What are the advantages and disadvantages of family businesses?

Answer 1

I currently own a family business. I will list in 2 separate sections the pros and cons that I have found thus far.

Pros - You can make your own hours.

You can write off just about anything as "business related" I.e. - clothes (uniforms) Gas - (travel expenses), Hotels (travel expenses), Need cash? (Pay yourself contract labor for "Mowing the premises") Pretty much anything, us your imagination. Just don't get greedy!!! That is how you get caught! :P

You can choose your own team of people.

All of this means more family time, and more money in the bank. Isn't this what we are all looking for?

Cons : Government, government, and government. Evn if you own your own business the government wants to get their little taste. And by "little" taste I mean anything that they can get their greedy little hands on. You hav etbe careful because expenses turn into taxes and taxes turn into taxes and then after all of that is said and done, you have to pay taxes. Most people do not realize how bad the government is on small business owners until they own their own. Just be careful and cut whatever corners you can, especially in the beginning. Most new businesses fail in the first few years because they see the money coming in and go crazy in spending. Then at the end of the year when uncle sam wants his money, they don't have it. Another thing to be wary of is the old, "I own it so i don't have to work" attitude. This could not be farther from the truth. Your business WILL fail without your involvement.

I only recommend this for people with a decent amount of liquid assets, and the knolwedge to be able to keep up with all of the paperwork. Other than that small bit of advce, Good luck!!! :)

Answer 2

family business has a number of advantage. Firstly,every member in the family is a strong link so they are often fiercely committed to make business success. Secondly,family members are also sensitive to one another's need. If someone has a major crisis other family members can respond accordingly, taking that person' s work.In addition, family participation can strengthen the company because family members are often loyal and dedicated to the family enterprise

On the other hand, family business still has the bad points.The interest of a member may not be aligned with the interest of the business is the first drawback.Another disadvantage is the interest of one family member may not be balanced with others family members

Answer 3

the advantages of a family business is that you can make lots of money for your family and yourselfdisadvantages of the family business is that you can sometimes not have enough money and due to weather nowadays there's less business going on.