Family owned business vs. professionally run businesses

Hello friends. I agree with kapil that scenario in family business is different from professionally owned business. There is no guarantee how long professional be in the business. Although in family business members be more sensitive about goodwill and try to take more advantage of upcoming opporctunities for there business maximization.

Professionalism:

1. Lag in commitment with workers than family business.
2. Chances for less co-ordination.
3. Chances for shut-downing without the approval of all people in the organisation.
4. Owner concentrates on profit rather than human.
5. Workers may feel uneasiness.

Family business:

1. Kartha of the family will lead all the members of the family.
2. Forcing of work will not be there.
3. As family members they have responsibility.
4. Easy to control and sometimes it may reverse.
5. Fully committed workers (members).

Getting on a logical conclusion, issue is actually with lack of professionalism in family run business... professional managers should be appointed in family run businesses.. so as to increase the goodwill of the business as it perhaps gives a right path leading to success, such managers provide proper working techniques as he is professioanlly trained... and then aside all these matters,he is master in making the strategies for an effective business..!!!

Hey friends according to me family business is really risky nothing can be predicted and even more than that results in fight between family which further leads to negative thinking about each other and on the other hand professionally run business is some what better then the family business because it's better gaining profit individually without any fights and staying happy and let other be happy without any bad thoughts about each other's mind.

Dear Friends I'm agree with your all opinion. and I affirmatively favour family owned business because of the fact that you are self employed not working under any other business-man. They will have to make strategy to develop their business and have to earn profit as well. More over if you have a quality of a entrepreneur than you can invest a capital amount and start a professional business. So if I say that every Entrepreneur in INDIA has not started their business initially after completing their study.Initially they need a family owned business to judge their quality and strategy so as to invest a huge amount as a capital in any professional business.

In current scenario, Family owned business does not has any importance coz its main objective is to earn Profit.They wont treat customers well.

Wherareas in Professionally runned b'ness they give importance to customers.. they produce goods as per customer needs..Here Customer Satisfaction is given more Imp..

So, In my Opinion Professionally runned b'ness is better than Family Owned B'ness

Hello friends I support to professionally run a business why I am saying this is family business in the sense there more conflict occur from our family members itself so they unable to concentrate the business they concentrate to solve the inner problems they examples birla groups, tata groups reliance groups etc.

Family run business:

More centralization in decision making
Product centered business
Ownership is there
Tightly runned

PROFESSIONALY RUNNED

Decentralization of decision making
Turnover centred business not product specific
Loosely held
Lacks ownership

I belive companies who are successful are family owned companies
professionally runned

1.Ownership is still there
2.Decentralisation of factor based decision making
3.Sector based business model
4.Wisely held

In my view i support professionally run business because one can have work satisfaction with his own business rather than looking over family related business.If we get into family owned business one should work under the guidelines of our family members and maintain the reputation of the business.But if you opt for professional run business you can implement your own ideas as the result may effect your business itself.Mean while you can have suggestions from elders and implementation of their ideas is your concern.So i opt for professionally run business.

I would rate professionaly run business over family run businesses. we can argue about the professionals that they will always look for thier growth but let me remind you guys falimly run business are at a very high risk of family's internal politics. Overtime the issues like who will control what and who will be next successor leads to a situation where whole organisation can become a battle field. A classic case from India can of Relaince. Look at the way Mukesh and Anil Ambani fought over control...had this been a prfessionaly run business i m sure the situations would not have developed.we should not professionals as greedy people who just want to earn huge salaries but should look the them highly skilled and exprienced people who run the busineses keeping shareholders interest at top priority.