Family owned business vs professionally run businesses
which one is better family owned vs professionally run businesses
Family owned business vs professionally run businesses
I would rate professionally run business over family run businesses. we can argue about the professionals that they will always look for thier growth but let me remind you guys family run business are at a very high risk of family’s internal politics. Overtime the issues like who will control what and who will be next successor leads to a situation where whole organisation can become a battle field. A classic case from India can of Reliance. Look at the way Mukesh and Anil Ambani fought over control…had this been a professionally run business i m sure the situations would not have developed.we should not professionals as greedy people who just want to earn huge salaries but should look the them highly skilled and experienced people who run the businesses keeping shareholders interest at top priority.Even I’ll agree that in the family owned business his main intention is to improve the business n success towards the business. Where his /her involvement and improvement is very less in this family owned business.
In this present generation professional business is very much competitive and every one will be looking forward towards their self achievement and they will come up with their innovative ideas. Finally the main goal to gain more profit individually.
Professional run business’ are more likely to take risks hence they have higher gains (or losses) but a family run business is less likely to take a risks they generally have more stable profits. Moreover in family run business’ there is more centralization of authority which makes it extremely rigid and cumbersome, whereas in professional run ones the authority is more decentralized hence decisions are taken faster.Getting on a logical conclusion, issue is actually with lack of professionalism in family run business… professional managers should be appointed in family run businesses.. so as to increase the goodwill of the business as it perhaps gives a right path leading to success, such managers provide proper working techniques as he is professionally trained… and then aside all these matters,he is master in making the strategies for an effective business..!!!
Although it will always remain a topic of discussion that which one is better family owned businesses vs professionally run businesses but end decision has to be of investor
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8 Responses to Family owned business vs professionally run businesses
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both have their own benifits,if u are owner of family bussines then you are the bos so,you take important decision at your own risk which lead to growth of your talent.but the rate of risk is more.
If you work in professional business then you learn to work in team env.,but you have to work under your boss so both have their benifits.
It is a diverse topic and both the form of business are good at their own position. Views on this topic varies from people to people.
family business
Advantages-
1. You are the boss.
2. More flexibility.
3. Sharing of burden.
4. Faster growth….etc
Disadvantages-
1. High risk.
Professionally run business
Advantages-
1. Work with new people.
2. Diversity
3. Deployment of your learning in more efficient way.
4. Enhancement of communication skills.
Disadvantages-
1. Work in given boundaries.
2. Deployment of ideas are hard.
in my opinion, professional business is more beneficial, because in professional field we learn many things and gain various experiences in our cooperative field.
I would rate professionaly run business over family run businesses. we can argue about the professionals that they will always look for thier growth but let me remind you guys falimly run business are at a very high risk of family’s internal politics. Overtime the issues like who will control what and who will be next successor leads to a situation where whole organisation can become a battle field. A classic case from India can of Relaince. Look at the way Mukesh and Anil Ambani fought over control…had this been a prfessionaly run business i m sure the situations would not have developed.we should not professionals as greedy people who just want to earn huge salaries but should look the them highly skilled and exprienced people who run the busineses keeping shareholders interest at top priority.Even I’ll agree that in the family owned business his main intention is to improve the business n success towards the business. Where his /her involvement and improvement is very less in this family owned business.
I would always prefer a professionally becoz it is less affecting from internal politics and running by peoples belongs from different areas, minds, creativity,ideas and skills which will surely helpful to provide enormous number of jobs and give benefit to it’s country also
According to me family run business are less beneficial to the professional one as it only concerned on skills which are passed from one generation to other……But actually this is not the need of the present generation VERSTALITY is the main demand nowwdayzzz which can only be achieved if we are readyyy to take inputs from others…….This reallly lacks according to me in in familyy businesses……!!!!!!!!!
I prefer family run business like lot of creative craft work done by our expert craftsmen.because of them we can still find amazing hand works in the market…Old Lucknow is full of it and it attracts foreigners also like the famous “Chicken-work” on clothes..Every one is not an an expert in business but they can prove their skills in their family work..
I think family owned business would be more preferrable to me. As in this we know about the partners very well. And we do have the sense of trust between them which helps them to grow their business more and fast. Trust is the key factor to the success in case of business. And i think it is mostly in case of family so thats become more flourished. Siting the example of Ambanis, Tata, Birlas would surely support my point.