Small Family Business Management

Introduction

Family business is a company owned and controlled fully by a family. It is begun by a founder with the intention of passing on the business to the descendants. Family businesses have strengths in performance as compared to their counterparts. Thomson in his financial study in the Newsweek showed that family businesses outperform their rivals for the six indexes in Europe. This excellent performance of family business is resulted by the strengths such as commitment, knowledge Continuity and Reliability and Pride. The family members own business and, therefore, work towards its success. They portray dedication in their duties towards achieving the company’s goals and objectives. Having a long term objective of passing on the business to generations, the members work tirelessly to see the business to success. The family members running the business also intend to pass the knowledge that they have in the running of the business to the generations. This makes them work with a dedication so as to be copied by the recruited group of management. This leads to continued success as every management group works hard to teach the next. In addition, members of the family running the business work hard to improve the quality of their products and to earn goodwill from other stakeholders. They work tirelessly to achieve this since the business has their name and their reputation depend on the success of the business.

Family businesses have several weaknesses that hinder them from completely excelling in the long run. Although most causes of failure are common to all businesses, there are some that are more specific to family businesses. Some of these weaknesses arecomplexity, informality and lack of discipline. Family businesses are more complex in governance as compared to non-family businesses. This is resulted by adding family emotions and considerations to what the business has to deal with normally. Family businesses are run with a lot of informal procedures and practices. Once the business expands in size and the running family also increases it becomes a disadvantage as many conflicts arise concerning governance.

Family history  

Gabriel Detroit was born in 1900. He was a charming young man who was determined. Gabriel joined school and managed to pursue a degree in nursing and graduated in 1928. He was the only son in his family. His father encouraged him to become a medical practitioner. Detroit worked hard and did not let his father’s efforts down. After school, Gabriel Detroit was employed in a private clinic where he was paid little money. He appreciated the earnings and worked hard to gain experience.  This man remained in the private clinic for six months and then he was employed by the government. Detroit enjoyed working in the government dispensary for one year and then resigned. -/

Detroit started a private clinic in 1931 and named it Park Family Medicine Business. His father supported him with funds and ideas. As the only child in the family, Detroit enjoyed family capital and extended his business rapidly. He married Laura in 1935, and they were blessed with three daughters and two sons. The wife was also a nurse and helped Detroit in the clinic. His. children grew up admiring their father’s business as it earned them a living. They lived a high class life since their father earned enough from the business.

In 1940, Detroit went back to class for further education. He enrolled to the university and pursued a degree in clinical medicine. This increased his knowledge and expertise in the medical field.  The business had three medical practitioners. These were: Dr. Detroit as the clinical officer, Mrs. Detroit as the nurse and Mr. Christopher as the laboratory practitioner. The clinic dealt with common medical issues in the society. Dr. Detroit managed his business effectively and managed to open another branch in the region. His business succeeded as a result of good cooperate governed, financial management and commitment. The main goal of Park Family Medicine Business was saving life and improving health and well-being of all clients. The society benefited from the business as it was cheap and offered quality services. There was a rapid increment in the number of clients visiting the clinic per month. In fact, the business recorded 60% increase within the first ten years. This encouraged Detroit to open two more branches in different towns.

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The family business flourished, and the children grew up admiring what their parents do for a living. This made three of the five children pursue a degree in medicine and one in nursing. Only one daughter differed from the others since she was enrolled as a soldier immediately after high school. Mr. Detroit encouraged his children to work hard and join him in this life-saving job. He kept telling them that what he has belonged to them, and they will only manage it if they understand his profession. Unfortunately, the end of the Second World War ended his life too. Mr. Detroit died in 1945 after a bomb blast. He left when his business was at its peak.  The business had over 60 employees and was making huge profits.

Dr. Detroit’s death announced a u-turn in his business. His wife employed Mr. Washington to manage the business. Mr. Washington successfully managed the business and everything moved as expected. However, the first-born son finished his medical degree and came into the business with new ideas. Alex wanted Mr. Washington fired so that he could now manage the family business. Mr. Washington was fired, and Alex took over. Within the next two months, the other children came in and demanded their share. They all wanted to manage the business. The daughters got married and the sons married. The family now had ten people managing the business. This resulted to daily conflicts and down- fall. There was no one to calm things down since their mother was depressed. She could not cope with the situation where her children were misusing the property she had struggled to gain for years. Mother quietly died and left the children fighting for the inheritance. Everyone claimed that he or she is a part of parcel of the property and should have a share. Their spouses also were part of the business by default.

