Why Entrepreneurs Should Build Family-Owned Businesses

familybizOne of the dreams that I have had since launching my business is creating a family-owned that includes my kids. Although countless stories of family business nightmares exist, my experience is the opposite.  I have had the pleasure of working with families that have passed on companies from one generation to the next.  Below are a few reasons why employing your children in business enhances business success.

Hiring your children is good for the bottom line. When you employ your children to work in the business you get to write off their pay. It is a great strategy for paying less taxes because they are taxed at a lower rate. It is also an excellent way to get a deduction for the money that you give for allowances,  tuition, books and clothes. Instead of gifting an allowance, give them a position in your company. It teaches them the value of working for money while developing work skills, as well.

Bringing your kids on board is a smart non-financial move, too. For example, as the parent-owner of the company, hiring your children saves time in screening and and hiring qualified personnel. Think about it. You already know what skills and interests your child has which simplifies matching to specific roles. Not only that, but you have the opportunity to groom them early on by instilling leadership and business skills that gives them a head start. I began showing my son how to help around the office when he reached the age of 9. He started by answering phones, sending faxes, and scanning paperwork to files. As he got older and developed more skills, his role in the business expanded. Today he is an integral part of my marketing team and brings valuable insights to management.

Now, I am not sure if my children will follow my entrepreneurial path. What matters most is that they discover their skills and where they fit in the workplace. As we explore possibilities together, my goal is to keep providing opportunities that help them reach their potential and find fulfilling careers. In the meantime, their interests are outside of business but I am happy to say that their childhood experience in our family business will add value in any career.

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One thought on “Why Entrepreneurs Should Build Family-Owned Businesses

  1. Benita, I appreciated reading your article about bringing your kids on board with your business. I couldn’t agree more. I’ve paid all three of my kids at various points in their lives to do work for my business. It’s a win-win! The kids get to see the behind the scenes work involved and gain experience while I get the help and the tax benefits. Being an entrepreneur is hard enough and making my business a family affair certainly gave them ideas for their future. Thanks for sharing.

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