People have different perceptions on how to run a business smoothly. Some persons believe that the most effective method to continue a business is running it within the family members. The major advantage of this action is transition of knowledge and demerit is reduction in investments or in revenues. This essay will firstly discuss the positive impact and then secondly, outline the disadvantage.
To begin with, one of the merits of family business is transferring knowledge to the future generation. When ancestors pass the valuable information on how to progress on the business in a competitive market and explain the strategies to follow, youngsters in the family will acquire the best methodologies to compete, which enhance them to handle the business later. As a result, they can perform better and create profits as they are aware of the solutions to tackle the problems, that had occurred in the past. For example, many businesses which are handled by the family members, are able to produce a constant growth through the possessed knowledge and efforts.
On the other hand, investments to buy items will be a constraint, if the family is not able to support the business financially. This means that, If the financial status of a family is not constant, then they will not be able to buy commodities which are required by consumers. Besides, if the business could not bring fortune to the family, the wealth of the family will be in trouble. Consequently, loss of the business can bring debt and family people will struggle to meet the two ends. There are many exemplifications where families are ruined due to the lackof revenue from the business.
In conclusion, while there are a number of ways to run a business, majority of people prefer to run it within a family. This phenomenon has its own positive and negative impacts on the living style of people.
People
have
different
perceptions on how to run a
business
smoothly
.
Some
persons believe that the most effective method to continue a
business
is running it within the
family
members. The major advantage of this action is transition of knowledge and demerit is reduction in investments or in revenues. This essay will
firstly
discuss the
positive
impact and then
secondly
, outline the disadvantage.
To
begin
with, one of the merits of
family
business
is transferring knowledge to the future generation. When ancestors pass the valuable information on how to progress on the
business
in a competitive market and
explain
the strategies to follow, youngsters in the
family
will acquire the best methodologies to compete, which enhance them to handle the
business
later.
As a result
, they can perform better and create profits as they are aware of the solutions to tackle the problems, that had occurred in the past.
For example
,
many
businesses
which
are handled
by the
family
members, are able to produce a constant growth through the possessed knowledge and efforts.
On the other hand
, investments to
buy
items will be a constraint, if the
family
is not able to support the
business
financially
. This means that, If the financial status of a
family
is not constant, then they will not be able to
buy
commodities which
are required
by consumers.
Besides
, if the
business
could not bring fortune to the
family
, the wealth of the
family
will be in trouble.
Consequently
, loss of the
business
can bring debt and
family
people
will struggle to
meet
the two ends. There are
many
exemplifications where
families
are ruined
due to the
lackof
revenue from the business.
In conclusion
, while there are a number of ways to run a
business
, majority of
people
prefer to run it within a
family
. This phenomenon has its
own
positive
and
negative
impacts on the living style of
people
.