Business Information Blog

Archive for the ‘Family Business’ Category

Family businesses suffer from some internal communication problems generated by its very nature, must not go unnoticed. For Everyone knows the important role family businesses play in the economy of a country, whatever their field of action, for the social virtues and human characteristics of these businesses, personalized service and attention to detail. However, the defects often become more divisive and destructive to these businesses by the direct relationship between the sentimental and professional components. It is therefore a strong critical awareness necessary to analyze the circumstances and a constructive nature to help us to act directly and quickly in the resolution and implementation of business communication strategies to improve organizational communication.

How to combat homeostasis or resistance to change
There is nothing better to combat resistance to change to accept the error or the position previously adopted and assume the firm intention to maintain an open attitude to the proposals of the employees (whether relatives or strangers). Before discarding any contribution, you must listen carefully to the speaker, in conjunction with, analyze the pros and cons (involved in decision making), not forgetting the importance of taking a position on this new idea, favoring healthy communication between partners.

Similarly, it is essential to analyze the business environment, observing the activities of the competition, subscribing to a professional journal or, becoming a member of the professional association that represents your line of business to be in touch with new trends and needs of the environment.

Read the rest of this entry »

But balancing competing interests often become difficult in three situations. The first situation is when the founder wants to change the nature of their involvement in the business. Usually the founder begins this transition by involving others to manage the business. Involving someone else to manage the company requires the founder to be more conscious and formal in balancing personal interests with the interests of the business because they can no longer do this alignment automatically—someone else is involved.
The second situation is when more than one person owns the business and no single person has the power and support of the other owners to determine collective interests. For example, if a founder intends to transfer ownership in the family business to their four children, two of whom work in the business, how do they balance these unequal differences? The four siblings need a system to do this themselves when the founder is no longer involved.
The third situation is when there are multiple owners and some or all of the owners are not in management. Given the situation above, there is a higher chance that the interests of the two sons not employed in the family business may be different than the interests of the two sons who are employed in the business. Their potential for differences does not mean that the interests cannot be aligned, it just means that there is a greater need for the four owners to have a system in place that differences can be identified and balanced.

When the family business is basically owned and operated by one person, that person usually does the necessary balancing automatically. For example, the founder may decide the business needs to build a new plant and take less money out of the business for a period so the business can accumulate cash needed to expand. In making this decision, the founder is balancing his personal interests (taking cash out) with the needs of the business (expansion).
Most first generation owner/managers make the majority of the decisions. When the second generation (sibling partnership) is in control, the decision making becomes more consultative. When the larger third generation (cousin consortium)is in control, the decision making becomes more consensual, the family members often take a vote. In this manner, the decision making throughout generations becomes more rational.

In a family business, one or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses.
Family participation as managers and/or owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise. However, family participation as managers and/or owners of a business can present unique problems because the dynamics of the family system and the dynamics of the business systems are often not in balance.

Problems

The interests of a family member may not be aligned with the interest of the business. For example, if a family member wants to be president but is not as competent as a non-family member, the personal interest of the family member and the well being of the business may be in conflict.
Or, the interests of the entire family may not be balanced with the interests of their business. For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business are not aligned.
Finally, the interest of one family member may not be aligned with another family member. For example, a family member who is an owner may want to sell the business to maximize their return, but a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the business.

We must begin to love hanging out with people who have the ability to bounce. Mingling with people who are confident will be different than hanging out with people who fail. For hanging out with people who are confident, God willing, the spirit will rub off on us.

Make the unrest as a friend. Many of the incidents or moments in life that can make us experience anxiety or nervous. As a result, we are experiencing a crisis of confidence. That’s when we must begin to remind myself that the anxiety and restlessness is my friend. Increase energy, intellect, raise awareness, and develop the senses. Rather than wasting energy on futile anxiety, better face the challenge firmly and effectively.

After calculation we mature, then the confidence will grow with the strengthening of worship and prayer, for prayer and worship can invite God’s help. The more solid our worship, we pray, the more powerful our prayers and our faith with God’s help, then it can increase confidence.

Risk aversion is important, because rather than give in to fear it would be better to learn to take reasonable risks. Try to accept the challenge, despite a frightening or daunting. Find a support as possible. By doing this, we will have many invaluable opportunities. But do not forget, when trying something we should be ready with the appropriate result or not in accordance with the desire.

When the outcome was not in accordance with the wishes, it could be that the best according to God Almighty. If we’ve tried, it just has a charitable intent. People who fail are those who never dare to try. Did not climb stairs fiftieth ladder must begin with the first? It could be, not everyone around us to give encouragement, support and positive attitude to us. Most of the people around us may think negative. This is not rare even fade our confidence by questioning the ability, experience, and our aspirations.

