When you picture a family-owned business, it’s easy to imagine a restaurant—a cozy place with a warm, inviting atmosphere, rich with history and connection. A family business offers more than just profits; it’s an opportunity to cultivate skills alongside loved ones, create a shared legacy, and uphold a vision unique to your family’s values.

However, family businesses are far more diverse than this nostalgic image suggests. They span nearly every industry, from innovative tech startups and sustainable construction firms to healthcare providers and retail enterprises. These businesses are often woven quietly into the fabric of our communities, creating dynamic career opportunities and cultivating distinctive workplace cultures that extend well beyond the restaurant industry.

Yet, as with any entrepreneurial venture, family-owned businesses come with their own set of challenges and rewards. In this blog, we’ll explore key considerations for those thinking of embarking on this path—offering insights into the unique journey of building a business with family, and why it may just be one of the most fulfilling career choices out there.

Reward: building strong family bonds

All families have unique structures and roles. A family-owned business offers parents, grandparents, and children opportunities to develop and showcase new skill sets. Having a shared goal as a family can bring you closer together while building trust and respect.

Reward: a cherished legacy

The prospect of a business legacy is hugely enticing for successful family-owned businesses. Owners can “pass the torch” to younger members, building generational wealth that will support future generations.

Reward: vision & control

As the owner of a family-owned business, you’re in a unique position to have the greatest control over how your business operates and where you’re headed. You’re likely to focus on long-term goals rather than flash-in-the-pan wins, and by combining this sustainable growth plan with a clear roadmap, you’re on the path to success.

Reward: your business, your way

Consider the phrase, “I didn’t start my family-owned business just to maintain the same hours as a corporate role.” For many family-led business owners, the flexibility of running your own business is a major drawcard. From creating a work-life balance that suits you to planning leave and closure times for holidays, you can design a business that’s a pleasure to work in.

Risk: conflict & clashes

While it’s true that families know each other well, it can bring out the worst in us (consider classic parent-child dynamics at any age). Mixing business and family within a group of people with personality clashes can lead to conflict within the business. Managing finances and responsibilities and navigating important business decisions can all be made more stressful by personal feelings taking centre stage.

Risk: succession stressors

While you may have a vision for your child or grandchild to take over leadership of your family-owned business when the time comes, this is not always a simple process. Changing financial demands, geographic location, and waning passion for the business can mean you don’t always have the option to continue the family legacy as planned.

Risk: skills mismatch

Optimism is essential, but so are practical skills. If planned poorly, a family-owned business can swiftly flop without a skill set to power daily operations. For instance, a family-led tree-cutting business might seem viable if the owner is a certified arborist. Still, they won’t have a business for long if they have no team member capable of managing bookings, numbers, and marketing.

Risk: too many cooks in the kitchen

Opinions are great, but not when there are too many. Family-owned businesses can be rife with conflicting interests and goals – you may have a family member keen to sell the business and reap the instant cash rewards, while another wants to grow for years to come. This can lead to disharmony within the family or avoidance of key decisions that must be made promptly.

No business comes without risks, and a family-owned business is no different. It’s important to go into this endeavour with an open mind and clarity over your business plan and timelines and to agree on these in writing with the family members you plan to work with.

Before you take your first steps, assess the risks and rewards and where you sit within the balance. Then, seek professional guidance and support in the early days of your business to ensure you start on the front foot. Next time, we’ll examine your business’s succession plan and how to pass the torch.