Woman’s Passions

Family bonds are much stronger than other bonds connecting people among themselves. After all in marriage two  persons share practically everything between themselves. Therefore it is considered that the most reliable  business is the one based on family bonds. Is it true? And what risks we have here?

So, it is possible to speak about advantages of family business only in case when it is correctly organised, is  developing successfully and each member of a family involved in it is happy with his and others’ results, i.e.  in case of successful family business. Let’s consider advantages of family business.

Advantages of family business

The first obvious advantage is that the profit in a family from given business is maximum, accordingly family  budget enclosed in it, comes back faster. Correctly built relations in business and general interest pull  together family members even more and increase quantity of planes of their interaction.

In family business, as a rule, there are no half-words, which can become unexpectedness and cause financial  losses. Members of a family are usually in a course of each other’s personal plans (wedding, childbirth, etc.),  what allows providing and avoiding possible blanks in affairs in advance. Employees on hiring, as a rule, keep  silence about similar situations to the last and reveal the situation frequently at the most inappropriate  moment.

Following advantage of family business – possibility to attach children to it, beginning already with average  school age. In the course of children familiarising with business you teach them not theoretically, but  practically, making use of experience and knowledge received in concrete business. A bright example of parents  operates more effectively, rather lectures and theoretical knowledge in educational institutions. You can pass  stably progressing and bringing constant income business to your children, having provided their future (if only  they would continue the business started by you).

Unfortunately, not everything is so simple and ideal, as it could seem. There are situations when family  business falls. What are reasons?

Reasons of failures in family business

The first situation, characteristic for unsuccessful family business, is created when in a family there is  someone involved in business – in most cases misunderstanding starts being established gradually between members  of a family. A businessman is constantly occupied, he never has time for a family, he is constantly reserved,  silent and anxious, and as such condition turns into his way of life and accepts constant character, atmosphere  gradually becomes heated and scandals begin.

And then a businessman, deciding to correct a situation and rally a family, suggests members of a family joining  his business. Such step is erroneous as, as a rule, serious problems, both in personal relations, and in  business begin from this point. Misunderstanding does not disappear anywhere, and annoyance at each other  appears (businessman is angry his relatives are not so operative and competent, and relatives are offended  hedoes not give them proper attention).

The second reason of relatives incompatibility in family business is absence of business authority in each  other’s eyes. Numerous sneers, when someone from family members decides being engaged in business and suggests  organising family business, are typical. In this case, even if someone of relatives agrees on this offer, he  does it only to observe all course of events and be convinced of final fiasco. In similar situations you should  preliminary prepare relatives psychologically and incline to the point of view about necessity and expediency of  your business, and only then, when they are ready, sound an idea andoffer cooperation.

Inability to differentiate personal and office relations and appointment of relatives to high posts are also  among fatal errors. Absence of accurate and clear understanding that business has its rules and laws, which one  should listen to to achieve success, leads to insults, contentions and finally or failure of a family, or  business. The same can be told about relatives on good posts. Hiring a relative that does not correspond to a  high post by experience and skills, you aggravate a state of affairs and at the same time offend a relative (as  he constantly remains guilty, or considers you do not help him).

We recommend charging a family member with adequate duties, and with acquisition of necessary knowledge you can  promote him.

Very often ambitions and arrogance become a contention reason in family business, but, as a rule, it concerns  distant relatives, and also spouses, brothers and sisters (such conflicts happen rarer between parents and  children). Different people’s abilities and grasp are different, quite often it turns out that an invited  relative-beginner masters new business very quickly and becomes more successful and authoritative, than the  founder which invited him. Similar situations come to an end when a relative, who received skills, opens his own  business and withdraws a part of personnel with him, and related relations remain spoilt frequently for ever.

In end it would be desirable to advise to think of, whether it is necessary to start a family business, take  into consideration all risks and start business only at full confidence that it will not affect a family  well-being in any way.