There are many reasons to start a family business, however, let us focus on the most important ones in this article.
Why do families consider starting a family business? What are the benefits behind it and why should other families follow suit?
Wealthy and famous families that runs world class businesses like Walmart Inc., Volkswagen AG, Berkshire Hathaway Inc., Exor N.V and many more have succeeded in building a world class family business that will be passed on from generation to generations to come.
Hence, let us talk about family business and why it is so important to start one.
What Is A Family Business?
In very simple terms, a family business is a business that is owned or run by members of a single family.
In other words, a family business is a business which is actively owned, operated and managed by two or more members of a single family.
Here, family members may be related by blood, marriage or adoption.
Basically, in a family business, a single-family owns majority percentage of it’s ownership.
It is a private business where a family has the largest share holdings.
Hence, let us check out the most important reasons to start a family business today.
14 Important Reasons To Start A Family Business:
1. A Family Business Helps To Promote Unity And Oneness In A Family:
Running a family business will foster unity and oneness in a family.
Everyone gets the opportunity to work with their loved ones and share the joy of family relationships.
Hence, family members get the chance to see and relate more often.
2. To Cover For Major Family Expenses:
One of the most important reasons to start a family business is to reduce financial pressures on Individual family members.
A family business could be a good way to make money to cater for family expenses.
There are situations when emergencies might arise in a family and they start seeking for funds.
If a family has a good business, such expenses can be cheaply paid off by the family business and everyone will stay happy.
Hence, individual members of the family will be free from financial pressures.
3. To Pass Entrepreneurship Mentality To Everyone:
If you take time to research about families that run businesses, you’ll discover that almost every member of their families carry the spirit of entrepreneurship in them.
Entrepreneurship is always passed down in those families.
4. To Provides Job Security For Everyone:
Everyone gets the privilege of job security when a family runs a business.
Imagine a family member of Berkshire Hathaway Inc. seeking for jobs and applying from one company to another.
That is almost impossible right? Exactly.
This is because Warren Buffett has succeeded in building a business that provides jobs for everyone.
5. A Family Business Will Make Every Member Of The Family Resourceful:
It makes every member of the family resourceful because everyone has a role to play in making the business successful.
Since the family runs a business, everyone becomes responsible to do something to add value to the family.
Hence, such families produce relevant business owners and entrepreneurs who learnt how to run a business from home.
6. One Reason To Start A Family Business Is To Eliminate Stressful Job Recruitment Exercise For The Family:
Family members will enjoy the benefits of free not having to suffer job recruitment processes.
Job seekers might always go through one tension or the other why trying to secure a new job.
Hence, aside from getting job security from the family business, they escaped some stressful recruitment exercises involved in job hunting.
7. Uniformity Of Ideas Is One Of The Best Reasons To Start A Family Business:
Since the whole family works together, it becomes easy to merge ideas to achieve any set goal.
Family members with common background can easily relate together without any bias feelings or differences.
Hence, their will be no room for tribalism and racism as they run the business together.
Similarly, when a common idea is accepted by all, it boost workers motivation and willingness to work.
Also, the trust level of individuals will increase because it is easier to work with and trust families than strangers.
8. It Gives Good Reputation To The Family Name From Generation To Generations:
A family business does not only cover for family expenses, it also preserves the family name.
It brings honor, dignity, recognition and reputation to the family name.
It makes the family famous for being entrepreneurs.
Such families will also enjoy the honors of a problem solver in their society.
9. One Of The Most Important Reasons To Start A Family Business Is To Pass A Legacy:
Starting and running a family business is one of the best ways to leave a legacy for many generations to come.
For instance, think about those families you consume their products and services from time to time, you’ll discover they have made a remarkable legacy in history.
They have succeeded in building a society of comfort for other.
In addition, people are always willing to do business with them because of their years of business legacy.
This is one of the most important reasons to start a family business today.
10. You Can Start A Family Business To Reach Long Term Goals:
It will become easier for family members to reach their long term goals if they work together.
They could have a goal to eradicate poverty in their society, create welfare development for the poor and help the less privilege.
For instance, in a football match, every team member works together to score a goal and win the game.
The same rule is applicable here.
The bottom line is that it’s easier to achieve a goal when everyone works together towards it.
11. To Eliminate Bad Business Management:
Bad business management can be cheaply cancelled because everyone looks towards the business.
Also, bad work relationship between employers and employees can be cheaply eliminated.
Family members in business can maintain one voice and stick to it.
Hence, with good management, there will be no room for waste since everyone works in the process together.
12. Family Members Will Work As Business Owners Instead Of Working For A Paycheck As An Employee:
Have you ever imagined if your brother was the managing director of the company you work now and your father is also the board of committee chairman.
The way an employee works is different from the way a business owner or an entrepreneur works.
Everyone will be charged up to work when they know they are working for their future instead of a paycheck.
This is because they have no where to run to if the business fails.
Hence, family members will stop at nothing to see the business succeed.
13. Free Skill Acquisition Opportunities From Other Family Members:
Unskilled family members will get the opportunity to learn new skills from other family members who will be willing to teach them.
It could be sales and marketing management skills, production skills or customers service skills.
Unlike when families work apart, relatives can cheaply relate with people from their backgrounds faster to learn new stuffs.
Therefore, it gives room for free skill acquisition opportunities.
14. Many Business Locations Can Be Built In Different Locations Where Family Members Live:
The power to multiply will become very easy by extending the business model to family members who live in various locations across the world.
This way, the family can spread out and open multiple branches where other family members live.
Spreading out will also help the business attract more fame, customers and possible investors for greater business network.
Hence, one of the best reasons to start a family business is the ease of multiplications you get.
Therefore, take that bold step to start a business of your choice today.
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