Are You Ready To Meet The Challenges Of Starting A Family Business

Are You Ready To Meet The Challenges Of Starting A Family Business

Are you one of the millions of people around the world that no longer wish to work for someone else? Has your effort and loyalty not been rewarded by your boss over the years you have stuck by them? Has it finally come to a head whereby you cannot bring yourself to work for a faceless company and just be another cog spinning the gears? You’re definitely not alone if you are thinking and feeling these sorts of things. In fact, it’s why many people see the venture of starting a family business as not just something that could be profitable, but give peace of mind too. When you’re surrounded by people who love you and want to see you succeed, the atmosphere at work alone could fuel your passions to glory. Every bush of roses despite being pretty, does have its thorns, however. There are some issues you need to iron out before they are allowed to topple your good intentions and potentially ruin family relationships.

Aims and values alike

Here’s where it gets tricky, and yes it’s not even the second thing yet. Despite being close and having affection for one another, your family members who are involved in the business must share your aims and values as you. There can be no disparity between what you want to achieve and what your family now partners want to achieve. That’s not to say you can’t have disagreements with how you get to the intended goals, but the goals themselves must be shared among everyone. Like treading on thin ice for some people, and if this happens to be the case, sorry but it’s not going to work. It’s not the same as an employee disagreeing with you because they don’t have any authority. But business partners do, so be careful.

Values are also extremely important as they guide the ways you run the business. Essentially, having a shared integrity is what you need for businesses that have multiple partners. Corruption doesn’t just destroy family businesses; it ends relationships; you’re playing with fire again here.

 

Making the step

You’re a family business only in name, literally. The mum and dad shops are a classic example. They’re local, in touch with the community, everyone around the area knows who they are and usually on a first name basis. However, in the eyes of the law, they’re just seen as any other business. As long as you are not registered as a company, you’ll be classed as a sole trader. You’re liable for anything bad that happens to customers when using your products, and legal action can be taken upon you personally. It’s like any Tom, Dick and Harry can point a dagger at your heart at any moment. It doesn’t give you the best of feeling, does it? So as a family business with multiple owners, that play the role of investors, founders and directors, you can register your business as an LLP. yourcompanyformations.co.uk are based in UK and have package deals for those who use them as the gateway to becoming a limited liabilities company. LLP stands for limited liability to members, i.e. partners. You don’t get old any obligation to shareholders or investors. The service provides a choice of five packages that all come with their own perks designed to help run the business itself.

 

Credit geralt

Are all partners equal?

Aside from being financially required to meet their end, are all partners going to be truly equal? The cut and thrust of it are, no, they’re not. We all have different temperaments and techniques for getting the best out of ourselves. Some people are more physical, and others like to use their brains to coordinate. A family member feels part of the team, but they would do better working on the shop floor, interacting with customers, stocking shelves, and dealing with deliveries etc. Another will be better at mathematics and thus lead the financial accounts of the business from the back room. Another will be better at marketing and talk with potential investors or sealing the deal with a company who wants to sign a contract with the business. It’s important to openly discuss each other’s strengths and weaknesses to make sure the best person for the role is chosen.

A family business can be a dream come true. Who else could you share success with better, than the people you love? Just because you’re each other’s flesh and blood, doesn’t mean you can take it easy on each other. Don’t tiptoe around issues such as aims and values because as partners, you rely on each other to have the best interest of the business at heart.

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Lynn Beattie

Aka Mrs MummyPenny

Personal Finance Expert

I write about personal finance made simple, lifestyle choices that will save you time and money, as well as products and services that offer great value.

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