put in their financial support.