Naperville Business Lawyer Discusses Unique Aspects of Family Business

family business, Naperville business law attorneyAs a business law attorney and a business owner, I understand that owning a business can be one of the most fulfilling and exciting professional experiences a person has. Sometimes, an individual invests their time and money into building a business in order to sell the business for profit. In other cases, a person might have a business idea and then grow that idea into a thriving family business that can be passed down to their children and grandchildren.

Of course, starting a successful family business from scratch is not an easy task. It is imperative that anyone wishing to start their own family business understands the unique complications and benefits that a family-run company can entail.

Comparing Family-Run Businesses to Other Corporate Entities

There are many important differences between a family-owned business and other types of business endeavors. The obvious differences include the ability for larger companies to bring on more partners, gather capital from investors, and be publicly traded. However, these facts do not really speak to what makes a family business so unique.

Perhaps the most dramatic difference between a family-run business and other corporate companies is the personal investment —both literal and figurative—that a family business requires. Not only do many family businesses require family members to provide the capital needed to start the company but they also require a great deal of time and personal energy. Owning a family business brings to mind the old fable about the tortoise and the hare. Most family business owners must “run the race” at a slow and steady pace, just like the tortoise in the story. The focus may need to be on developing sustainable business practices that will be successful long-term instead of producing a quick profit.

Benefits of Owning a Family Business

Admittedly, owning a family business can require a tremendous amount of work, creativity, and patience. However, there are great benefits to owning a family business. Employees at a family-owned business often become like family members – even if they are not actually related. Instead of being just one of hundreds, if not thousands, of employees at a large corporation, employees at family businesses are often known personally by the business owner. They are more likely to feel a sense of loyalty and personal investment in the business’s success. A family-owned business can also provide career opportunities for your family for generations to come.

Contact a DuPage County Small Business Lawyer

If you are ready to learn more about the initial steps in forming a family business, contact a skilled Naperville business law attorney from The Gierach Law Firm. Call 630-756-1160 to schedule a confidential consultation with our experienced professionals today.

 

Sources:

Harvard Business Review

Forbes