You and your brother have been making craft beer for years, so now you've both decided to go all in on running a real brewery. You can't wait to grow a successful business, and maybe someday pass it on to your kids.
But before you get ahead of yourself, know that starting a family business is not an easy venture. For starters, personal relationships can get in the way of making tough business decisions (e.g. cutting back on your cousin's hours and pay, even though you know he's saving for his wedding), and research shows that there's a huge risk the business won't survive for long.
To get a better understanding of family businesses — and what it takes for them to succeed — we spoke with two experts at Wells Fargo who have counseled several entrepreneurs in this position: Richard Watson, senior director of planning, and Jeremy Miller, a wealth planning strategist. They have insight into why so many family businesses fail, when to make a plan, and why you should ask for help.
Here are four things to keep in mind before starting a family business:
