In Africa, where family ties are strong and the unemployment rates are often high, the decision to do business with family can be tricky. I started exposing this issue in a previous post.
Indeed, working with family members can offer a sense of comfort and familiarity that can make the business building process less stressful.
In direct opposition, doing business with someone you do not know often comes with a level of uncertainty within our African communities.
Nonetheless, the relationships – be it family or not – that exist between people are what can make or break any business. In this blog post, I’d like to reflect on the pros and cons of doing business with family.
Pros of doing business with family in Africa
Trust
One of the most significant advantages of doing business with family is the level of trust that already exists between family members.
Indeed: working with people who you’ve known your whole life comes with a level of trust that is difficult to replicate in a business relationship with strangers. This can help to build a strong foundation for a successful business.
Such level of trust can help to:
- build a strong foundation for a successful business
- prevent conflicts and disagreements
- ensure that everyone is working towards the same goals.
Shared Values
It is common for family members to share similar values and goals, which can make it easier to work together towards a common goal.
This shared vision and beliefs can help align the family members’ interests and thus lead to a more cohesive team.
When the business core ethics are not common, the company culture may be affected – thus increasing the chances of business failure.
Flexibility
When working with family, there is often more flexibility in terms of working hours and responsibilities.
With a proper communication and organization, family members can work around each other’s schedules and divide the work based on their strengths and weaknesses.
This should result into more productivity, efficiency and increasing chances of success in the business operations.
Commitment
Family members are often more committed to the success of the business than outsiders are. This is because they have a personal stake in the success of the business.
Such commitment is often translated by loyalty and dedication: family members are more likely to put in the extra effort for the business to meet success.
Challenges in doing business with family
Conflicts
Personal conflicts can easily spill over into the business, causing tension and disruption. Similarly, it can be difficult to separate professional issues from personal ones, as family members may discuss business matters during social gatherings or family events.
To navigate these challenges, it’s important to establish clear boundaries and expectations from the beginning. This may involve setting aside specific times and places to discuss business matters, such as regular meetings or designated workspaces.
It’s also important to establish clear roles and responsibilities and to avoid overlapping areas of authority. Another strategy is to establish a code of conduct or a family business constitution.
Maintenance of professionalism
Family relationships can sometimes blur the lines between personal and professional, which can lead to a lack of professionalism in the workplace.
In every work place, there are occasional disagreements. However, when not handled properly, the latter can birth a lack of professionalism. It is therefore important to promote a culture of professionalism in the workplace.
This may involve establishing guidelines for behavior, dress code, and communication, as well as providing training and development opportunities to improve skills and knowledge.
Moreover, effective communication is also crucial in maintaining professionalism in a family business.
It’s important to address conflicts and disagreements in a timely and respectful manner, and to encourage open and honest communication between family members.
Communication issues
Although family members may have a higher level of trust, they can also have communication issues that can affect the business.
Most misunderstandings are often resulting from a miscommunication. All relations will come at some point to a misunderstanding. Including family relations. Let alone professional relations.
A clear communication of each goal and expectation is necessary between each business stakeholder. Otherwise, it is an open door for tensions and confusions.
Power struggles
Family dynamics can create complicated power dynamics that can affect the decision-making process and the overall success of the business.
Power struggles can arise when family members have different opinions about the direction of the business, or when there is a lack of clarity around roles and responsibilities.
Family members may also have different priorities, values, or goals, which can make it challenging to reach consensus on important decisions.
To avoid power struggles, it’s important to establish clear decision-making processes from the beginning.
This may involve creating a formal governance structure that outlines the roles and responsibilities of family members, as well as the process for making decisions.
This can help ensure that decisions are made based on objective criteria rather than personal relationships or agendas.
It’s also important to promote open and honest communication among family members. This can help address issues before they escalate into power struggles and ensure that everyone feels heard and valued in the decision-making process.
Entitlements
Family members may feel entitled to certain positions or benefits within the business, and this can cause conflicts and resentment.
It’s important to establish clear roles and responsibilities from the beginning and to avoid nepotism or favoritism.
Also, family members should be held to the same standards as non-family employees, and promotions and other benefits should be based solely on merit and performance.
Additionally, it is important to establish clear policies and procedures for promotions, bonuses, and other benefits.
These should be transparent and based on objective criteria, such as sales goals, customer satisfaction, and other key performance indicators.
Lack of expertise
While family members may have a strong work ethic and a shared vision for the business, they may not always have the necessary expertise to run a successful business.
Bringing in outside expertise is a solution. This can be in the form of hiring non-family members with the necessary skills and experience, or seeking advice and mentorship from industry experts and business advisors.
Another option is to encourage family members to develop their skills and knowledge through training and education programs.
This can help fill any gaps in expertise and can help family members take on new roles and responsibilities within the business.
As this post is coming to an end, might I ask: if you were given a choice, what would you do? Would you do business with family? Or would you rather not? And what would justify such choice? I’d love to read your thoughts over the comment sections.
This post was about listing the pros an cons of doing business with family. Feel free to comment and share.