Family Business or Private Business - which ones last longer?

My ideas were not my father's idea Then running my father's business is going to be tough for me

Though I know the products he deals with every day I am not sure this will work out for me I opt my own business

But In India getting initial funds are really difficulty once you go against your parent's desire That I think is one of the prime reason why family business flourish here

But In India getting initial funds are really difficulty once you go against your parent's desire That I think is one of the prime reason why family business flourish here

Very true! Yet this can be taken in two ways. The family ties if are not stronger could break up both the business as well as relationships, but in business partner deals - even if they break up, it does not affect the family. Which would you consider as more feasible in our society and why?

anoopthefriendVery true! Yet this can be taken in two ways. The family ties if are not stronger could break up both the business as well as relationships, but in business partner deals - even if they break up, it does not affect the family. Which would you consider as more feasible in our society and why?

ATF I am too young and inexperienced to answer this question friend sorry

If I have not ventured into water I will not know the feel of the water at all Am I not right

ConquerorATF I am too young and inexperienced to answer this question friend sorry

If I have not wentureed ventured into water I will not know the feel of the water at all Am I not right

Here, we learn from our mistakes my friend. You learn only when you ask questions and analyse situations. We all read the newspapers and surf the internet to gain knowledge and so being young adults I guess it's time we put in our small contributions even if they may not look right - we are definitely learning from each other.

PS: Error corrected friend

And About CE I learnt a lot from CE let me be in learning mode about this topic I wanna know more in it

But right now I know nothing in it sorry

anoopthefriendMost of us might have heard about business tricks and business deals. A lot of family businesses have been going on over the years throughout India and the whole world, and recently a lot of private stakeholder businesses have sprung up in between people with no blood relation, but like mindedness and varied skills.

Here are a few questions I want you to analyse and discuss:

1. Does family business yield better profits than private businesses?

2. Which is better in the long run - your family's business or your own?

3. Is the saying 'Every man to himself' more relevant in private business? How does this saying possibly affect a family business?

4. In India, why do you think family businesses rule over those that are private?

5. Add more questions if you like.

Discuss!

I Can't answer as question wise since one question and the other overlap.


FAMILY BUSINESS
+Reliability Among One Another.
+Economic and Moral Support from close and distant relations.
+Mutual Help.
+Each Other Understand One's Problem,capability and ability to do things.

-Problem in Business affect family ties.
-Creates a feeling "I Was Being Overloaded or Slaved".
-Clash Of Interests.<Too Many Cooks Spoil the Broth>
-Once Economic Position is clearly visible to other.

PRIVATE BUSINESS
+Full Privacy and Power to Decide.
+Self Reliability.
+Our Position is only Visible to Us. So No Can Define us.
+Responsibility.Thinking Singly With Our Responsibility to do things for family will not allow us to go in a Wrong way.

-Low Economic Helps.
-No One Is Trustable.
-No Mutual Help Mostly. Though It Occurs Sometimes there is always a feeling of owner-labour relationship. Both Doesn't Want to cross the limits. Owner Doesn't Understand Labour's feeling,Labour doesn't want to help or give idea to Owner to develop the business,since he was in the feeling,"I Work and I Was Paid,Nothing more than that".
-Depression.

CONCLUSION(SELF)

I Found the line in the question "which one lasts longer" to be wrong,Since the business one which satisfies the customer both with the price and quality lasts longer in my opinion.Yes there are help in family business. But for the person who doesn't want the relations indulge in his business,its totally irritating.Which Business? Private or a family one? This Question is Answered With One's own position. Each One Can Give Marks According to the Advantages and Disadvantages.

for example;

one disadvantage of the private business is economy.if one is financially self sufficient,he can leave this easily. So Each One Should Decide on His Point of View.

Good thread. I've my own opinions on the topic. I'll express them through answers to your questions -

1. Does family business yield better profits than private businesses?

K: A family business can be a private business - as in a 'private limited company'. I think the profits are a direct outcome of how the business is run. As long as the people sitting in the drivers' seat are mature, passionate and professional - most of the businesses will run just fine.

2. Which is better in the long run - your family's business or your own?

K: This question can't be answered, I think. It's going to be a very personalised choice any day - because if you aren't interested in your family business and want to startup from scratch - you better go with what you want. However, an established business could be an awesome platform for any budding businessman. It presents you with a great kickstart to grow it to levels not imagined before. I've seen several people do that.

3. Is the saying 'Every man to himself' more relevant in private business? How does this saying possibly affect a family business?

K: Again, very personal. If one has the option of expanding family business - he/she should align his own goals with those of the business. This is what any entrepreneur has to do to run the business.

4. In India, why do you think family businesses rule over those that are private?

K: India got independence in 1947 and afterwards, several businesses were set up. In India, there's a mix of very large family businesses (like Tata, Birla, Ambani) and even the business created by first generation entrepreneurs - Murthy, Sunil Mittal etc.

Adding a few more questions:

1. Would you prefer a family extension to your private business?
eg: If you family owns a construction company and you want to start your own IT/Software company, would you find it easier to use your family's wealth over taking a loan. Does a lot of entrepreneur fails occur due to lack of family support or is it because of the inexperience of the entrepreneur?

2. If you've started from scratch and earned your way to be successful, would you still continue reinvesting all your profits on the expansion of your company or would your create a backup business to manage with any future losses?

eg: If you have started a software company and you were lucky to get successful in less than 3 years. However, keeping your future or for the greater welfare would you also start another secondary business such as real estate/gold or would you invest in fixed deposits/gold/land? Does involving a family member help you in this process more than it would if you involve a business partner?

3. In family business, does partnership have more priority over relationship?

eg: case of ambani bros

I've always been against taking up loans when the business is just starting. But that's just my way of thinking. Instead of starting big (especially in the IT) one can always start very small taking up very limited financial help from family. Profits and losses are part of any business and financial planning needs to be done carefully.

1. As I said, I'd start very small - investing the money I've saved or taking some limited help from family - which the family won't mind donating to me.

2. This decision depends on whether the backup is required for the business. Any business, on its own should cover up its own backup, ideally! Any business should create assets which it can rely on in the time of crisis.

3. In family business, my guess is that the defined roles, responsibilities and the tenure should be acceptable to everyone who's a shareholder.

Whether family business or private business the one who works with full involvement has an edge over other.The family business has an advantage that there will be many experienced people to guide us.
😀

Whatay thread! Hats off to the replies. Making this a watched thread. I never thought there was a comparison between - Family Business Vs. Non-Family Business.