What is a Family Business?
A family business is basically any business in which the majority of the ownership or control lies within a family. Involvement of members of family in a business can bring with it its own complexities because the line between the business system is sometimes separated by a thin line from the family system. Sometimes these 2 positions overlap causing all sorts of conflicts.
Families involve emotion with includes relationships that carry with it loyalties and natural love whereas a business system is unemotional and coldly designed to extract the highest profit from that venture.
Styles that are necessary in a family situation may not always suit the business situation. Membership of a family is by birth whereas membership of a business should be by investment and performance.
Families deal with family matters in a certain way that entails the head of the family making decisions either alone or in consultation with another senior member of the family. The business however, has its own systems and methods of communication as well as styles involving the resolution of conflicts and finalizing decisions.
Conflict between Business System and Family System
Conflicts arise in family business when the roles of one system intrude into the roles of the other and because each member of the family is basically involved in a dual system problems arise. The overlap of these two systems become really apparent when there are conflicts in interest arising between the family members and the business.
Most families regard the concerns as being paramount in all cases but a prudent business owner will ensure that family concerns and business concerns are properly balanced so as to achieve the maximum satisfaction for both systems and people involved. Too often the emotional bonds of family tend to short cut processes which have been designed to ensure the security of the business and to maximize its success.
For example, family members are put into positions of power where they do not have experience or knowledge simply because they are family members. If they came through the normal interview and selection process they would not get that position. This is clearly a case where family considerations breach the normal standards of how businesses should be run in order to achieve maximum profitability.
Specific Issues in the Family Business
A business is difficult enough to manage at the best of times. A family business however brings with it its own issues and problems and these need to be clear before anyone gets involved in a family business whether that person is part of the family or an outsider. A family business is subject to the same problems that beset every other business except they usually take on an extra one or two, simply because relatives are involved.
Some of the issues that most businesses have to face include the following:
All the issues above have to be assessed in a family business situation because the potential for business conflict and family stress can be very high. The way to diffuse conflict and eliminate stress involves identifying the issues causing the conflicts and stress and then discussing these issues with all the family members involved.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
Administrative and clerical tasks are the bane of every industry.... Read More
Hi, Charles...here, Your Cap and t-shirt guy From Texas. How... Read More
Running a business on the net these days can be... Read More
The life cycle of the typical small business is short... Read More
It has been discussed allowing Franchising companies to electronically disclose... Read More
Multimedia is everywhere on the Internet, whether in the form... Read More
That sizzling sound you're hearing may be a symptom of... Read More
Concrete cleaning can be a lucrative business to start. Here... Read More
The story is told of a tiger chasing some goats... Read More
I am simply amazed at the problems some of my... Read More
No matter your age or station in life, we all... Read More
To get approval for your small business loan application, you... Read More
You're a small business owner with a hot new product... Read More
Would you rather have one good client paying you five... Read More
In my 18 years of consulting I have heard it... Read More
What types of companies do you want to align yourself... Read More
The Service-Disabled Veteran-Owned Small Businesses (SDVOSB) is a program that... Read More
Pet Transportation Services are needed as the number of pets... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
Here are some important points to take note of if... Read More
THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
Many small business startups fail within the first 2 years... Read More
One overlooked individual in the process of taking a company... Read More
One of the hidden perks of raising six children is... Read More
A consultant must remember that the business belongs to the... Read More
Which questions do you need to ask to even get... Read More
Looking for ways to boost your cash flow? As a... Read More
What unspoken message are you sending your clients and customers?... Read More
The difference between rates and wages is not always clear... Read More
When it comes to cost, how much can you afford... Read More
Over regulation of small business is so intense it is... Read More
As small business owners we're in business to make money... Read More
If you're just ramping up your small business email newsletter,... Read More
Ask anyone trapped in a cubical about their entrepreneurial dream... Read More
So you think you're not justified in taking time away... Read More
Often smart entrepreneurs look for out of the way businesses,... Read More
To get approval for your small business loan application, you... Read More
As I am preparing for my attendance to the CoachVille's... Read More
New Franchisors and Entrepreneurs need to watch out as they... Read More
We all know how glorious those first warm days of... Read More
If you are the boss and you think your job... Read More
In the summer, I can't drive two blocks without seeing... Read More
Let's face it, we all tend to get stuck in... Read More
Who is responsible for maintaining the business relationship?Nurturing a business... Read More
There are many potential niches for pressure washing companies that... Read More
So there I was ? sitting in the audience of... Read More
Pardon my enthusiasm, but a large part of your small... Read More
Database Problems in MarketingI have been working on a direct... Read More
Most small businesses will not even try to advertise on... Read More
Small Business |