EmpressofBiz, Biz Tips Family own business is a good thing..IF

Did you know Small Business and family can be a good thing?

Look at the facts below......

Family owned businesses are central to the U.S. economy.

There are 5.5 million family businesses in the US. (FEUSA, 2011)
 Family owned businesses contribute 57% of the U.S. GDP (that’s $8.3 trillion), 
Employ 63% of the workforce (FEUSA, 2011), 
and are responsible for 78% of all new job creation. (Astrachan & Shanker, 2003) 
35% of Fortune 500 companies are family-controlled. (Businessweek.com, 2006) 

The Family owned business is a good thing.  We do great things.  If you are thinking of starting a business having your family involved can be great...if all people are on board.  If not then it can be a short trip to divorce or bankruptcy.  

    One thing      that must be talked about.....is money! Their financial stake in the business, If you are in business with your spouse, significant other or family...how do they get paid for what they do? Too often the spouse or children are the "unpaid labor" of the business..and while this is a "nice" perk of a family owned business..it is one reason that the other person starts to resent the business.

As a small business specialist and consultant I have the the task of working with clients who have not thought this through and the anger has built up to the business and the relationship is in trouble.

 The excuse I am often giving by the owner she gets my paycheck..so what's the problem?

Not a good answer..and the answer starts to creates a lot of hard feelings. Being love and helping is one thing...but the paycheck designates RESPECT for that person too.. Also not paying for tasks performed by loved one or family member .gives you a false perspective of what it costs to run the business. 

Money is the topic most of us avoid talking about ...but it does impact the personal relations and it is better to address this upfront and not let it become an explosive issue later on.