Monday, January 17, 2011

When a Family Business Closes Down

When you start a business, you take greater risks than being employed. Not only that your income depends on how your sales goes, you also have other employees and operational costs to attend to irregardless of your sales. Thus, when recession hits home, you can only let go some of your employees until your business has nothing to bleed that you are forced to close down.

A family business may be easy to create and operate but when resources and management fail, the business may go down the drain as fast as it previously climbs. So, when the business fails, it follows suit that the family experiences a major setback, a cut limb to endure for longer time.

It is quite natural in the Philippines where close family knit prevails that family business is not an exclusive phenomenon. A good number of family businesses actually overwhelm the country. And, the business is normally passed down generations to generations that when it is forced to close down due to bad economy, sentimental mood along with family's resources are drained.

Whether a business is family managed or not, it is still subject to management, resources and economy. Thus, we can't only blame management when things go bad. We can only hope that inclusive factors to keeping a business remain thriving.



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