Keeping it in the family, The Pros and Cons of Running a Family Owned Business.
Albeit in some instances it is not best for an individual to inherit a family business, running family-owned business has far more advantages than disadvantages. The purpose of this essay is to demonstrate that running a family business has its benefits and that they outweigh the detriments of it.
Some of the top tier multinational companies are family run businesses, from Wal-Mart the largest retail store, to the media and communications company called Comcast. People have long predicted the breakdown of family businesses and yet a wide range of family-owned companies have prevailed. Honestly, not every family business is successful, but neither are the public …show more content…
My brother and me always heard about the business matters, and to be honest he always seemed interested while I found it really boring. My brother is currently studying financial administration and plans to run the business but I have different interest and would like to develop my own business but if help was to be needed I would step in without thinking it twice.
As cold as it may sound, the business must be separate from family in order to be successful. This is a common problem in a family business because there is a possibility of having business and family interests mixed, for example a problem at home can affect how the family works. (Spaeder K …show more content…
A family member can become too comfortable and perform poorly or remain in the comfort zone.
Another upper-hand of running a family business is that the company stays within the family, meaning that you do not have to put your trust in other people to run the business. And because the family name is at stake the members work extremely hard to maintain a reputation and build client relations as a matter of pride. (Shelley 2011)
One of the most harmful problems of running a family business is that when a disagreement occurs business matters can turn personal. If the disagreement goes very bad the family can break apart and turn members against each other. (Shelley 2011)
Because of this, the family businesses that do best are the ones that understand the difference between their interests and the businesses’ interests. It is also coherent to establish a process in order to manage the consequences of the differences to prevent family breakdowns. (Business in the Blood
Albeit in some instances it is not best for an individual to inherit a family business, running family-owned business has far more advantages than disadvantages. The purpose of this essay is to demonstrate that running a family business has its benefits and that they outweigh the detriments of it.
Some of the top tier multinational companies are family run businesses, from Wal-Mart the largest retail store, to the media and communications company called Comcast. People have long predicted the breakdown of family businesses and yet a wide range of family-owned companies have prevailed. Honestly, not every family business is successful, but neither are the public …show more content…
My brother and me always heard about the business matters, and to be honest he always seemed interested while I found it really boring. My brother is currently studying financial administration and plans to run the business but I have different interest and would like to develop my own business but if help was to be needed I would step in without thinking it twice.
As cold as it may sound, the business must be separate from family in order to be successful. This is a common problem in a family business because there is a possibility of having business and family interests mixed, for example a problem at home can affect how the family works. (Spaeder K …show more content…
A family member can become too comfortable and perform poorly or remain in the comfort zone.
Another upper-hand of running a family business is that the company stays within the family, meaning that you do not have to put your trust in other people to run the business. And because the family name is at stake the members work extremely hard to maintain a reputation and build client relations as a matter of pride. (Shelley 2011)
One of the most harmful problems of running a family business is that when a disagreement occurs business matters can turn personal. If the disagreement goes very bad the family can break apart and turn members against each other. (Shelley 2011)
Because of this, the family businesses that do best are the ones that understand the difference between their interests and the businesses’ interests. It is also coherent to establish a process in order to manage the consequences of the differences to prevent family breakdowns. (Business in the Blood