Family business, good or bad?
Not many people love to work in a family business especially when you are not part of the family. The reason is simple – the best positions and opportunities are normally reserved for those in the family. Outsiders? You’re just there to assist them.
Well, that is at least what most people think. Fact is, this kind of favouritism can happen anywhere, not just in a family business. If you happen to work for a boss who favours few individuals over the rest, the same thing will happen. The good opportunities will all be left to those few individuals. As for the rest, consider yourselves lucky if you are able to get a decent increment. And yes, this kind of scenario happens in a lot of companies. So what makes you think this is different from your fear of working in a family business? Not much difference as far as I can see.
And on the other hand, a family business under the management of the right people will always pick the best person for the job even if the person is not one of his relatives. Correct me if I’m wrong, but I think Genting is doing a very good job at this. Genting directors are some of the highest paid people in Malaysia and don’t tell me all of them belong to the Lim family. 
Okay, I know some of you would say “what about those small family business where the CEO is the husband and the COO is the wife?” Normally, that kind of company has a big “Join us and die” sign board at their entrance. 
Just kidding. It can be very bad but also, it depends on how mature and how professional they are. I believe there shouldn’t be any problem if the CEO and the COO know what is personal and what is work. If they can’t, then you better stay away. Don’t end up like my friend who was forced to resign because he did not know which instruction to follow – CEO (husband) or COO (wife).
Anyway, I think at the end of the day, the most important factor here is who are the top people and how do they run the company. Favouritism style? Or best-man-for-the-job style? And also, is there a long term future working for them. Are they professional enough to know what is best for the company. If majority of the above questions are ‘NO’, then time to move on.
As you rightly said, mom & pop businesses don’t have the monopoly on favoritism. Blood ties is not the only thing that underpin those links. It can be money, personal trust, even blackmail (if u don’t give me that position I’ll spill the beans on you.)
I can’t speak for small LLCs but the mid-tier ones (turnover of above $50 million p.a.) have evolved, especially if they are public listed. I see that a lot in Singapore and HK where professional credentials can weigh more than who you are – at the operations level. Many will leave the CEO alone if he delivers but at the board or chairman level, or wherever money decicions are being controlled, family still dominates.
Family business has the usual pattern of keeping the business to their family. But however, it is always disastrous, especially when the family is fighting for control and power or in big disagreement. Look at the company KianJoo as example of power and control tussle.
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Always listen to the COO (wife) , you might get some extra bonuses ..but she gotta be hot first ..
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It’s hard to have a family business where there isn’t any favoritism. There is bound to have.
Personally, don’t really like to work in a family business. Not much of a freedom and you can feel that all eyes are on you. Make a mistake, walla.. you will be the talk of the family.
Yes i don’t deny working for other people’s company will have the same problem but we can take things a little lighter compared to working in a family business.
Maybe that’s due to higher expectations when you work for your own family. Just my 2 cents! ^^
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@Damien Tan
Yeap, those bigger family businesses have evolved. They have evolved to the level that I personally feel that sometimes, they can perform better than those companies managed by selfish board of directors.
@mindfinance
That’s why not many family businesses are successful. But those which can ignore the favoritism and internal conflict can achieve more success than the rest. Because the people at the top will not be looking at money alone. They will really work for the business.
@gapnap
:O What if she’s not hot at all? :O :O u know those typical auntie who are very very fierce? coz…most COOs…are not hot chicks.
@kampunginvestor
I understand what you mean but the scenario which you are talking about is more on small medium businesses. Big businesses, i think you won’t be that visible to ‘them’ unless you are really high profile.
But for small medium businesses, you are true. Opportunities are not much for strangers like us.