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Aug 15, 2014

Challenges of the Family-Owned Business, Part III


Category:Speaking Topics Management Leadership Family Business Entrepreneur Business Management Business General Success In Business 
Posted by: actionjanna

In Part III of this series, we continue our look at some of the major reasons why many family businesses have failed and may fail yet if such issues are not effectively addressed.

I Love You, You're Hired

Many family business owners simply can't help but hire those family members they love best and provide them with the best roles.  In their vision, the ideal reality is a child that takes the helm after them.  Sometimes the owner's children or other close relatives aren't the best candidates.  Sometimes an owner is persuaded to hire a family member for a certain role that would suit the talent and skills of another far better.  It is often difficult for family business leaders to effectively assess the skills of another family member because they are blinded by love and their own desires regarding the business.

 Conflict and Emotion

In non-family business a work conflict remains a work conflict.  In a family business, a conflict that erupts at work goes home and vice versa.  There is a decided emotional vulnerability that is connected with the family business platform.  There is no way to get away from the boss or people at work when you may live with them or are in close proximity to them.  Many people find this constant connection to family members stifling.  Others cannot recognize the need for boundaries--for giving other family members their personal space even though that separate time could be therapeutic.  Work conflicts, in short, are personal conflicts and nearly always emotional, always threatening the foundation of the business.