Family owned business vs. professionally run businesses

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29 comments Page 1 of 3.

PMO Global Institute Inc said:   3 months ago
Hello All.

I wanted to initiate a discussion on the topic of family-owned businesses versus professionally run businesses. Both models have their merits and challenges, and I believe it's important to explore the dynamics and advantages of each.

Family-owned businesses often carry a rich history and a strong sense of tradition. They are driven by the passion and dedication of the family members who are deeply invested in the success of the business. This personal connection can foster a unique culture, with a strong emphasis on values, loyalty, and long-term commitment. Family businesses often prioritize nurturing close relationships with employees and customers, creating a sense of community and trust.

On the other hand, professionally run businesses bring a distinct set of advantages. They often have access to specialized expertise and a diverse skill set that can be crucial for growth and innovation. Professional managers, with their extensive knowledge and experience, can introduce effective systems and processes, enhance operational efficiency, and drive strategic decision-making. Their objective outlook and focus on maximizing profitability can help businesses thrive in competitive markets.

It is essential to strike a balance between the two approaches. Family-owned businesses can benefit from professional management practices, such as implementing transparent governance structures, professional development programs, and succession planning. This infusion of professional expertise can help sustain the business across generations and adapt to changing market dynamics.

Similarly, professionally run businesses can also benefit from incorporating elements of the family-owned model. By fostering a sense of shared purpose and values, they can create a stronger sense of belonging among employees, resulting in higher levels of engagement and dedication. Additionally, incorporating family involvement in key decision-making processes can provide valuable insights and long-term perspectives.

In the end, the success of any business, regardless of its ownership structure, boils down to effective leadership, clear communication, and a strong focus on customer satisfaction. Both family-owned and professionally run businesses can excel if they embrace the best practices from each other's models.

SUMIT KUMAR MODI said:   7 months ago
Hello Everyone,
I am in the favor of a family-owned business.

From my perspective, in the family business, people work on the long-term execution of their plans and this will led to the next generation further. In a family business, the secrets can remain secrets, there is confidentiality at the peak which is the limitation of a Professionally run business. Where in Professionally run businesses the employees work for the short-term profits for the growth and incentive benefits, and the family own business members work for the legacy and long-term profits which can be reflected as the status of the family group. we can take the example of Ambani cum Reliance group which is sooner going to be a third-generation company. We have seen the success of the TATA group of companies which is itself a legacy at its own.

Tinku Paul said:   3 years ago
According to me, everything is a good side and bad side. Family business is good because when karta he has started his business he struggled a lot and stable but next generation has come they get the silver spoon because everything is ready he doesn't need to struggle but may be they two or three brothers they are involved in the same business then trouble starts and they want separate their business whereas professionally run business he has knowledge and expertise person will be there and first time he has to struggle after that gradually he reach his destination because he is the owner he doesn't need to consult with other family member.

Supraja said:   4 years ago
Hi everyone,

My priority goes with the family-owned business. We always look through the negative side of family owned business while it has many productive benefits. Yes, I do agree that there are some limitations to family-owned businesses.

The success of any business depends on better management. Management is nothing but having a better understanding. Family creates a better understanding leading to better management. In short leads to success.

Mehak said:   5 years ago
Helo friends,

My opinion is different from all of you. According to me, the only difference between family-owned business and professionally run business is the beginning. I agreed in family owned business you don't have to work hard to get that silver spoon which you have to do to get that job but the problem arises after that once you both sit on that chair level of problems are totally diff. In family earned business you have to work hard day and night no working hours no holiday you have to work overtime because whole responsibility is on you now. But in professionally run business you have to do only that work which is assigned to you. No tention before and after that.

Thank you.

Gourav Bansal said:   6 years ago
A family business is what actually lacks professionalism as the management and the ownership are in the hands of family members, where the desires and demands of the family members clash with the company objective and goals which they wish to achieve whereas in a professionally running business the all the work is done under the supervision of professional managers, where professionalism is given utmost priority.

Khusbu said:   6 years ago
Both the family owned business and professionally run business have their own importance. In family owned business, one would have to get everything without any suffer or we can say without any hard work, but to get the business in the higher position is the main thing which has to be done by one. But in professionally run business one would have to do hard work from start. One should have a good qualification, do well from the beginning, in interviews and a lot then he would get a good job. But in job one will make his perfection on work, own personality.

Madiha said:   7 years ago
I think people who have their family owned business have no tension they knew in advance that they have to join their family business they don't have to struggle in life and they don't need to show their intelligence n skill in job interviews in order to earn a job. But those who are professional managers need to fight with the whole world they have to struggle in life they have to update their knowledge improve their skill so that they can get a good job or run and manage their newly start business. So I think professional managers are much more hardworking because he doesn't get a silver spoon to serve him instead he have to make that silver spoon with his hard work and dedication. Thank you.

Greeshma said:   8 years ago
I with you guys, I thought that professional management is better, because they give more concentration to social responsibility, that means consumers related products and they want to reach consumers needs and wants and in the organisation also they maintained faith on participative management.

It means they give opportunity to other subordinates to involved in decision making. But in family business profit is main motive and also reputation. Overcome this also there is one big problem. That is conflicts between each others.

BMGIndia said:   9 years ago
Family business helps because the next generation leaders get the benefits of foundation and trade repute. Young entrepreneurs can boost up the results of family business by applying strategic policies as driven by Six sigma, lean and D4 theories.

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