Facts of Family business

24th July 2022, Sunday

Family business! Don't you feel blessed if you get such a business? In this case the answer can be positive and negative. It may take into consideration the status of your family business.

Say L'Oreal, Adidas, Lakme, or you you are Elon Musk's child after birth. In this case, you will feel more than blessed. At that time you will be more interested in maintaining the family business than studying and becoming a NASA scientist.

On the other hand, if your father is a confectioner, you will want to earn more money by doing something good than by keeping the family business.

That is, the retention of the family business depends entirely on how much the family business has grown and how much profit is coming from it.

The most common problem in family businesses is the inability to survive. Only 20% of family businesses disappear after one generation. But if the business condition is good then only 12 percent business can survive after the second generation. After that the percentage of those who can survive is only three.

Why Family Businesses Can't Survive:

Not knowing business strategy: A person cannot maintain the company he founded and raise his children at the same time. Although he has a mother to look after the baby. It is not possible that the children of the owner of a multinational company will not study in school, college but university. Any person would want their son to protect their family business after getting a higher education. But the sad thing is, if a boy is not well informed about business studies and various techniques in business then he cannot survive in business for long. Therefore, if one thinks of sustaining the family business, the child of that family must acquire enough knowledge and skills about the business from an early age. And because most of the family's children are not very aware of their family business, the family business collapses very quickly.

Finding no one to trust: Trust is a factor in any business that without each other, it is impossible for the business to survive. Family businesses are never run by just one person but run by the entire family. In that case, if there is someone in the family who is untrustworthy and a threat to the family business, it is very difficult for a single man to sustain the family business. Sharing a real example from my own experience -

Next to our house was a brothers shopkeeper, where two brothers ran a shop together. According to locals, there was a lot of faith and trust between the two brothers. But that hope did not last long as one of the two brothers started a relationship with a girl. Because of her relations, she sometimes stole money and various cosmetics from shops. But as the saying goes "thief will steal for ten days and it will take one day to catch him". Then one day the thief was caught and they got into a fight and split their family business in two. After that the business could not survive for long.

There are also many other factors that go into running a family business.

Let's say your company has a important positions, where a skilled intelligent and intelligent person is required. A specialist or pro about that business. If unwise people come to such a place then surely your family business will not be able to advance much.

So think about the position now you will put a business specialist or someone from your family who is ignorant about business? Answering such a question is so wrong that most families fail to get their business going very far. Because you can use various techniques to make a business successful which can never be done by anyone without business skills.

A businessman has a lot of ideas that are used as advertisements and attract the general public to his business. When no one in the family is equipped with such skills, nothing but decline is possible for the family business.

All famous companies, most of them started as family businesses like Adidas, L'Oreal, Tesla and many others have used strategies to keep the company above profit and maintain the family business image.