Published on : 03 June 20202 min reading time
The creation of a family company is not a project born yesterday. Setting up a family company is an attractive option. Working with family and friends allows you to share a common reputation. What are the advantages of owning a family company? What are its limits? What are the formalities involved in setting up a family company?
WHAT ARE THE ADVANTAGES OF A FAMILY COMPANY?
Creating a family-run limited liability company is a good entrepreneurial project. This collective project allows you to aim for a common goal, while focusing on the same ambition and commitment. The family members share the same company name and trust is established, which is a climate conducive to the development of the company. The major advantage of family entrepreneurship is that it considerably reduces the risk of conflict. The creation of a family company simplifies management. Tasks are prioritised and delegated according to the potential and skills of each individual. Undertaking a collective project with family members helps to establish a better relationship between the partners. This anticipates and thus facilitates the adoption of measures in the event of a crisis.
FAMILY COMPANY: WHAT ARE THE LIMITS?
Despite the fact that family members are your partners, a lack of interest can quickly set in. Your family members will not always have the same opinions as you. For family companies, the risk of bankruptcy is often considerable. It is not uncommon for companies to use the revenue they receive to finance family expenses. The remuneration of the partners or the distribution of profit or earnings can be a potential source of conflict. Family entrepreneurship also exposes the company to the risk of mismanagement. The person nominated and appointed by the members may not be in the right place.
HOW DO YOU PROTECT YOUR IDEA OF SETTING UP A COMPANY?