Monday, September 24, 2007
Who's Business Is It Anyway?
When you put up your own money and operate your own business, you
prize your independence. It's MY business, you can tell yourself,
in good times and in bad.
In a family company, however, it's OUR business.
When family members work together, emotions may interfere with
business decisions. Conflicts may arise as relatives see the
business from different perspectives. Those who are silent
partners, stockholders and directors are likely to judge capital
expenditures, growth and other critical matters primarily by
dollar signs. Those engaged in daily operations are more likely
to be concerned about production and sales figures and personnel
matters. Obviously, there is potential for conflict.
In some family companies, daily operations are hampered by
conflict; in others, the challenge is a high turnover rate among
nonfamily employees. Growth also may be a dilemma if some
relatives are reluctant to plow profits back into the business.
Conflict in the business also can be aggravated by family members
who have little talent for money or business -- the offspring of
company founders who lack business acumen or in-laws who must be
employed without regard to their ability or the company's needs.
The manager of a family-owned business faces the same challenges
as the owner-manager of any small company. However, the job of
family manager may be complicated by relatives who must be
reconciled to working together in a business.
(courtesy of SBA.gov)
Small Business Content and Small Business Media
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