ZATSWHO

Can a mother-daughter team be successful entrepreneurs?



Can a mother-daughter team be successful entrepreneurs?

It's our business

1. What tips can you offer Cooper and Schwinoff about family members who start and run a business together? What pitfalls would you warn them to avoid?

On several occasions people tend to work within family businesses in order to keep maximum wealth within the frame of the family. One of the most important factors that family businesses must maintain is to maintain a line of distinction and difference between family and business dealings. This is because when it comes to family business, relatives involved in business see things from a rather personal perspective in comparison to a business that comprises non-family employees. Keeping in consideration that family matters and business are involved, making decisions with a proper consensus of all people involved in the business could be tiresome, since everybody involved would be having a relatively different point of view. Furthermore, individual profits earned by relatives on a micro level could be one major possibility in case no mutual understanding and agreement among relatives and families involved in the business. Finally, the overall operations, transactions and business deals could be severally hampered and become affected due to the conflict, leading to non-family employee demotivation and ultimately a higher turnover rate than normal businesses (Arieu, 2010).

2. Suppose that Cooper and Schwinoff had approached you when they were launching Zatswho concerning the form of ownership they should use. Which form of ownership do you recommend they use. Why?

In my viewpoint, a partnership form of ownership, with divided earnings and income of 60:40 ratio would work for the families, since Cooper already wanted to stay in the business and that it was her idea that the business came into existence. On the other hand, it would ...