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- When we think about a family business, we mean a small company.
- And we tend to believe that a family business has limited resources.
- But we have very good example of exceptions in Russia – Vladislav Filev and Natalya Fileva. They are the owners of S7 Airlines.
- But it is rather the exception than the rule.
- A family business has a myriad of weaknesses.
- First is disputes among relatives.
- Second you must hire an employee because he's the wife's brother, not because he has good skills.
- It is difficult at work for non-family employees, realising that the relationship is different between family members and non-family members.
- To pay the members of the family as much as they can.
- "We pay good money to keep the idiot members of the family away from the management of the company" Guinness.
- Such companies have problems with delegation of authority.
- On the other hand, complex difficult decision may be made faster in a such company.
- You can hire relatives until you run out of spheres of influence: Management, Finance, Accounting, Marketing, Logistics, etc.
- But sooner or later disagreement in your family will negatively impact your business.
- When everybody obeys the law.
- equity - the quality of being fair and impartial
- exception – a person or thing that is excluded from a general statement or does not follow a rule
- impact– the action of one object coming forcibly into contact with another
- influence – the capacity to have an effect on the character, development, or behaviour of someone or something, or the effect itself
- myriad – a countless or extremely great number of people or things
- partnership – the state of being a partner or partners
- plumbing - the work of installing and maintaining a plumbing system
- run out – you have no more of it left
- survival - the state or fact of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances
- tend to – regularly or frequently behave in a particular way or have a certain characteristic
Sources of information was used for preparing this article:
- Financial Times