Family firms can be extremely successful and we are the first to recognise and celebrate their success.
On the other hand, the very nature of families and the dynamics of family relationships can lead to issues that would not necessarily come to the fore in non-family businesses.
It is imperative that family firms only employ family members when there is a clear need, and they are the right candidate for the role, and they are suitable for now and the future of the business.
This article highlights a number of common mistakes that families in business together make, and suggests simple steps that can be taken to avoid the pitfalls too.
When it comes to successful business partnerships, relatives feature highly. Two thirds of British businesses, 4.6 million in total, are family firms, and many of them have been trading for hundreds of years, a testament to their ability to innovate and move with the times. While there’s no disputing their success as a business model, the added emotional complications of running a business with parents, siblings or offspring can compromise decision-making.