Starting any small business can be exciting and overwhelming. Having the right support certainly helps. When your family is on board, not only do you have cheerleaders in your corner, but you could also have the makings of a leadership team. Consider some of the following pros and cons of starting a family business before you decide if it’s the right route for you and your relatives.

Family Business Advantages

Tight-knit families that share the same values and goals already possess some of the key characteristics of a successful business. Here are some additional strengths of a family-run company:

1. Stable. Families bring a built-in support system integral to the foundation of any company. Whether the business is lead by the matriarch or patriarch of the family, there’s also a natural leadership quality that elicits trust and loyalty.
2. Committed. There’s more at stake in a family business. It’s not as easy to walk away, increasing accountability and drive for seeing the business succeed. This desire motivates a more thorough understanding of the industry, dedication to the job, stronger customer relationships, and more effective sales and marketing.
3. Flexible. Some may think they can get away with more when working for family. That may be true in some cases, especially when a family emergency arises. But role responsibilities can also fluctuate more than a traditional work environment, requiring family members to take on different tasks to support each other and the business.
4. Goal-Oriented. When your family relies on the success of one business, the goals become more long-term than if you were to take on any other job.
5. Cost-Effective. During challenging times, businesses cut costs—and sometimes employees—to keep the doors open. In family businesses, sometimes it’s those related employees that are willing to contribute financially to keep the company afloat.
6. Loyal Customers. Not only are the employees more loyal to the company, but often customers prefer to support a family-run business over a corporate conglomerate. Family firms can capitalize on this by continuing to strengthen customer relationships by showing their appreciation and providing quality products and services.

Family businesses offer many personal and professional benefits, but there are still some cons to consider.

Challenges of Working with Family

Not everyone is close with their families or share the same dreams and desires as their ancestors who may have started a business in the hopes of passing it down. This pressure could lead to company conflict, which isn’t good for the business or the family.

1. Engagement. Any business with bored employees is less likely to succeed. If employees are only there because they feel forced or because it’s their birthright, it doesn’t do the family or company any good. Plus, it may be harder to fire a family member.
2. Dynamic. Whether there’s conflict between relatives or the work/life balance lines are constantly shifting, this isn’t good for business.
3. Management. Problems still arise whether you’re in a family-run business or not. How you deal with these problems can affect both your professional and personal life dramatically. Having a strong structure in place is paramount, even if that means going outside of the family to find the professional input you need to succeed.
4. Finances. When your family depends on the business, you’re also putting your personal finances at risk.
5. Nepotism. Promoting family members before more qualified employees can cause friction in the company and at home.

The key to any successful business—family-run or not—is a clear understanding of the strengths and areas of opportunities. Families who are open to honest discussions about company and family needs are more likely to succeed personally and professionally.