Just like any other business, family businesses in Canada have a set of problems. Many of these issues exist in small business environment as well as companies. In fact, they can be more pronounced in family businesses. To fully mature, businesses owned by a family go through a number of stages. Typically, most of these challenges will be seen when the businesses enter the second, third and other generations. After some time, family businesses can through a number of changes that can either affect them negatively or positively.
Despite the many advantages that small businesses have over large firms, they still go through these challenges. Some of these include taxation, currency environment, succession planning, internal power struggles among many others. Here are some of the challenges that family run businesses might face in Calgary and how to overcome them.
Conflicts at the work place
Family conflicts are not necessarily due to friction but because it’s much easier to criticize someone especially if he is your brother or relative. However, despite these issues, family run businesses enjoy much more stability as compared to other companies. This is because they are usually reluctant to let go of something that they are relying on for support. In fact, ownership structure gives these kinds of businesses long term orientations as compared to a company. To ensure that these are minimized, it’s important that frequent meetings be held to iron out the differences.
Reluctant to sell
Family owners would rather run business instead of selling. They believe that selling the business might not bring as much returns as they would want. In fact, many family owned businesses are contented that way. This means for a business to be in a position to sell, it must have tidy balance and almost 3 years of planning to ensure that the finances are stable. Although this might be a bit tricky in Calgary, if you want to purchase a business similar to the ones owned by a family, you can visit business for sale Calgary and get the business that you need.
Family owned businesses find it hard to grow
Every year, these businesses have listed funding as one major huddle that often affects their financial growth. Although it’s not upon the government to ensure that businesses grow, it’s their responsibility to ensure that businesses that have a bright future are supported until they become strong. Unfortunately, many businesses especially the ones owned by the families overlook these and end up not growing as fast as they are supposed to.
Family businesses do not like to expand
According to statistics, many family businesses in Calgary Canada often shy away from expansion. This means majority of them often rely on the local market to expand. Many of these businesses cited a number of reasons that often deter them from expanding. When it comes to knowledge on international trade, most of these businesses lack these making it very hard for them to move forward. Some of the risks that they have cited includes, insurance, bonding, management services, and guarantees. Thankfully there are number of ways through which these businesses can expand in Calgary.
Those are some of the key challenges that often affect family owned businesses.