Having a family-owned business sounds like a great idea, but is that truly so? Once you get your family involved with a business, there may be more than one problem to appear. Today we are going to focus on the essentials for launching a family-owned business, and then see a couple of suggestions for a business startup in 2018.
Launching a Family Owned Business – What You Need to Know
1. Set Boundaries
If you want to achieve success with your business, it’s essential to set some boundaries right from the start. It’s easy for family members to get involved in a business, but mixing home life with personal and business time will end up in a bad situation, most likely. Make sure that business discussions take place only at the office, for example.
2. Require Outside Experience
If you’re going to get children on board with your business, it’s an excellent idea to make them have a couple of years of experience in a field with a different company, for instance. Even working in a completely different field will help them gain a new perspective and see how things work outside of a family-owned business.
3. Have Clear Communication Rules
Some think that if you work together with your family, there won’t be so many differences in opinions or problems. However, this is not the case. For this reason, it’s important to establish some clear communication rules. A good idea is to set up a weekly meeting to assess your progress, resolve any disputes and clear out any differences.
4. Look for Outside Advice
When you’re handling a growing family business, it can be hard to make clear decisions. That’s why it’s always a good idea to look for some outside advice. You can always use some fresh ideas and creative thinking for new business plans.
5. Divide the Roles and Responsibilities
In a family setting, it can be customary for everybody to try and help everybody. Besides, there may be more family members qualified for the same tasks or duties. Divide them up and assign clear roles and responsibilities to avoid any conflict. If it’s a major decision, you can make it together, but if you stop to debate everything, this will affect your productivity.
6. Don’t Offer ‘Sympathy’ Jobs
One danger of having a family business is the fact that all the kids, cousins, or other family members will see you as a last resort employer. However, it’s important to keep your position and base your employment on the skills and knowledge people can bring to your business.
7. Take Advantage of the Family Ownership
A family owned business can take advantage of some unique benefits which you can’t find in other types of business. For example, one of them would be the access to human capital, such as other family members. It may not look like much in the beginning, but it can become essential for the survival of your business. Why is that? Because other family members can contribute with low-cost or even no-cost labor, or some emergency loans when you need them the most.
Family Owned Business Ideas to Consider in 2018
8. Online Business
In the last years, the Internet has completely changed the way in which people do business. It is an area that is still growing, so if you and your family are good with the website or graphic design or any related skills, it’s a good idea to take advantage of this. In this way, you don’t need to spend money on an office, on hiring people, etc.
9. Catering Business
If cooking is an appreciated activity within your family, it would be great to get into the catering business. Each person can contribute to something tasty and special, so they can create an interesting menu. The best thing about this idea is that you know everyone’s strengths and weaknesses. Even if some of them will not want to get actively involved in the business, they can take care of administrative tasks, for instance.
10. Restaurant Business
This is a next-level idea for the catering business. Opening a restaurant is a good choice if you have a large family and they’re all in the business. You need to invest much more time, money, and effort if you want to reach success. Alternatively, you can consider buying an existing business.
11. Cleaning Business
Getting into the laundry business is yet another useful way of making a profit. It’s not that glamorous, but it’s surely a successful venture. Even if you are targeting home or business clients, you can achieve some consistent results at the end of the day.
12. Tutorial Center
Tutoring is all about sharing with other people what you know in a field in exchange for a fee. Of course, you must be passionate about what you are teaching if you want to do a good job. The clear advantage you would have if you got into this together with your whole family would be the fact that you can have several people who are good in different fields. Thus, you can expand your business in various domains. Keep up with the demands of technology and set up a website, an app, or Skype sessions, for instance.
13. Biscuits and Confectionery Making
Going back to cooking, we all know the typical aunt who loves making sweets and biscuits for her nieces and nephews. So, why not turn this into a business? You can focus on vegetarian or raw specialties, for example, since these are highly popular these days. Moreover, if you plan your activity well, you can make lots of products in a short time, so you can have higher profits.
Here you can watch a clip showing you some common problems encountered by family businesses:
If you’re thinking of launching a family owned business, you should know that you need to organize it very well. Don’t give jobs out of pity to people in your family, but rely on their skills and experience. When it comes to choosing the type of business, try to take advantage of the passions and hobbies that are already present in your family.
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