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The successful business started by Mr. Detroit turned out to be a source of pain and mourning. The second-born son killed his sister after a quarrel on who should be hired as a laboratory practitioner in the main branch. This was followed by a series of quarrels between the siblings. No one wanted to use a single coin in the management. However, everyone wanted to earn enough money for his or her upkeep. Those who were employed resigned with hopes of enjoying the fruits of their father’s work. They competed on who has hired more employees without considering their skills and expertise.

After a couple of years, the remaining members of the family gave up with the loss making business. The clinic had many debts which required to be paid. None of the family member was willing to pay the debts. The family was already broken up, and they could not agree on the way forward. Therefore, the clinic had to be closed down. The employees went to the court and sued the family. Unfortunately, no one was responsible for the losses employees had done since the business was still running with their father’s name. The government auctioned two branches and got money to compensate the employees and financial institutions which had not been paid.

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In 2000, Detroit’s family decided to meet and discuss family issues after several years of neglecting the extended family. The meeting resolved that any person who could manage to revive the business has the mandate to do so without interference of the family members. The family agreed that one member of the family should revive the business and run it as a sole proprietor or partnership without family interference. This is how Dr. Detroit junior got a chance to revive the business in his father’s premises and added the name “circle” to the business.

Reasons for the failure of Park Family Medicine Business

1. Poor management

The family business was poorly managed since there was no boss after the initiator’s death. The beneficiaries wanted to be managers at the same time, and this led to the poor coordination. No one was there to know what should be done at what time.

2. Lack of skills

Detroit’s children lacked business management skills. None of them had done business management or an equivalent course. Therefore, they did not understand the strategies of maintenance the family business.

3. Mistrust

The children could hardly trust each other. Instead, they saw each other as an enemy who is trying to gain more in the business. This is clearly seen in the behavior of the children to the extent of killing each other.

4. Lack of enough funds

A business cannot run without funds. The Detroit family was not ready to add capital to the business. Instead, they just wanted to enjoy profits and capital that their father invested. No one could add a single coin to something for the business and thus, it failed.

5. Too many managers

Every child counted himself or herself a heir of the business. In this case, all of them wanted to be the bosses. It is practically impossible for the employees to take orders from more than one boss. Therefore, the employees did what they wanted since every heir had different rules.

6. Lack of supervision

Detroit’s children were not committed in the business. They only wanted to enjoy profits without supervising what is being done in the clinics. Therefore, employees relaxed and mistreated patients. This drove patients away and reduced profits.

7. Misuse of funds

Every beneficiary did his best to get in touch with the business money. They misused business money without accounting for it. Misuse of funds reduced capital and profits from the enterprise. The accountant could be ordered by members of the family to give out money without recording.

8. Relatives as managers

The business had a chain of in-laws as employees. Every beneficiary was struggling to have the most employees from his in-law’s side. Therefore, the employees despised each other and this reduced their productivity. Additionally, all the sisters and brothers wanted to be a boss which is wrong in an organization.

9. Lack of suppliers

The clinic lacked suppliers of medicine and other equipment since there was no committed manager to coordinate suppliers. Additionally, the suppliers waited for a very long time before receiving their payment. They were sometimes not paid at all and had to quit from supplying the clinic.

10. Problem of liabilities

The clinic had loans from financial institutions and individuals. However, the funds were misappropriated, and the business could not pay the loans. Therefore, the government had to intervene and auction the business and the assets including land. This called for dissolution of the business.

Park Circle Family business

Objectives

Park Circle Family business is guided by the following objectives

• To create a health check-up facility exceeding clients expectations in the region

• To provide excellent and quality health care services to all members of the society

• To create a health clinic that will satisfy the community needs

• To form a medical facility that is capable of managing its cash flow effectively

• To serve customers with an aim of serving lives and increasing their well-being

• To raise the number of clients by 20% per annum through word-of-mouth referrals and superior performance

• To come up with a comprehensive website which include online booking capacity and additional information concerning the practice,  health information, demographic information and operational hours

• To handle more than 95% of clients’ visits and miss less than 5 %

• To have at least 400 visits per month every year

Mission

To promote the well-being and health of the local community by providing high-quality health services accessible for people of different genders, all ages, cultures, ethnicity and religion. Park Circle Family Medicine Business is committed to providing quality services that will surpass the expectations of the clients. The commitment of the business to provide quality services results to a profitable and successful business. Effective corporate governance and commitment enables achievement of the facility mission.

