Family-owned businesses account for the majority of the world’s wealth. However, as with any other type of business, there’re both advantages and disadvantages associated with running a family business. Let’s move forward to discover them and see who can best help you with a merchant loan.
Advantages and Disadvantages of Running a Family Business: Merchant Loan
According to a 2019 survey by Deloitte, which polled 791 executives of family-owned businesses from 58 countries worldwide:
- 43% had annual revenue of less than the U.S. $50 million
- 37% had between the U.S. $50-250 million
- 16% had U.S.$ 250million-1billion
- 5% had the U.S. 1 billion or more
If you need additional funding for your family-owned business, just consider turning to a reputable alternative online lender in your field. This is the fastest and cheapest way to get access to the funds you need, including a merchant loan. Make sure the rates are among the cheapest in the space.
Pros of Running a Family Business:
- Greater incentive to work harder
- Strong commitment
- Loyalty
- Stability
- Common values
- Trust and authenticity
- Flexibility and versatility
- Vision and long-term goals
- Your family’s under-aged children involved in the business can bring your some tax advantages
- Since your family members are already familiar with the business to some degree, this results in time effectiveness and higher speed of operations
- When necessary, family members can cover for each other
- More relaxed working environment
- Time and cost-effectiveness based on not being obliged to hire outside the family
- Greater chances to make decisions more easily
Cons of Running a Family Business:
- Unstructured or undefined leadership
- Family can get you more distracted
- Not being able to separate work and home effectively
- Your business could be more vulnerable because of your family issues
- Family conflicts
- Family members may break working rules easily
- If rule-breaking is left without consequences, it may hurt your business
- Lack of skills for the given position
- Critical feedback may be rake negatively
- Not expressing what you think being afraid to hurt your family member’s feelings
- Difficulty deciding who’ll be in charge of the business if the current chief is to step down
Family-owned businesses play a key role in the U.S. economy. Like any other business, they have both pros and cons that you should take into account by all means.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loan solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard-working business owners across the country.
