Should I Expand Family Business or Start My Own?

So here’s the thing: should I expand the family business or start my own?

family business or own one

Photo by Karolina Grabowska

A business idea is a vision that you construct from the beginning and work your way up. Most of the time it is easier to invest in bringing a new vision to life rather than breaking and reconstructing the foundation of an old one. Especially in this new area of technological advancement which has given a place for entrepreneurship and startups to thrive. The statistics regarding the launch of these new startups are groundbreaking. In countries like France, Belgium, and the UK, startup companies have grown to 7% in 2017 in comparison to 2016. The growth percentage shows that these countries have created approximately 1 million new businesses in just a year. Across the globe, new businesses are going viral which can be an alarming situation for family businesses. 

Family businesses have existed for quite some time. If you are devoted to continuing the legacy of your family business, you should expand it as you can leverage the experience and momentum. However, if you are thinking about starting your own business, you need to develop a distinct vision and take action. If your family business has a weak foundation that can pull you back. In that case, why follow the ancient legacy when you are destined to be your own boss? 

Don’t let interpersonal relations trump the organizational structure

As soon as you bring people into your business, they bring with them their skill set and attitude for the job. In contrast, family business involves another factor of interpersonal relationships that trumps the organizational chart. Delegating duties among family members can be a source of conflict, as older members tend to not take your orders seriously.

Starting your business won’t let your interpersonal relationship affect your organizational structure as you will be hiring and delegating people without any emotional pressure. Thus, it will not be able to break down the collaboration necessary for business success. 

Put your lifestyle and schedule in your hands

Whether you are working for a company or for your family business, you will not be rewarded for your work and the owners will get all the appreciation. In contrast, when you raise your business from the ground up, you will reap the rewards. Further, you will not feel like you are running a rat race at the office. 

Setting up your own business gives you a more flexible lifestyle and schedule as you don’t have to report to anybody. You can either choose to work remotely or schedule a meeting at your convenience. When you are your boss, the sky is truly the limit for you. 

Leave the burden of tearing down and re-constructing behind

You should expand your family business if it aligns with your interests and passions. But, if you figure out that this isn’t really what you love to do along the way, then it’s better to walk away from it and start your own path.

When you start a business from scratch, you will be working from the ground up and can shape the foundations of your company as you would want. Your passion will fuel your efforts to build a business you will be proud of.  And you can use the help of employer of record services to build a big team for your business.

Alleviate the problem of mixing your business and personal finances 

Mixing your business and personal finances can be the biggest headache for you as it will eat up your financial freedom. Further, it can involve more risk regarding tax deductions and audits. You can leverage all the advantages associated with a business account when you start your own business. 

A virtual business account saves much more money than a traditional bank account. It offers competitive rates, more practical payment options, no account maintenance fees, and other options beneficial for businesses. They are easily operable and help in tracking your business cash flows. 

Final thoughts 

Deciding whether you should expand your family business or start your own can be a daunting task. However, if you have decided to take control of your future, it will empower you to expand your business. The prospect of facing new challenges, exploring new opportunities, and engaging in your passion every day is a compelling reason to start your own business.

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