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Family Run Business

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Phrases

  1. When we think about a family business, we mean a small company.
  2. And we tend to believe that a family business has limited resources.
  3. But we have very good example of exceptions in Russia – Vladislav Filev and Natalya Fileva. They are the owners of S7 Airlines.
  4. But it is rather the exception than the rule.
  5. A family business has a myriad of weaknesses.
  6. First is disputes among relatives.
  7. Second you must hire an employee because he’s the wife’s brother, not because he has good skills.
  8. It is difficult at work for non-family employees, realising that the relationship is different between family members and non-family members.
  9. To pay the members of the family as much as they can.
  10. “We pay good money to keep the idiot members of the family away from the management of the company” Guinness.
  11. Such companies have problems with delegation of authority.
  12. On the other hand, complex difficult decision may be made faster in a such company.
  13. You can hire relatives until you run out of spheres of influence: Management, Finance, Accounting, Marketing, Logistics, etc.
  14. But sooner or later disagreement in your family will negatively impact your business.
  15. When everybody obeys the law.

Vocabulary

  • equity – the quality of being fair and impartial
  • exception – a person or thing that is excluded from a general statement or does not follow a rule
  • impact– the action of one object coming forcibly into contact with another
  • influence – the capacity to have an effect on the character, development, or behaviour of someone or something, or the effect itself
  • myriad – a countless or extremely great number of people or things
  • partnership – the state of being a partner or partners
  • plumbing – the work of installing and maintaining a plumbing system
  • run out – you have no more of it left
  • survival – the state or fact of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances
  • tend to – regularly or frequently behave in a particular way or have a certain characteristic

Sources of information was used for preparing this article:

  1. Financial Times

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