Thus, there may be good if we take the distance with a little wise as possible when there are parties who try to wear off our self-confidence. Sixth, follow the suggestions positive. Confidence is the nature of the “contagious”. That is, if we are surrounded by people who have a positive outlook, enthusiastic, optimistic, etc., then we have a tendency to mimic the properties of these.

On the other hand, success was clearly not an easy case. When we try to achieve what we want, of course many challenges to be faced. There are times when someone so brave, but not least also that even gave up discouraged because they feel unable to deal with the challenges ahead.

At times like this, confidence is very important ability. Many experts say that self-confidence are important factors that cause a great difference between success and failure. Hence, not a few who gave his views on the techniques of raising confidence. Here are some tips to build confidence.

First, the courage to accept responsibility. Gerald Kushel, Ed.D., director of The Institute of Effective Thinking, once conducted a study of some managers. From these studies, Kushel concluded that he found the most important properties possessed by almost all managers who have high-performance.

And this trait is a sense of responsibility that encourages them to appear “perfect” without regard to any obstacles blocking. Conversely, managers who perform poorly and failed to reach its maximum capacity tends to bestow guilt on anyone.

Second, develop positive values. The road to self-confidence will be faster when we develop the positive values in themselves. According to psychologist Robert Anthony, PhD., One way to develop positive values is to eliminate the deadly phrases and replace them with creative expressions. He recommends making the transition simple but effective language of the negative statement into a positive statement. For example, replace the words, “I can not,” becomes, “I can!”

To manage the family finances and spending, the wife often was asked to perform that task. Although not an easy task, you do not need to have experience as an accountant or financial manager to do so. Actually there are some practical ways you can do as a family financial manager that you do not “keteteran” and complained out of money in the middle of the month. Remember, money is the common interest. Know with certainty the amount of income, savings, current monthly expenses are also family. Spend about 15 minutes to sit down with her husband and create a budget and evaluate your spending a month alone in this.

“Even if you do not have experience in managing finance, but two heads are always better in terms of money management,” says Janet Bodnar, author of Money Smart Women. For those of you who have the income of working women, it must be clever-clever sort out the obligations which must be borne by her husband and paid by you. Divide equally, or depending on the agreement you and your husband. For example, the husband is obliged to pay monthly bills and daily shopping. Meanwhile, the wife to pay health insurance, education and emergency fund savings.  Then, for the wife who rely on their husbands as the sole family income, the possibility should be more careful in spending plans. For example, buy the necessary goods only, saving expenses for treatment to a salon just three months. Joint accounts is the most easy and effective way to pay family expenses, such as mortgages, pay the electric bill, or the cost of child buy milk. If approved, you and your husband can have a separate account for purposes of personal nature, such as the salon, social gathering, or lunch with friends.

Debt included in one of the serious financial problems if not addressed immediately. Enter it in the budget expense items routine expenditures, such as a credit card bill payments. The sum total may not exceed 30% of the money went. If total debt is too large, stop other expenses that are not important and self control not to buy goods on credit. As the family financial manager, you also need to make the steps to set up an emergency fund, health or education fund budget. Spend your money every month to the postal savings, health insurance, too little education funding. Calculate the total savings and insurance each month maximum of 20%. If your child has not yet entered school age, prepare to have savings, insurance, education, or choose a long-term investment.

It has been much debate in the literature about which was the subject of transfer. Two main interpretations are:
Company Activities and inseparable: Design oldest labor law and also derived from the positions of commercial law, believes the company, a complex of goods, perfectly inseparable with the activities that can be firm, and therefore not transferable separately
Company Activities and split: more modern and more accepted by the labor law doctrines, believes may be sold and also the ‘inert company, from the consideration that the company can also be made even by professional skills (know-how “) of the employees, however the activity is related to the individual entrepreneur who acquires title to the original. Among other things this approach, the group of reinsurers increases significantly because there is already a requirement of being entrepreneurs.
The legislation has contributed to the evolution of the concept of transfer of business: especially if the various directives seem to identify the company as a complex of assets held for business activities, the case law gives a precise address in Case Süzen.

Company, corporate economy, is an organization of men and equipment aimed at the satisfaction of human needs through the production, distribution or consumption of economic goods.
This concept, its economy corporate should not be confused with the right of the Italian commercial law, as defined in art. 2555 Civil Code. Not all companies in economically can be defined as such in the light of that legal rule, lacking for some in-chief to the holder the status of entrepreneur.