Some people think that the best way to run a business is within the family. What are the advantages and disadvantages of a family run business?

It is true that family-run businesses have never stopped gaining in popularity around the world.

Although

this

model is applauded by many experts, there still

exists

Suggestion

exist

many limitations. On the one hand, there are a number of advantages of a family-run

business

.

First

, since the

business

is operated and overseen by family members,

such

as children and wife, or relatives, it is difficult for any outside parties to steal away the control of the

business

.

This

means that the family has an absolute power and control over strategic decisions, staffing, or payroll, which will certainly be of great benefit to all family members.

Second

, since family-run businesses are private corporations, they are not subject to complex financial reporting requirements.

As a result

, the

business

can save a great deal of money on hiring a team of professional accountants to prepare external reports and deal with government stakeholders.

On the other hand

, family-run businesses are not without downsides.

First

,

business

-related conflicts among family members have the potential to destroy any family relationships.

For example

, a dispute over either

business

ownership or salaries might lead to a quarrel or even an avoidable family estrangement.

Second

, non-family employees working for a family-run

business

might view

this

business

practice as unfair towards them.

For instance

, even if they perform exceptionally well and make enormous contributions to the company, chances are they will not be recognized enough compared to those who are family members. In conclusion, given the clear advantages a family-run

business

have, there are still limitations. By acknowledging these limitations, the

business

owner can find ways to dodge them.