IELTS Task 2 Sample Answer 4 - Some people think that the best way to run a business is within the family. What are the advantages and disadvantages of a family run business?
Businesses have been adopting various techniques in order to flourish in the competitive market. It is thought by a few that businesses can be run much efficiently with the help of family members. Though the management of business with the help of family members helps to reduce its operating cost, it is not free from drawbacks.
The foremost advantage of conducting the business with the help of family members is that it helps in minimising the operating cost. Only if the operating costs are minimised, a business will be able to earn adequate profits. With the employment of family members the expense on salaries can be minimised to a great extent which is a major head in the operating cost. Furthermore, the simple organisation structure and flexible work environment contribute towards increasing the efficiency consequently making the personnel more determined towards the achievement of organisational goals.
With the progressive growth in business the limitations of a family run business becomes more evident. The noticeable downside of a family run business is lack of expertise. Access to expertise is inevitable to the business especially in the growth stage. The placement of family members in different positions without possessing the adequate skills required for the job would impose an additional burden on the entrepreneur because of the necessity to employ expertise. Besides, the business may confront problems like misappropriation of funds and sometimes there is an increased chance for disputes between the family members which would hinder the smooth functioning of an organisation.
To conclude, access to the best resources has become a necessity for the businesses to ensure their survival. Running a business with the help of family members is only suitable for a small scale business, but as the organisation grows, the requirement to employ expert professionals is undeniable.