Keys to Success

Office Organization and Staff

• Recognize that office staff is as important as the physician in the success of the business and its future

• Motivate staff by allowing them to benefit from amplified profits, which the facility generates

• Create a rationalized office system to reduce patients’ waiting time

• Concentrate on client care

• Educate clients on the significance of the preventative care

• Inform patients about the importance of monthly and yearly check-ups appropriately

• Implement an accurate and aggressive recall system which will remind patients the importance of regular check-ups according to their health status

• Keeping a low overhead

• Optimizing the number of clients the facility receives in an hour and provides quality medical care services

• Charge the fairest bills possible to make the services affordable

• Aggressively market the facility and create presence in the society by providing school talks,  hospital talks, doing volunteer work, ER calls and business society meetings

• Network to acquire referrals from professionals such as Hospital Admissions, Specialists and ER doctors

• Having an office front located on a busy street and having an accessible parking

• Locating offices in an area with a reasonable patient-to-doctor ratio

• Locating in offices close to the General Medical Surgery Center where there is easy access to special care if need arises

Patients

Finances

Sales and Marketing

Organization Summary

Park Circle Family Medicine business offers preventative and general health care services for both genders and all ages to the surrounding communities. Park Circle Family Medicine business utilizes the modern equipment, trained staff, sound medical training, nearby medical facilities and referral systems in order to provide maximized care for every patient.

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Company Ownership

The Park Circle Family Medicine Business is a sole proprietorship. It is owned and operated by Doctor Nathan Detroit and sons.

Services

Park Circle Family Medicine provides general care services for all ages. Additionally, the facility provides multiple procedures, which complete a health care facility. Park Circle Family Practice provides procedures including the mole removals, trigger point injections and biopsies among others. The clinic also incorporates multiple modalities including cryotherapy, shaving, and excision removal of lesions, biopsies and hyfrecator. The cost depends upon the materials and equipment used, the amount chosen for every procedure and the physician’s time.

Park Circle Family Medicine Business philosophy is that the most favorable performance and health can be attained via proper balance of nutrition, education and exercise. The facility aims at educating patients how to eat and exercise as well as treating them. The facility, therefore, offers group classes where patients are taught about hypertension, diabetes and nutrition among other topics. Park Circle Family Medicine Business focuses on individual cases. Every patient is treated individually and is given appropriate advice regarding exercise, nutrition and rehabilitation depending on his/her case. The clinic aims at creating a well-rounded experience for clients in order to maximize their health. Park Circle Family Medicine Business maintains privacy according to the international World Health Organization standards. All patients are welcomed to the clinic including those who do not have medical insurance. Saving a life is the main objective of the clinic; therefore, no one is refused to be given healthcare services. Additionally, the clinic is based on equality background whereby patients are not discriminated on the basis of their socioeconomic status, color, creed or race. Every person in need of medical services or advice is welcome at Park Circle Family Medicine Business. The clinic provides services including the following:

Gynecology:

• PAP Tests

• Family Planning

• Annual Well-Being of Women Examination

• Acute Gynecological  Problems

• Infant Care

• Newborn Care

• Annual Physicals

• Possible Immunizations

• Routine Services

• Biopsies of dermatological lesions or referral

• Immunizations

• Removal of skin tags, minor lesions,  warts and moles

• Allergy shots and Testing

• Pneumovax

• Tetanus

• Lesion Removals

• Hyfrecation for Blemishes and Lesions

• Laceration Repair

Pediatrics:

Dermatology:

Minor Surgery:

Adult Medicine

• Diabetic Teaching

• Obesity and Exercise Counseling

• Routine and Preventative Services

• Dietician/ Nutritional Services

• Cardiology:

  •  Stress Testing
  • EKGs

Information Technology

Park Circle Family Medicine Business uses a networked, secure electronic medical record system. This enables the facility to comply with the World Health organization standards and improves efficiency and effectiveness of billing.

Conclusion

In conclusion, it was and is a good idea to start the medicine business according to the objectives and aims of the business. The owner had the welfare of the society at heart when he first came up with the idea. Dr. Detroit also had the best interest of the society when he revived the medicine business. It is this factor that makes the clinic treat people from all walks of life inclusive of those who have no medical care cover. If care is not taken, the current Park Circle Family Medicine Business will end up failing as the previous one. Family businesses are hard to manage successfully due to the management weaknesses outlined in the easy. Therefore, for Dr. Detroit to succeed in reviving the medicine business to operation he needs to take caution of all the factors that contributed to the failure of the original. In my opinion, the clinic stands a good ground of gaining popularity. The society aware of the existence of the previous clinic, and the services it offered, is an added advantage for the clinic today. With the appropriate selling mechanism it will consume less effort to market the clinic. This gives the clinic a golden chance to sell its services in the regions where it is less known. If the clinic’s management implements all that is in their business plan, the clinic will be by default marketable. The society needs a business that offers the services that are most essential. Such a company will win the support and the good will of the society and the public will prefer its services to its competitors. To add on that by fully implementing the business plan the Park Circle clinic will have met its objectives, thus, giving satisfaction to all the stakeholders.