Why a Family Business fails
As I have mentioned in my last post, I will start a small family business hoping to survive the world of the self-employed. I have been reading a lot business tips sites and magazines, and I want to share them to you. There are applicable if you are about to start a one or has already one.
A family that prays together stays together. But does this work when a family works together? Most of you may agree that it does since family members tend to be more concern, sincere and has more personal touch on his assigned task. However, we cannot deny that there are also some family businesses that do not stay long. Worst is even the relationship among the family members are affected.
But why does this happen? What are factors that constituted the problem? Here are some important factors that are usually taken for granted.
Children were not being motivated
Parents motivate their children to study hard and to be a good citizen. They start molding their children as early as possible by having quality time with them. However, children will have a mind of their own and start to know what they want. Some businessmen parents assume that because their children watch them everyday, they can be interested in it too. They do not even explain the nature of the business, how it works and how the family is getting a lot of benefits.
Children were being force to join
People are born with different interests and talents. Some children are not really interested in running a business, no matter how well parents motivate them. Unfortunately, the poor children are being forced to join even though they are not really interested. By doing this, they will find it hard to learn and may not give their best shot. They may even make wrong decisions that will start the business to fall down instantly or gradually. After all, children can still help in other ways other than being directly involved.
Photo credit to guenterleitenbauer
Children are being treated as employees
Although family members should work together as professionals, they are not ordinary employees. The blood that runs in your veins is the same, and this is the major reason of their deep sincerity at work. Their suggestions and even oppositions should be heard and considered. Being a parent and the president of the company does not necessarily mean your observations about the company are always correct. Things must be observed in different angles and perspective, and the more minds working the better the result would be.
Children are not being treated equally
Sibling rivalry can lead to jealousy if not being handled properly. While it is nice to see that siblings hold different positions in a family business, this is a delicate scene. Although children are not equally talented, businessmen parents should not show any sign of favoritism. They must be able to find ways to maximize the capabilities of each of their children. They should also teach their children to help each other and unite to make the business grow. If any of them will feel discriminated, he will be hesitant to contribute more.
Blood is thicker than water, but it is harder to flow.
Related posts:
How to Avoid Money from Destroying your Marriage
How to Teach your Child the Value of Money
If you want to receive my future posts regularly for FREE, you can subscribe in a reader or by Email. If you have concerns, please do not hesitate to Contact Me anytime.
+of+Subscribers.JPG)
Dominique posted: 29 Sep at 8:44 pm
I agree that it is never easy to balance personal relationships when you have to deal with your family members on both personal/professionally in a family business. You are expect to work harder then other employees and expect to perform much better. My cousins all left their family business to work outside as they couldn’t stand their “slave driver” parents.
Mel Avila Alarilla posted: 30 Sep at 7:51 am
Working together as a family brings a lot of good results to the whole family. This set up works well with Chinese families because they are business oriented and very clannish. Children really obey their parents. Filipino families are somewhat a little different. Sometimes a member of the family wants to have a name of his own and does not want to be subjected to the discipline of the head of the family as what is happening in the house. There is also the problem of sibling rivalries when siblings compete with each other thus resulting in the ruin of the family business. There are advantages and disadvantages of family businesses. Thanks for the informed post. God bless you always.
B. Wilde posted: 01 Oct at 4:13 am
Is this ever true. There is so much more at stake in the relationships we have with those closest to us. This raises the emotions and the volatility. I have found it difficult to work with family. Even more difficult was working for a business that had most of the adult children working for the parents. Talk about a circus. You never knew who was chummy and who was at odds from one day to the next. And they always wanted you to be on their side. Better to avoid nepotism at all costs. Makes for happier employees.
patel posted: 04 Oct at 3:52 pm
I find family businesses to be great, but sometimes when doing business with non-family members, gives you a better chance of bigger success.
Blogging Questons & Answers 25 posted: 14 Nov at 9:05 pm
[...] Angel Cuala asks: I really like this portion of your blog, as readers like me are really learning a lot. I [...]
Blogging Questions & Answers 25 | Ron Davies’ Wonderful World of Web Marketing posted: 15 Nov at 2:15 pm
[...] Angel Cuala asks: I really like this portion of your blog, as readers like me are really learning a lot. I [...]
Blogging Questions & Answers 25 | Home Business Work Online posted: 15 Nov at 5:31 pm
[...] Angel Cuala asks: I really like this portion of your blog, as readers like me are really learning a lot. I [...]