Family issues and problems in business

[Kelvin7656]

However, the problems of family businesses go considerably deeper than these issues. The following are the problems.

1. Family problems. Physical, emotional and financial problems among family members can greatly impact the day-to-day operation of the business.
2. Informal culture and structure. For many businesses, having a laid-back culture is a positive. However, the informal structure and culture found in many family businesses can equate to a lack of documentation, policies, and defined strategy and goals.
3. Pressure to hire family members. It can be difficult to resist the pressure that comes along with requests from family members who want to join the business. This becomes especially complicated if they lack the basic skills and experience needed for the position.
4. Lack of training. The informal culture found in many family businesses can result in a lax approach to training new employees, whether they are family members or not.
5. High turnover of non-family employees.Non-family employees may feel that greater opportunities exist within the business for those who are a part of the family and may grow tired of the culture.
6. Sources for growth. A huge challenge for family businesses can be determining where and how to get the capital and resources needed to grow the business.
7. Lack of an external view. While family members may not always have the same opinions, they often have similar upbringing and life experiences which may lead to a uniform view of the business. Businesses need to have external views of their company and their competition in order to thrive.
8. Misunderstanding the value of the business and how it is to be divided. Owners of family businesses may have varying opinions on the value of their business, or even worse, they may have no knowledge about the value of the business and what things contribute to or detract from that value. Further complicating this matter is determining how to split the profits of the business or owners’ stakes.
9. Who will take over the business? It is important for family businesses to plan ahead for business succession. Many family-owned businesses do not have a plan in place and this can be a source of heated debate and intense family politics when the time arises to select new leadership.
10. No exit plan. Family businesses often lack a defined strategy for what will happen if an owner wants to retire, sell the business, or transfer responsibility. This goes hand in hand with succession plan issues. All businesses need a plan for the future.

 

[Jonaville1]

It is better to go into a business with a trusted friend than going into a business with family, because family business is very difficult to operate. There are some things which you can not change when you are in a family business, your father, mother, brother, uncles, aunty, remain the same even in business environment, you can not influence their decision, sometimes is very difficult to make decisions without conflict or interest clashes.

You are very correct. Going into business with family is not advisable. Problems might develop due to over familiarity and no one would want to take responsibility should any loss be incurred.

 

[Kamon c4]

Business and personal relations or feeling should be kept separate and not meddle up. This is one of the business ethics that’s ought to learned before venturing into any business. Truly, family tends tonwant special treatments and it’s moral to give that but it shouldn’t affect your business

 

[Linet]

Most times I have witnessed people take goods or receive services but won't pay, all in the name of 'the owner is my brother/sister' so I don't need to pay. This happen between husbands and wives too. But is this really appropriate? This is someone's means of livelihood, so I feel that unless the person willingly gives it, it is cruel and unfair to forcefully take things without paying, whether you're family or not. Remember, no family in business
What is your opinion on this?

It is very bad to expect you live off someone's hard work,it is not fair and luv of respect for the owner. I believe in working for your own money and spending it for your needs not only waiting for the other person so you can take goods or services in the name of how you are related to the person. So shameful and it is a really bad habit that needs to be stopped. With the kind of cost of living today people should consider others not just themselves.

 

[btaliat]

Business should be separated from families and friends. In business, no special or preferential treatment should be given to anybody. The moment this is not taken care of, the moment the business will start recoding losses.

 

[Dylinks]

This scenario is very rampant in organisations. As an expert, you need to discover whosoever that is challenged and investigate if the person is willing to share the issue with Hiring Manager. After this process, you can allow the person to go for holiday so that the issue will not affect the business. If the issue of family continues to lingers, it might ruin down the business in no time.

 

[Tariq Shehzad]

Yeah, there may b some issues or problems of family matters regarding the business poin if view.
You should give top priority to your family matters youself and for business matters assign your best and trusted employee to solve.

 

[Abibatabosede]

This problem is facilitated by the owner of the business.
We should always define the relationship between being in our family environment and business.
If you have made the policy of not taking an exception in your business even if it is your business, you won't have such problem.

 

[Donkiz]

Family and friends usually contribute to the collapse of some micro businesses by collecting goods without paying, which very bad. Although most times it comes down to the type of person the owner of the business is, if you are able to draw the line between your business and family/friends by ensuring that everyone pays for whatever they take, that way they will not tamper with your business.

