A family owned business is one such business where one or multiple members of one or more than one family has got some ownership interest and are equally committed to the benefit of the business. But there are certain myths which are associated with these family businesses, and they don’t hold true always.
By getting in touch with a professional at Generational Equity , you can effectively find out some myths and how professional assistance helped overcome such issues.
· Myth 1: The first and the most volatile concept regarding the family owned business is it has to be privately held. But this not a fact. Some of the world’s largest businesses are have been owned by the family, but that doesn’t mean that it has to be any private concern. In some of the cases where the businesses are large and are publicly owned, they can still be considered as the private businesses. This is a condition where the one who holds the largest share of the company, is the one who controls it.
· Myth 2: Following the first myth comes the second. It is duly regarded that the owners of the family owned businesses has to be family members. This might not be the case always. It is generally seen that most of the business owners get themselves involved in the business operations and look after the efficient running of the business. They keep any eye on the senior officers of the company and help building up the management group. So the owner might not be the family member always.
· Myth 3: This myth has stirred everyone off their roots. Most of the people say family owned businesses are fading to the past and are on the verge of being obsolete. This is complete myth and has been backed up by the empirical evidence. Most of the family owned businesses are running for decades and has been the backbone of the country’s economy and this is not just a casual statement- statistical records have proved it. It’s not that they’ve had a smooth experience till date and have had no challenges, but they’ve continued to be an integral part of the economy.
The most important and major problem that these family owned businesses face is the family entanglements, which seems to be very obvious. The biggest challenge that most of the family businesses face is the proper planning of succession. This is not a myth and there are many such concerns where one such generation lacks the aptitude of business. It has popped up in the various editions of the Generational Equity Reviews and such a situation where the heir is not ready to take up the throne seems to be very difficult.
For a lot of business owners, the business in itself seems to be another child and various concerns regarding the business makes it difficult for them to take any decision. Keeping a proper line of difference between the work and home is their biggest challenge and a proper balance can only ensure their growth in this competitive market.