Gm560 Entrepreneurship And Small Business Management Paper
Case Study
Keller Business School of Management
GM560: Entrepreneurship and Small Business Management
01/21/2012
Abstract: While conflict and other complications do arise in most family owned businesses, it is actually possible to run a successful family owned business. Considering that in the United States 90% of business is family run and owned. It is a viable venture to pursue at all costs for those who are not faint hearted. In this paper I will try to elaborate on some of the tips towards running a successful family business inclusive of the pitfalls that the business owners should avoid. With adequate evidence, I will look into a viable specific ownership type that the Zatswho business should use. I will eventually delve into the target market group that the Zatswho should focus own in particular.
Many family businesses are turning to strategic offsite meetings to help them quickly adjust, adapt and take advantage in this challenging economy. However, the day-to-day job of a family business owner can easily be compromised and complicated by relatives who need to be reconciled to working together (Nico, 2011). According to Nico, the …show more content…
business should always come first. The decisions made at the workplace should be objective, not personal; the boss/employee relationship must be accepted by all family members the job description must be clear and understood while the work life and home life problems should not overlap each other. Mattera, 2000 suggests that families should be encouraged to hold regular meetings so that they can work on business communication.
This is an important undertaking because as we know it, communication is paramount even in relationships that do not entail business. This aspect of communication helps a family business to operate more efficiently and effectively. According to Mattera, The successful design of a succession plan in family-owned companies is vital to avoid future conflicts that may lead a business to grinding a halt. Family owned businesses are better off when the operations are led by non-family members. Non-family members should assume positions of authority so that the owners are free to work on strategy, future plans and growth, while that person guides day-to-day operations (Nico,
2011). For the Zatswho Company, the pitfalls I would warn them to avoid bringing personal issues into the business environment. Always keep the communication channels open, the business should be devoid of the family drama. Among business-owning families, money issues, coupled with power and control issues that tend to crop up from time to time should be avoided at all costs in a business environment. For the Zatswho flashcard company, the recommendation I can offer concerning the type of ownership for them to launch there company would be to launch under C-corporation. The reasoning behind this advice is the fact that the business owners create a separate legal structure that helps shield their personal assets from judgments against the company in case of any. There are other advantages that vehemently supports the launch of this company under the C corporation Internal Revenue code there include the limited liability for directors, officers, shareholders, and employees. The perpetual existence even if the owner leaves the company, enhanced credibility among suppliers and lenders and certain tax advantages including tax-deductible business expenses among others. The potential groups of people who make up Zatswho’s target market would the many young and upcoming families, the daycare centers, pediatricians offices, and the grandparents just to name a few. For the website I would suggest more video clips of the other enumerated places where these flashcards can/ are used. Or the pictures of the same will be very useful too. For an increase in revenue, they should create room for other companies to advertise on their webpage too.
References Mattera, George S. "Advising Family Businesses it’s All about Communication." (June 2000): 100-02. Print.
USA. SBA. Www.sba.gov/. By Nico J. 31 May 2011. Web. 21 Jan. 2012. <http://community.sba.gov/community/blogs/community-blogs/small-business-matters/5-tips-managing-successful-family-business>.
Keller Business School of Management
GM560: Entrepreneurship and Small Business Management
01/21/2012
Abstract: While conflict and other complications do arise in most family owned businesses, it is actually possible to run a successful family owned business. Considering that in the United States 90% of business is family run and owned. It is a viable venture to pursue at all costs for those who are not faint hearted. In this paper I will try to elaborate on some of the tips towards running a successful family business inclusive of the pitfalls that the business owners should avoid. With adequate evidence, I will look into a viable specific ownership type that the Zatswho business should use. I will eventually delve into the target market group that the Zatswho should focus own in particular.
Many family businesses are turning to strategic offsite meetings to help them quickly adjust, adapt and take advantage in this challenging economy. However, the day-to-day job of a family business owner can easily be compromised and complicated by relatives who need to be reconciled to working together (Nico, 2011). According to Nico, the …show more content…
business should always come first. The decisions made at the workplace should be objective, not personal; the boss/employee relationship must be accepted by all family members the job description must be clear and understood while the work life and home life problems should not overlap each other. Mattera, 2000 suggests that families should be encouraged to hold regular meetings so that they can work on business communication.
This is an important undertaking because as we know it, communication is paramount even in relationships that do not entail business. This aspect of communication helps a family business to operate more efficiently and effectively. According to Mattera, The successful design of a succession plan in family-owned companies is vital to avoid future conflicts that may lead a business to grinding a halt. Family owned businesses are better off when the operations are led by non-family members. Non-family members should assume positions of authority so that the owners are free to work on strategy, future plans and growth, while that person guides day-to-day operations (Nico,
2011). For the Zatswho Company, the pitfalls I would warn them to avoid bringing personal issues into the business environment. Always keep the communication channels open, the business should be devoid of the family drama. Among business-owning families, money issues, coupled with power and control issues that tend to crop up from time to time should be avoided at all costs in a business environment. For the Zatswho flashcard company, the recommendation I can offer concerning the type of ownership for them to launch there company would be to launch under C-corporation. The reasoning behind this advice is the fact that the business owners create a separate legal structure that helps shield their personal assets from judgments against the company in case of any. There are other advantages that vehemently supports the launch of this company under the C corporation Internal Revenue code there include the limited liability for directors, officers, shareholders, and employees. The perpetual existence even if the owner leaves the company, enhanced credibility among suppliers and lenders and certain tax advantages including tax-deductible business expenses among others. The potential groups of people who make up Zatswho’s target market would the many young and upcoming families, the daycare centers, pediatricians offices, and the grandparents just to name a few. For the website I would suggest more video clips of the other enumerated places where these flashcards can/ are used. Or the pictures of the same will be very useful too. For an increase in revenue, they should create room for other companies to advertise on their webpage too.
References Mattera, George S. "Advising Family Businesses it’s All about Communication." (June 2000): 100-02. Print.
USA. SBA. Www.sba.gov/. By Nico J. 31 May 2011. Web. 21 Jan. 2012. <http://community.sba.gov/community/blogs/community-blogs/small-business-matters/5-tips-managing-successful-family-business>.