Jul 06, 2022
In General Discussions
Specific questions family businesses need Job Function Email List to address are: 1 - Succession - restriction of the choice of senior managers or directors in the business to only family members can be a huge restriction on the use of the potential pool Job Function Email List of talent within the business. Equally, businesses often struggle to achieve an effective hand over to a younger generation when the older one is still within it, and businesses can remain in a state of limbo, in some cases for many years as no one Job Function Email List is really sure who is actually Job Function Email List in charge. External capital - there is Job Function Email List often a reluctance to allow 'outsiders' to participate in the company's equity. 3 - External skills - it can be difficult to attract high quality Job Function Email List external management into a family business, as potential candidates will be conscious that the center of power can lie within the family structures, with all key Job Function Email List decisions taken around the Sunday dinner table for example, rather than formal business structures, and there may be limits to promotion where certain roles are reserved for family members. Inflexibility - some family Job Function Email List businesses carry on with, or are reluctant to change, parts of the business on the basis of emotional attachments, such as grandfather started the business making widgets so we cannot stop now, rather than commercial logic. 5 - Fairness - if members Job Function Email List of the family are employed in the business their treatment in comparison with non-family employees, for example on timekeeping can be quite different from that of other staff, Job Function Email List and this can have a real impact on staff morale. 6 - Diversion of resources - in a family business which is regarded as 'owned by the family' (or an individual entrepreneur), there can be a risk that company funds are used to meet more.