Is Starting a Family Business Right for You?

Embarking on a new business venture with your family may seem like an exhilarating opportunity, offering the potential for financial success alongside your loved ones. However, is it truly the best path to take when starting your own business? The decision to mix personal and professional lives can bring both rewards and challenges, depending on factors such as the type of business, the family members involved, and the allocation of responsibilities and profits. Before diving into a family business, it's crucial to weigh the pros and cons to make an informed decision.

Key Considerations Before Starting a Family Business

In the U.S. alone, there were 31.7 million small businesses in 2017, with 31% being family-owned and operated, according to the Small Business Administration. The concept of launching a family business holds appeal for many entrepreneurs due to various reasons, such as existing trust among family members, the ability to keep revenues within the family, and the potential for generational succession. However, the process of starting a family business involves careful planning and consideration of challenges that may arise.

Running a small family business presents its own set of challenges, from interpersonal conflicts impacting the workplace environment to a tendency towards leniency in decision-making due to familial ties. Through interviews with family businesses across the U.S., we aim to explore the advantages and disadvantages of collaborating with family members in a business setting.