Keeping the Family Business Healthy: Four Keys to Success

Keeping the Family Business Healthy:
Four Keys to Success

by Karen Vinton

Family business plays a major role in our economy. It is estimated that over 90% of all businesses are family-owned or controlled. These businesses contribute almost 50% of our nation’s GNP. Yet what are the typical stereotypes that surround these businesses? We frequently think of “Mom and Pop” stores, the undeserving child who inherits the business, the family squabbles which end up in court, and family businesses as portrayed on TV and in movies (Bonanza, Dynasty, etc.).

Many of these stereotypes tend to be very negative and may lead us to make wrong decisions about our own family businesses. In fact, some consultants and business experts say the way to “save” a family business is to take the “family” out of the business! But is this practical advise?? NO!!! More…

Nepotism In The Family Firm: Problem Or Solution?

Nepotism In The Family Firm:
Problem Or Solution?

One of the positive factors in family held or managed firms, is the succession from one generation to the next when son/daughter “takes over” from dad and the business continues to thrive and grow.

The successful “passing-of-the-torch,” so to speak, leads to stability, longevity, and successful growth. This is a positive factor not only for the family business, but also for the community at large as well. Nepotism (favoritism shown to family members) in family firms is a normal occurrence–otherwise we wouldn’t have a family firm. However, in some instances, nepotism can lead to difficulties not found in non-family firms. More…