This article are provided for information purposes only, and are not intended as legal advice.


Should your child work for another company or just the family business?

November 1st, 2008

Many parents believe that they know how to run a company. If a child followed the parents instructions, will they be able to adapt to new situations – or will they just continue to follow what was done in the previous years. I saw a business which was set up by a husband and wife. The husband passed away within a year of running the business. The wife continued to run the business for the next 25 years doing everything the same that her husband had done. The only problem was the world had changed and you had to adapt to the new situations. The wife had no other business experience and did not seek independent help therefore could not deal with changes in the environment. Eventually, the business deteriorated so badly that she sold it for a fraction of what it was worth when her husband had died.

 

If a child works for the parent, they will have the same experiences. If the child worked for another firm, they would have a different perspective on business which may be very relevant to the running o of the family business. Will giving your children independence help them operate the family business better?


Filed under: Buy a business — Gary Landa @ 2:52 pm


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