 

[Kaindio Agnes Wanja]

Most times I have witnessed people take goods or receive services but won't pay, all in the name of 'the owner is my brother/sister' so I don't need to pay. This happen between husbands and wives too. But is this really appropriate? This is someone's means of livelihood, so I feel that unless the person willingly gives it, it is cruel and unfair to forcefully take things without paying, whether you're family or not. Remember, no family in business
What is your opinion on this?

This so bad of it,one should be accountable and it doesn't matter if one is your brother or a family member.
Remember this is a business that one has to spend time resources and money to create money.
So it is not ethical to take products from someone's business and fail to pay in the name of one being a family member

 

[MastetG]

Finding ways to manage dual-role relationships is one of the biggest challenges faced by family businesses, according to Arne Boudewyn, head of Family Governance and Education Services at Abbot Downing, where he manages a team of advisers for family-owned businesses. Imagine enjoying a family dinner with your father one day, and then having to report to him about sales projections for the family business the next. It can be difficult not to let family dynamics or childhood grudges seep into the workplace.
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Family businesses have roughly a 1 in 3 chance of continuing to the next generation. According to the Conway Center for Family Business, 30 percent of family businesses transition to the second generation, 12 percent to the third generation, and only 3 percent to the fourth generation. Succession planning is critical for the survival of a family-owned business in the face of such stark numbers.

 

[Ridorz]

If you want to run business successfully, you should not consider a family in business. Make sure you do not use your business play with any body either family member or friend because if anything bad happen to your business no one of them may be with to solve the problem. So, business is not what one can take as joke.

 

[Josemendez]

Most times I have witnessed people take goods or receive services but won't pay, all in the name of 'the owner is my brother/sister' so I don't need to pay. This happen between husbands and wives too. But is this really appropriate? This is someone's means of livelihood, so I feel that unless the person willingly gives it, it is cruel and unfair to forcefully take things without paying, whether you're family or not. Remember, no family in business
What is your opinion on this?

Well , when it comes to business , family relationship should not always enter into the business .
Members of the family should bear in mind that if they continue to buy things on credit , the business will never grow high thus there is need for them to support the business by paying for what they purchase at some time

 

[Jonaville1]

Well , when it comes to business , family relationship should not always enter into the business .
Members of the family should bear in mind that if they continue to buy things on credit , the business will never grow high thus there is need for them to support the business by paying for what they purchase at some time

You are absolutely right. It is so annoying to see them displaying an entitlement mentality, as if they have every right to pick things just because your family is the store owner.
It is simply not right.

 

[Mujahid12]

I agree with you, I've seen it countless times. But this is not always the case, my brother has an appliance repair business, and any family member who needs repair or to buy something must pay. In I agree and I support him, the family must be very separate from the business, since that is their work environment and the work of all family members must be respected.

Always keep private business from family and should be set and they should not be included in it And business issues should never be discussed with the family members and no one should be made a partner in the business.
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I agree with you, I've seen it countless times. But this is not always the case, my brother has an appliance repair business, and any family member who needs repair or to buy something must pay. In I agree and I support him, the family must be very separate from the business, since that is their work environment and the work of all family members must be respected.

Always keep private business from family and should be set and they should not be included in it And business issues should never be discussed with the family members and no one should be made a partner in the business.

 

[MizzLala]

I'm sorry but that's bang out of order, not cool at all. But the owners who allow that lack the discipline to run a successful business. My husband and I don't give any free service to friends and family - if anything, we sometimes give a discount. Luckily, they know not to try it on with us. You have to be very firm with everyone, friend, family or not.

 

[Machismo]

Truly, there's nothing like families in business unless you want to remain at a point in your business. It's quite unfair as it hinders the progress of the business. You can only subsidize the goods for them.

 

[Erik4150]

I have witnessed this scenario multiple times. Family members often take each other for granted even in business.
That is why it is very important that a businessman must set clear cut boundaries and rules to his family as regards to his business.

 

[Kennysplash]

Most times I have witnessed people take goods or receive services but won't pay, all in the name of 'the owner is my brother/sister' so I don't need to pay. This happen between husbands and wives too. But is this really appropriate? This is someone's means of livelihood, so I feel that unless the person willingly gives it, it is cruel and unfair to forcefully take things without paying, whether you're family or not. Remember, no family in business
What is your opinion on this?

Business grows when family and friends pay for the services rendered to them. If I want to give gifts to them I would, but business is an entirely different story. My means of livelihood cannot be viewed or treated anyhow.

 

[Patrik]

i used to face this issue long time ago, there comes time when you have to be honest and tell them directly that you are paying for that goods and not getting it for free, so they should pay, unless you want to gift them that