Main Problems of Family Business

[Suba]

We certainly know big family businesses such as Wal-Mart Stores, Ford, Hyundai Motor, Toyota, BMW Group, Samsung etc. and of course all the big family businesses have been managed professionally. But we also find that many small and medium scale family businesses are often managed unprofessionally and will encounter many problems or constraints. In some cases, I often encounter an informal culture, such as a lack of documentation, financial data, weak policies, less specific goals and strategies. I also met many employees, most of whom were also family members, without any professionalism. So what do you think about the main problems of family businesses?

 

[neku]

In some countries , government agencies are falsely claiming that a business is a family business when only one family member is doing the business. It is very difficult for small online business owners to get orders at present, other family members are salaried employees getting very good salaries in large companies, yet fake rumors are spread that it is a family business

 

[Suba]

In some countries , government agencies are falsely claiming that a business is a family business when only one family member is doing the business. It is very difficult for small online business owners to get orders at present, other family members are salaried employees getting very good salaries in large companies, yet fake rumors are spread that it is a family business

In fact, a family business is a business that has been operated from generation to generation from father to son and to grandchildren and so on, so if your father opens a business startup, it is not considered a family business before the business is inherited or delegated to you, that is also a big problem with often high employee salaries. will adjust the company's finances.

 

[Kirubel]

The biggest problem of running business with our family member is that we have similar attitude and communication on the work and also in the house, this two places are different and we need to have different communication style, and when it is on work and business we need to take it seriously and professionally.

 

[Suba]

The biggest problem of running business with our family member is that we have similar attitude and communication on the work and also in the house, this two places are different and we need to have different communication style, and when it is on work and business we need to take it seriously and professionally.

I agree with you, having the same attitude, communication and living environment will make them have the same view about business, so they don't have an external view about the performance and results of business efforts.

 

[Starmix]

One big problem of a family business is conflict of interest. If family is involved in a business clashes of opinions will be observed. Each one of them like to lead the business. They better appoint someone skilled and trustworthy from the family.

 

[Suba]

One big problem of a family business is conflict of interest. If family is involved in a business clashes of opinions will be observed. Each one of them like to lead the business. They better appoint someone skilled and trustworthy from the family.

That's right, there are conflicts of interest, competition and emotions, all families feel more entitled to be leaders, so that the atmosphere in the work environment becomes unpleasant, so it would be better to hire skilled people to manage or serve on the company's board of directors, and the family is only a closed shareholder. .

 

[Kirubel]

I agree with you, having the same attitude, communication and living environment will make them have the same view about business, so they don't have an external view about the performance and results of business efforts.

Being close family and working together without being professional is hard, you can even lose your business and money, since you can't talk to them like other workers and since you can't command them it will be very difficulty.

 

[Starmix]

That's right, there are conflicts of interest, competition and emotions, all families feel more entitled to be leaders, so that the atmosphere in the work environment becomes unpleasant, so it would be better to hire skilled people to manage or serve on the company's board of directors, and the family is only a closed shareholder. .

One reason why having that conflict is money. All of them want to have the profit go to their pockets. Others harm a busenss if they sense only one's benefiting.

 

[Suba]

One reason why having that conflict is money. All of them want to have the profit go to their pockets. Others harm a busenss if they sense only one's benefiting.

It's true, running a family business is not as easy as when we run a business with other people, even though the basic point is money and position due to human greed, but we should be able to run a business professionally, one of which is by forming a type of business.

 

[magnus2022]

The major problem most family business use to encounter is inability to have maximum cooperation and jealousy. One person want to overrule others and others will not like to be lead like sheeps. If a family business don't have a head which order flows from and others accept willingly, the business is bound to suffer setbacks.

 

[eLdavis]

One major problem one might face is not taking things seriously. They might not put in all their efforts, since they know the boss is their family.

 

[Starmix]

We have to note that there are many possible problems with a family business. It could be about favoritism, punctuality, seriousness in serving the customers, differences of attitudes, and dealings of the customers and workers. It could also be extravagance from a family member.

 

[Fidelia]

One thing about family businesses is that complacency always sets in easily because there might be a lack of that professional touch to the way the business is run because it involves people that have family and blood bonds.

 

[freelancermaria]

One of the most difficult aspects of running a family business is assigning specific tasks to each family member. A lack of understanding might hurt their family business.

 

[King Belieal]

The existence of strong family bonds in family businesses doesn't allow authority to trickle down. Unless leadership of the business is outside the family, it is very difficult for orders from leadership to be obeyed and implemented.

 

[Nomad]

The main problem is someone without any knowledge or skill or even interest will be at the helm of the business

 

[Augusta]

There's always a high level of unprofessionalism as a lot of people working for the business would want to run it as their personal thing

 

[Kera]

Family businesses don't always do things logically because everyone has to be carried along without anyone getting hurt.

 

[Min George]

Making decisions for a family business is very complex and lethargic. You need to carry everyone along in family business before a decision can be made.