Top Challenges Families Face When Running a Small Business & Why You Should Be Thankful
Studies show that small businesses, including family-owned firms, employ 50 percent of U.S. workers. By definition, family businesses account for 64 percent of U.S. gross domestic product, generate 62 percent of the country’s employment, and account for 78 percent of all new job creation. Small businesses are a legal and economic powerhouse and usually have a major impact on the communities in which they operate.
However, running a small family-owned business can be both rewarding and challenging for family entrepreneurs. On the one hand, you get to work with people you know and trust. On the other hand, there can be a lot of family dynamics at play that can make running the business difficult.
Here are some of the top challenges families face when running a small business:
When family members are involved in the business, it can be hard to separate certain work from family life. This can lead to defined communication problems, as family members may not feel comfortable talking about work-related issues at home or in public. Furthermore, family members may have different communication styles, which can further complicate matters.
It’s common for family members to have different opinions about how the business should be run. This can lead to arguments and conflict with the law within the family that can become public if care is not taken. Today, this sometimes takes a bad form and leads to problems with the law, union, government, public entities, operations, acceptance by potential customers, information challenges, known legal entity issues, questions from others, rights issues, and various other problems.
Lack of boundaries
Since family members are often close to one another, it can be difficult to establish clear boundaries between work and family life. This can result in family members feeling like they’re always working, which can lead to burnout.
Financial & legal difficulties
Running a family business can be expensive, as there may be a need to invest in modern office space, equipment, law/legal fees, and other resources over both the short- and long-term. Furthermore, family members may not always agree on financial matters, such as how to allocate profits or the best way to handle expenses.
Working with family members can be emotional, as there can be a lot of history and baggage between family members. This can make it difficult to resolve conflict or move forward with modern day decisions.
The rewards are great
Despite the challenges, many families find that running a family business can be a rewarding experience. By working together, family members can build strong relationships and create a successful business.
Here are some tips for getting along with family members in business:
- Communicate openly and honestly. Family members should feel comfortable communicating with one another about work-related issues. Furthermore, it’s important to have open and honest conversations about expectations, boundaries, and goals.
- Respect each other’s opinions. Even if family members don’t always see eye to eye, it’s important to respect each other’s opinions. When everyone feels like their voice is heard, it can help to reduce conflict within the family.
- Set clear boundaries. It’s important to establish clear boundaries between work and family life. This can help to prevent burnout and ensure that everyone has time for family and personal time.
- Work together. Family businesses can be successful when family members work together towards common goals. By collaborating, family members can pool their resources and create a strong business.
- Seek outside support. If family members are having difficulty getting along, it may be helpful to seek outside support, such as counseling or mediation. Sometimes, an objective third party can help to resolve conflict and improve communication within the family.
Family law & the bottom line
The bottom line is that, if you’re a small business owner, you know that it’s not an easy task. There’s a good chance that there are several pain points that can drag you down and make some days more challenging than others. You likely wear many hats and juggle a lot of different balls. But despite the challenges, there are plenty of reasons to be thankful that you own a small business. Here are just a few:
- You’re in control of your own destiny. As a small business owner, you get to call the shots. You get to decide what kind of business you want to run, and how you want to run it. That can be a lot of pressure, but it’s also incredibly empowering.
- You’re building something from scratch. When you start a small business, you’re starting with nothing but an idea. Over time, that idea grows and takes shape into something real. It’s a lot of work, but it’s also incredibly rewarding to see your vision come to life.
- You’re making a difference in your community. Small businesses are the backbone of the American economy. They create jobs, drive innovation, and help to keep local economies strong. When you own a small business, you’re playing a vital role in making your community a better place.
- You’re doing what you love. One of the best parts of being a small business owner is that you get to do what you love every day. You’re passionate about your business, and that passion shows in everything you do.
Here are the Top Ten Tips from other small business owners that can help you navigate tough days:
- You’re your own boss
- You can make your own hours
- You have the potential to make a lot of money
- You’re passionate about what you do
- You get to help other people
- You get to be creative
- You get to make a difference in your community
- You get to build something from scratch
- You have the freedom to fail
- You learn something new every day
These are just a few of the reasons why it’s great to be a small business owner. If you’re feeling thankful, remember how lucky you are to be doing something you love while also being your own boss. Sure, owning a small business can be tough. But it’s also an incredibly rewarding experience. So next time you’re feeling stressed or overwhelmed, take a step back and remind yourself of all the reasons you’re thankful to be a small business owner. You might just find that it makes all the challenges worth it.
By following these tips, you can be sure to make the best possible decisions as you launch your small business. Doing your homework now will save you time and money in the long run, so it’s worth taking the time to make the right decision. To learn more about how to make your small business a success, contact us at 239-349-9400 or email [email protected]. Provalet.io, a powerful and simple software that helps you run your field service company. With its user-friendly interface, you can manage your business without relying on pens, paper, or binders. Keep your business organized and running like a pro with Provalet.io.
This ProValet.io Blog Post is Part of a Series Designed to Help Small Business Owners Manage Their Field Service Software and Keep Their Business Running Like a Pro