Write some points based on what you know about the Family Business, the question is
What do you think they would emphasize in an Owner’s Plan and why?
The family business is a business whose majority of the ownership or control lies within the family. It includes two or more family members.
Family business contributes a lot to economic growth. The success of the family business depends on different organisation factors and set of policies. While some business may proliferate without managerial talent available inside the family, there are different types of family business depending upon the ownership and leadership of the owner.
The family business owner should
- Know how to manage themselves and relationship with others
- Have the ability to resolve conflicts through mutual support and trust
- Know how to handle work and family with equal importance and respect
- Be wise enough to handle things right and not get into unresolved family conflict.
- Follow open and transparent communication and discussion.
- Be flexible enough to use advisory appropriately.
- having the decision-making ability to take the business forward
- Be clear about the motives and chase them.
- Work in the right direction under good leadership
- Able to manage and mark transition by considering family rituals
- Take care of family and organisation boundaries
Some of the typical business issues are mentioned below
- Who will all participate in the business?
- How to run a non-family business?
- How the shares and taxes must be divided?
- How to retain the non-family executives in the business?
- How will the leadership and ownership transfer be done?
- How should the business be strengthened?
Most of the owners of family business are the head of the company. Also, these owners are head of the family. The business responsibilities and leadership are mostly given to the most responsible person in the family. Some general characteristics which must be considered by the family to handover the business owners are mentioned below:-
- Things should be done on their leadership
- The responsibilities should be assumed and acted upon wisely
- The hard work should be done without waiting for others to do
- The decisions should be quickly made in severe scenarios
- The health should be given utmost priority