Saturday, February 19, 2011

The Pros and Cons of Family Business

Kreativ Boutique

a family boutique business at Gaisano, Gensan City

There are a number of family business like MLhuillier Group of Companies that prevail in the Philippines where strong family ties as cultural value exists. And, it not at all extraordinary that family business continue to mushroom across the country.

Running a family business is easy and convenient because owner / managers can openly discuss how to run the business and if there are differences, these can be resolved immediately. Most of all, decision making is faster when you share management with family members. Further, you can gather resources without having to worry about collaterals or loan interests.

However, running a family business can have its downsides too. For one, business issues can become personal issues that business - related conflicts may cause rift among relatives. Thus, it is important that before the business really starts, a clear management structure and policies should be defined to avoid or reduce decision and management conflicts.

But, above all else, a family business can further strengthen family ties and make business more fun and exciting.



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