01/ 25/ 2006
From the Young Entrepreneur Foundation
Perhaps you credit your entrepreneurial spirit to being raised in family business––but that doesn't mean you should take the business over. Before you partner with your parents, here are few pros and cons to consider:
Pros
Familiarity
You've probably spent more time at the family business than any other place besides home. So who better to take over than you? Even if you didn't spend your summers working there every day, you probably know more about the business than you think and likely have good ideas on how to improve upon the foundation your family has built.
Backup
In a family business, you'll never feel like you're going it alone, which is reassuring to some business owners. It will be a lot easier for you to take vacations and complete those college courses knowing that your shop is in capable hands. Even if your parents retire and the business becomes yours, you'll have a good relationship with a knowing source, should you venture into uncertain territory.
Willingness to teach you the ropes on your time
Even when you're serious about partnering with someone to go into or take over their business, some business owners––at least those who aren't family––might be skeptical about your intentions if you're always running off to class. Chances are your family wants you to finish college and will have much more patience when it comes to working around your schedule.
Second (and third) chances
Starting out in business is often more difficult that it seems. If you're starting with an established family business, you have a bit more cushion than someone starting from scratch. Also, you will have someone to catch your fall if you make a mistake and probably won't judge you harshly, unlike a business partner who doesn't know you better.
Cons
Professionalism
You don't have to see co-workers you don't get along with on your own time, unless they're family. For some people, it’s better to keep their personal and professional lives separate. Before going into business with any family member, ask yourself if there are issues in your personal interactions that might affect your working relationship.
Burnout
Just because your parents love the family business doesn't mean that you do; make sure that taking over the business is the right career move for you, even if you feel pressure to do so.
Resistance to change
If you plan to work with the family members who started the business, they might not want to turn over the reins to the next generation, no matter how good your ideas are. When first going into the business, it’s best to treat your family the same way you do your professors: with lots of respect, even if you disagree with some of what they say.
Easier to go on autopilot
Some people need pressure and lots of stimulation to truly succeed. While your family will be more willing to overlook your flaws, make sure you wouldn't be better off working for a more challenging employer, so you can gain some outside experience before returning to the family fold.
Harder to be objective about the chances for success
If your family wasn't already in this business, would you think of it as a viable option? Pretend you're starting a new business venture and go through the steps you normally would––conducting marketing research, coming up with your business plan and so on. You might find that you're taking over the business for sentimental reasons rather than entrepreneurial ones. Talk openly with your family about your shared vision for the business and see if you agree about where you can take it.
