Few new businesses grow into global giants that make their owners rich. In fact, most new businesses will fail within ten years of opening. A new business owner must have done their homework. They must understand the market and the market players because they will have to make many challenging decisions that could make or break the business. Many entrepreneurs will invest in the business and may even borrow money to get their ideas off the ground.
Starting a family business can create a whole new dynamic. This helpful infographic shows how many of America’s most successful businesses have been born from the collaboration between members of the same family. The Walton family is the perfect example. Sam Walton used family money to set up and grow Walmart into what would become the biggest corporation and the biggest private employer in the world.
Families starting their own businesses will, no doubt, face many challenges. Learning from successful family-run businesses makes perfect sense.
There are both advantages and disadvantages of working with family. There is comfort in working closely with people that know you well. The level of trust between family members is likely higher. Family members will work harder as they have a vested interest in the success of the business.
On the downside, family members may be more difficult to manage and disagreements could follow you home. Family dynamics may affect the morale of the rest of the work team and may need careful management. Learning from people who have gone before you could give you the edge in the competitive world of business.