When MY Business becomes OUR Business

Home Business: In this article from the Small Business Administration, we see the challenges when family members work together.

“When you put up your own money and operate your own business, you prize your independence. It’s MY business, you can tell yourself, in good times and in bad.

In a family company, however, it’s OUR business.

When family members work together, emotions may interfere with business decisions. Conflicts may arise as relatives see the business from different perspectives. Those who are silent partners, stockholders and directors are likely to judge capital expenditures, growth and other critical matters primarily by dollar signs. Those engaged in daily operations are more likely to be concerned about production and sales figures and personnel matters. Obviously, there is potential for conflict.

In some family companies, daily operations are hampered by conflict; in others, the challenge is a high turnover rate among nonfamily employees. Growth also may be a dilemma if some relatives are reluctant to plow profits back into the business. Conflict in the business also can be aggravated by family members who have little talent for money or business — the offspring of company founders who lack business acumen or in-laws who must be employed without regard to their ability or the company’s needs.

The manager of a family-owned business faces the same challenges as the owner-manager of any small company. However, the job of family manager may be complicated by relatives who must be reconciled to working together in a business.
This publication discusses such challenges from the viewpoint of the family member who is the company’s manager or who is involved in management. It offers suggestions to help you manage effectively and profitably.”

Read Entire SBA Article Here