Source : Topnews.in

A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business’ overall well-being. In some countries, many of the largest publicly listed firms are family-owned. A firm is said to be family-owned if a person is the controlling shareholder; that is, a person (rather than a state, corporation, management trust, or mutual fund) can garner enough shares to assure at least 20% of the voting rights and the highest percentage of voting rights in comparison to other shareholders.

Family businesses may have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses.

Family participation as managers and/or owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise. However, family participation as managers and/or owners of a business can present unique problems because the dynamics of the family system and the dynamics of the business systems are often not in balance.  Read more ……

Too often, the wrong person with the right last name gets the corner office.

What are the chances that, out of thousands of candidates for the CEO spot, the son or daughter of the company founder is the most competent of the bunch? Slim to none.

Say you are a member of the Ford family, and your financial security lay in family trusts stuffed with Ford Motor stock. Who would you rather bet on, William Clay Ford Jr. or Alan Mulally, the former Boeing exec now at Ford’s wheel? In this case, Mulally had the presence of mind to secure $24 billion in funding prior to the recent economic collapse and thus avoided becoming a ward of the federal government, like GM and Chrysler.

The same can be said of the Walton clan at Wal-Mart. When founder Sam Walton died, much ink was spilled over fears that the culture, and thus performance, of the giant retailer would deteriorate. In fact, transition to professional management has yielded relentless revenue growth and profitability.

To be clear, I have met many family-member executives who were excellent leaders. But to be fair, the odds are heavily stacked against them. Read more ……

More News at KRISARU News

1. Hosted telephone systems provide robust features that can boost productivity without the need for capital. Many services can also lower your voice and data spending as well.

2. If you are looking to update your current e-mail, you can most likely do it faster, better, and cheaper with hosted solutions such as Hosted Microsoft Exchange without the need for additional IT staff, training, or capital for software and servers.

3. Customer Relationship Management software can be virtualized, too. There are many options—both general and industry specific—that enable you to “rent” your back office, rather than purchasing complex software and hardware to run it.

4. Throw away your backup tapes and the problems they create. A cost-effective solution is to have your IT staff back up your data remotely.

5. Already an option for larger companies, smaller businesses are now virtualizing their data centers to increase network performance and reduce costs.

Benefits from the above services are real. In addition to those already mentioned, you can also cut your power, cooling, and real estate bills, get greener, and increase application security, scalability, and stability. Read more ……