By: Natasha Archary
A family business run the wrong way can ruin relationships but some of the most successful enterprises around the world are family-owned. Many big-name brands and companies started off as small ventures which took off and as much as it can be done, there are challenges that family-run businesses can run into.
On Kaya Drive this Thursday, Sizwe Dhlomo and the team got into a discussion around family businesses and whether it’s a good or bad idea.
Would the Kaya Drive team consider going into business with family?
One of the ways families secure and maintain their wealth is to keep their businesses within the family, case in point the Kardashians have multiple business deals under their brand and all the sisters collaborate within their initiatives.
Kim’s intimate range SKIMS is famously modelled by her sisters, in the same vein that Kylie launched different lines in her makeup range for each of her sisters and her mother.
Collectively the Kardashian and Jenner clan were in 2020 worth $2 billion according to Forbes.
They aren’t the only family who have not only secured the bag but ensured that generational wealth flows through their bloodline for decades to come.
Italian company Prada was started by Patrizio Bertelli and his wife who have built one of the world’s most iconic fashion labels. The husband and wife team and Bertelli’s siblings own 95% of the Milan-based global fashion house which netted an estimated €2.42 billion in 2020.
Kaya Drive listeners shared their thoughts on family businesses:
Tips for a successful family venture:
- Get EVERYTHING in writing
- Hire a third party to manage conflicts amicably
- Family business or not, having contracts in place is necessary or issues may arise with regards to salary, profits etc.
- Managing the family part of the family business is the key. People who are great at this work diligently on keeping the family unified. They communicate a lot. The adage, ‘family first’ is the focus.
- Iron out the exit rules. Can you fire a family member? Or is it a case of exit the family business, exit the family? Often a family member who is fired or asked to leave the family business is so ashamed their whole identity has been taken away from them.