Should you Join your Family Business?

Ask any entrepreneur, and they would tell you that starting a business is not an easy task. You have to give it your blood and sweat and then to about 9 out of 10 startups fail. Wouldn’t it be amazing if you got to be a part of an already established business which you might get to run on your own one day? Well, that happens when you have a family business.

Many of us find ourselves at a crossroads in our life where we have to choose between whether we want to forge a career by ourselves or join to the family business to take the legacy ahead. Do you find yourself in the middle of a similar situation? We understand what you must be going through. Your family may be putting pressure on your to join family business while your inner self might be pushing you to make an identity of your own, and you are torn between the two options. Are we anywhere close?

Well, if that is the case, then you are on the right page. No, we are not going to tell you which option suits you the best, only you can do that, but we are going to help you get the right answers. Here are some pros and cons that will help you decide whether you should quit a job to join family business or make your own way.

Pros of Joining The Family Business

#1. Loyalty And Trust

If you have even a very little exposure to the corporate world, then you would know how rare loyalty and trust are to come by in business these days. Employers cannot trust their employees to stay with them through thick and thin, and same is the case the other way around. However, that is usually not the deal with family-run firms. Family businesses are ideal, at least theoretically, because family members lay a loyal foundation for the company. They are also more committed to the organization and its success more than employees since they have their own stake in the firm.

#2. Flexibility

Another good reason to join a family business is flexibility. Nobody is going to be more lenient and forgiving to you than your own family, whether you talk about work-related decisions, work schedules, judgments or perhaps mistakes. The corporate world is a profit-oriented one, where there is not much scope for mistakes. In order to survive, you have to perform, and if you can’t, then there are 10 other people ready to take your position. Working in the family business, you get the chance to learn things at your own pace, and people you trust are always there to guide you.

(Image Courtesy: In the Black)

#3. Stability

Today’s economic scenario is highly dynamic that is why many people join family business looking for stability. As a member of the household, you have inherited a stake in the family business and a position which no one can take away from you, almost. The leader of a family business is typically selected through succession; therefore, there is longevity in the leadership. This, in turn, results from instability in the organization as well as in the career of the people working on it. A leader of a family business traditionally retains its position until a grieve event such as retirement, illness or death.

#4. No Going Up The Ladder Or Proving Yourself

In the corporate world, you need to prove yourself before you can take a step up the ladder but a family business is a whole another thing. Your position or superiority in the business determines your rank in the family business. Working for someone else, you need to work hard for every promotion and persuade your boss that you are worthy of a hike. But such is not the case when it comes to family business. Your position in the family is your ticket into the company, and there is no need for you to prove if you even have the skills or knowledge to justify the job you have been bestowed upon with.

(Image Courtesy: Entrepreneur)

#5. Be Your Own Boss

When you are a part of the family business, you may not necessarily be the leader, but you are your own boss to some extent. Unlike in the case of working for anybody else, here you get the chance to be creative and give life to your ideas and take chances. Of course, you will need a mentor to guide you if it is the beginning of your career, but undoubtedly you will have much more creative freedom in the family business than working for somebody else.

Cons Of Joining The Family Business

#1. Conflicts

Conflicts are inevitable in business as the entire higher management may not agree on something. But that is usually manageable. But add to the family relationships and long history, and what you get is a recipe for disaster. Long-lasting fights or grievances between the people involved in a family business prove to be catastrophic for the family as well as the business. Since family members are involved, it can become more difficult to resolve. Furthermore, these also tend to affect those members of the family who are not even directly involved in the family business.

(Image Courtesy: Gaebler)

#2. Unstructured Governance

Unsurprisingly, if you are thinking about joining the family business, you will also have to face the issue of unstructured governance. In a family-run firm, position in the family supersedes skills, experience, and knowledge. Meaning, the elder brother may get the charge of the organization even when the younger brother may be more capable of running it. Therefore, no matter how skillful or capable you may be of handling the business, you may not get the chance to do it unless you are next in line as per the family hierarchy.

#3. No Individual Identity

When you join a family business, you become one of its representatives who has inherited a position in the firm. So, you may have trouble forging your own identity in the industry, and you may also not get the respect that you think you deserve. In the family business, you are your father’s son or your father’s daughter, and that is how you are going to be known for the better part of your professional life. So, if you are looking to be a self-made person or someone who has an identity that is not based on the family he or she is born in, then maybe joining the family business is not for you.

(Image Courtesy: Doing Business)

#4. Unfair Comparisons

If you are joining the family business, then be ready to fill in somebody else’s shoes and for some impromptu comparisons because now and then people will compare you to your father or any other family member who led the business before you. Mostly in a family-run organization, you are one generation in a long list of successors who you will consistently be compared to at every step of your career. That comparison can put pressure on some people, leading to frustration. So, before you decide whether you should join the family business, ask yourself if you are ready to fill in the shoes and be compared.

#5. Nepotism

In a family business, only the family members tend to occupy the highest positions or ranks in the organization, and seldom outsiders are allowed to fill in the crucial position. This limits the organization’s success. An outsider may be able to help the firm better owing to his understanding of the industry or the business environment, but since no person who isn’t a member of the family is permitted to take a pivotal position in the business, the organization can succeed only to a limit. Therefore, you need to realize that you will be tied to a company with very limited future before you make your mind about joining a family business.

(Image Courtesy: AARP)

Now that you are aware of the various pros and cons of joining the family business, you can zero in on what the best option for you is. Before you go, spare a few seconds in telling us if you think joining the family business and becoming a part of a legacy is a good choice or should you make an attempt towards weaving an empire on your own. Also, give us your views about the article. We would love to hear from you.

(Featured Image Courtesy: In The Black)