Small-business advice: Family firms have pros and cons

Dear Karen: How do I decide whether I should go into business with my mother and sister?

Answer: More than 70% of U.S. businesses are family owned, but they present special challenges, said Kelley Gay, assistant vice president at MassMutual Insurance. “Their proprietors will often say that success means being one part entrepreneur, one part family psychologist,” she said.

The firm’s survey of more than 500 family business owners showed that the most successful ones had established clear definitions of roles and responsibilities and set up formal decision-making and disagreement-resolution processes.

“There are many advantages to running a family business, including control and work-life balance. But those advantages come at a price, such as more stress, fewer vacations and potential disagreements,” Gay said. You can download the full report at https://www.massmutual.com; search for “familypreneurship.”

• Incentive zones can benefit employers

Dear Karen: With the recent expansion of the San Fernando Valley “enterprise Zone,” can employers double-dip into tax credits and incentive pools?

Answer: Yes, and the savings can be substantial, said Roberto Barragan, president of the Valley Economic Development Center. “Combining state tax credits and federal incentives can total tens of thousands,” he said.

Companies that locate themselves and hire in enterprise zones bring jobs and business to underserved, low-income neighborhoods, so they get special tax credits and incentives. Information and maps are available from the Los Angeles Community Development Department at https://www.ci.la.ca.us; search for “business incentive zones.”

Small-business questions? E-mail Karen at [email protected]