Why Involving Family in Business Can Be Risky in Kenya

Business is any activity that is carried out to make a profit. Many people in Kenya engage themselves in various business activities for various reasons. Some start businesses in order to make a profit, others start to improve their living standards, others for pleasure, while others start businesses so that they become known as prominent members of society. Despite all these reasons, the main reason why people begin a business activity is to make a profit, and there is no one who can be happy when making losses in their business.

What to know before starting a business

Before beginning any business activity, there are factors to consider and things to know to ensure the smooth running of the business. Personally, I was once a successful businesswoman in Kisumu town, near Mega City, but my business failed due to my ignorance, and I sincerely regret it to this day. The main cause of my business failure was the involvement of my family members in my business, and secondly, failing to consult business experts on things to avoid when undertaking a business activity. From my experience, the following are the things I may advise one to consider before starting their business: (i) to totally avoid involving family members in their business, and (ii) to consult a business guru on the necessary things to do.

Why family members should never be involved in a business

I had a large retail shop in Kisumu Mega City, where customer flow was top-notch, so making a profit wasn’t a big deal. Due to those reasons, I expected nothing but a big reap, though my expectations did not go as planned.

My manager was my elder sister, and I really trusted her so much with the job. Then, at the cashier’s desk were my three cousins, and my younger brother worked in my business as a receptionist. Most of the time, I wasn’t around to have a close look at my business since I was a civil servant in Nairobi, and all the tasks belonged to my elder sister, who was the business manager by then. I started noticing some small losses in the business and realized that my workers, who were my family members, were mishandling it. With time, there was massive depreciation, and the losses and debts became huge until my business was declared bankrupt and closed immediately. I regret employing my family members in my business, and I advise anyone willing to start one not to repeat the same mistake I did. The following are the reasons not to involve family members in a business:

Lack of business boundaries

I realized that, despite paying my servants on time, they could still end up taking some goods from the stock to serve themselves every day. This reduced the rate of income and led to the failure of the business. Business has its own laws that govern it and must be followed for it to run smoothly and for bigger profits to be made. Failure to follow the business rules will cause it to go back to scratch, however big it was. Business assets should remain for the business and not for the family.

Lack of professionalism

One should employ business employees according to their level of competence in business and not because they are family members. I realized that my employees, who were my family members, lacked business competence. Sometimes they could come late to work without my consent, and this led to the loss of customers and delays in opening the business. Due to lack of professionalism, my employees also lacked etiquette in welcoming customers and addressing the negative issues that affected the customers.

Challenges in taking legal action against a family member

Despite all the negative things family members may do to your business, such as using the business stock without your consent, you may still feel reluctant to report the matter to the police or legal authorities. This may be due to fear of breaking family bonds or the financial challenges in your family.

Conclusion

While family members can be trusted, mixing family relationships with business responsibilities can sometimes lead to serious challenges. It is important to set clear boundaries, hire based on skills, and treat the business professionally to ensure long-term success.