Having started Thriving.Network with my business partner who happens to be my wife, our family business issue really got me excited as it's personal. I understand first-hand the advantages, disadvantages and all complexities that are involved in running a family business.
Some of the cons are:
Not being able to separate personal and business time: Talking about business in bed, at a dinner date, during playtime when you should be giving your kids attention. It's essential to put boundaries in place in order to live a balanced life.
Personal disagreements that filter into business: Having an argument at home and you thinking that once you get to the business things will automatically be resolved is far from the truth. You need to take the time to sort out personal issues cause in a family business, business is personal.
Leniency: When it comes to enforcing discipline you tend to be less harsh, compared to someone that you have only known for a short while and that can lead to you both taking advantage of each other.
Divorce: Some of my clients that run small family businesses have divorced and their business accounts remain frozen until the divorce is settled. So make sure legal agreements are in place should any conflict arise that will protect the business with a proper succession plan.
Some of the Pros are:
Commitment: The hours we put in to make our businesses work is insane and I don't have to ask permission from my wife to come home late as she is with me in the business.
Quicker decision making: The same disadvantage of not being able to separate business time and personal time can also be advantageous as you able to discuss critical business decisions in the comfort of your home.
Decreasing costs: It's easier to take cuts in salary especially when the business is going through financial trouble as everyone would know each other's bare minimum to make it through the month.
Loyalty: Having stuck it out during the most troubling times, when we have faced business challenges even though our staff have walked out on us, gives us the comfort that as long as we have God and each other we can make it through anything.
Legacy: Of all the benefits of running a family business, what stands out the most for me is the ability to plan for future generations. The thought that what you both have embarked on will be able to outlive the both you and get handed over for generations to come. Although stats show that only 4% of family-run businesses get handed over to 3rd generation but also the lack of succession planning is the biggest contributor.
There have been friends that have told me they can never see themselves running a business with their wives as it will drive them crazy. I mean there are so many success stories family-run businesses in South Africa, like Ackerman's, Rupert's, Oppenheimer's and Hirsch families.
My advice would be if you have an opportunity to go into a business relationship with your better half, do it, as the advantages for me personally outweigh the disadvantages.