One of my passion projects among the new businesses currently in preparation is “Lost Garden,” a company dedicated to producing and distributing herbal-based dietary supplements.
It is a passion project for two reasons: firstly, over the past 10 years, nutrition has become increasingly important to me year after year; secondly, I am starting this company with my wife, Kata. Her ideas, knowledge, experience, and studies form the foundation of this endeavor.
We’ve had many conversations about whether starting a business together is a good idea—mixing family with professional and financial matters, as well as blending roles. Since we decided to go for it, I’ve compiled a list of the advantages that starting a family business can offer.
Reliability and Commitment:
Family members often demonstrate greater commitment to the business compared to non-family employees. This stems from the fact that the success of the business directly impacts the family’s well-being. Family members typically have a higher stake in the success, which makes them more invested. They may also be more motivated and willing to forgo short-term benefits in favor of achieving higher long-term profits. This allows them to dedicate more time and energy to the business, which is particularly beneficial during the uncertainties of the initial stages, fostering opportunities for growth.
Faster Decision-Making:
Decision-making processes in family businesses are often simpler and faster, as there are fewer hierarchical levels and communication among family members tends to be more direct. The familial bond (ideally) means spending more time together, which helps us understand each other’s thought processes and backgrounds, reducing misunderstandings and enabling us to “speak the same language.” This allows the business to adapt more quickly to market changes and seize opportunities more effectively.
Strong Corporate Culture:
In a family business, shared values and goals provide a strong foundation for developing corporate culture. This is one of the most important elements of a team—a shared value system that keeps everyone together and motivated. Such a culture can promote long-term loyalty, improve understanding among team members, and reduce turnover.
More Flexible Working Conditions:
Family businesses often offer greater flexibility regarding working hours and conditions, allowing family members to better balance work with personal life. This is especially advantageous when raising children or managing other family obligations. It’s easier to adapt the balance between private life and work to suit one’s current life situation.
Shared Goals and Successes:
For me, this is the most important aspect of our relationship. It’s great to see that my partner has clear and well-thought-out goals in business. It feels good to support her, to be her partner in this as well, and to stand beside her as a pillar of support. The challenges, shared successes, and collaborative thinking we experience in addressing business questions are all moments that strengthen our bond. These shared experiences reinforce our sense of belonging.
In my view, these factors illustrate how a well-managed family business can offer long-term benefits for both the family (and the relationship) and the business itself.
However, it’s important to note that the success of a family business depends on addressing the unique challenges they pose, such as the intertwining of professional and personal relationships. Difficulties, failures, and misunderstandings related to both private life and entrepreneurial efforts often impact both areas. It’s worth building both the family and the business on a mature and strong relationship—especially when both are based on the same solid foundation.
The article was originally published on the Vendler.hu blog.
