Family business - where to start and which direction to choose
"One head is good, two is better" - this proverb can be applied to those who decided to do business, but not alone, but as a whole family in a row. This approach to business has its advantages - there are no strangers, at the initial stage, you can significantly save non-hired personnel, and so on.
Next, we'll talk with you about what a family business is, which one is better to start, and what you need to consider before starting your family business.
What is a family business?
Of course, you can resort to official economic formulations, but let's explain everything in simple words. So, a family business is a type of entrepreneurial activity in which only relatives are involved, and there are practically no outside people.
Family Business Options
You can create a small bakery and run business in it for several decades in a row, or you can develop and grow into a whole family corporation - as you like.
There are the following types of family business:
- Small business - no more than 10 people, often they are all relatives to each other, external staff or not at all, or 1-2 people as assistants or even partners.
- Family company - a whole hierarchy can already be traced here. In this case, we are no longer talking about a small type of entrepreneurial activity, and each relative, often, works in his own specific area.
- Family corporation - this type of business is passed down from generation to generation, the shareholders of such a company are family members.
What kind of family business can you start? Consider the top ideas further.
Best Small Family Business Ideas
Many aspiring entrepreneurs are thinking about how to create a family business, because when all family members do one thing, the bulk of the profit remains within the family.
In this article, we have collected relevant and profitable ideas for a family business, as well as give some useful tips for starting their own family business.
Choosing the type of activity
First of all, you need to select the type of activity. To do this, you need to assess the level of competence of family members - to find out who has what kind of education, skills and abilities.
After that, you need to analyze the market, identify the most vacant niches, compare this data with information about relatives, and select those options that will be the least competitive.
There are several types of activities that are prohibited by law for family businesses:
- PSC (private security company);
- Pharmaceutical production;
- Activities on the securities market;
- Manufacture of pyrotechnics;
- Manufacture of alcohol and tobacco products;
- Manufacture of weapons and ammunition.
Despite the fact that it is a family business, it is primarily a business. And any business should be based on a hierarchical structure.
The widespread version of "everyone does everything" has long been proven to be defective, so responsibilities should be clearly assigned. In this case, all responsibilities should be spelled out in the charter and contracts. As a result, your firm will benefit and the environment will become more working.
To create a truly successful business, it is important to define financial issues: who will be financially responsible, who will be responsible for finances and interact with the bank and the tax service, who will have the authority to sign (and what order).
It is necessary to set salaries in advance, work out provisions on bonuses and bonuses, determine to whom and on what conditions it will be possible to take money from the business. The understanding that the company's cash desk and its own wallet are not the same thing must be conveyed to everyone.
Quite often people talk about the need or rather the desire to create their own family business, indeed the idea is even very attractive. After all, on the one hand, everyone works together, on the other hand, the proper level of control is ensured, after all, relatives. This position is in many ways understandable and perhaps somewhat justified, although of course it has a number of significant nuances that you can read about here (do not forget to subscribe to the blog for aspiring entrepreneurs and receive all new articles in your email). But today we will not talk about pitfalls, but let's talk about the pleasant sides, or rather about the best business ideas for the family.
Successful Family Business Ideas
Ideas for a family business are placed in no particular order, due to the impossibility of unambiguously identifying favorites.
Number one on the list is a family business in trade
- a specialized store for the sale and sewing of curtains. In this case, thanks to relatives, you can provide a number of organizational aspects:
- First, quality control. In large industries, there are entire departments, in a small business it is really good to be supervised either by a very good employee (and this is already a decent salary) or a family member, which is more logical and reliable.
- Secondly, the purchase of materials. A small business in the form of a small atelier store does not physically need large leftovers of goods, while it must have a large selection to meet the needs of customers. The consequence of this balance is the constant need to purchase small batches from different suppliers (based on the realities of business, all this is done for cash), as a result, attracting a “stranger” is fraught with losses (theft).
As you can see, the above two aspects require the presence of reliable people simultaneously in two directions (one simply will not be physically in time), and this is where such a form of small business as a family business fully manifests itself. In any case, it fully justifies itself in this context.
But one important nuance, trade with close relatives justifies itself only in certain cases and I do not recommend using it everywhere.
In second place is the idea of a business with close relatives indirectly related to trade, but based on production
As you yourself understand, the second successful area for family small businesses, where there are good examples, is the creation of small mini-workshops with sales areas. The most successful example is a store selling marzipan jewelry. The scheme is something like this:
Good day! Today we will talk with you about family business and options for business ideas for the whole family.
Before writing an article, I went to look at the TOP articles on this request, my surprise simply knew no bounds. On the topic of family business, the search returned excellent articles with normal sites, or simply worthless sites did not touch on the topic of family business, or search engines began to correct themselves.
In general, everything is fine and if my article does not get into the TOP of the search results, I am completely calm, because you can read about the family business on other equally interesting sites.
First, it's worth defining what a family business is:
What is a family business
Here I didn't even bother to look at the official wording about the family business, so that it doesn't affect my opinion and so that I can describe it in my own words.
A family business is a type of business that involves the family itself, or people related by family ties. This is perhaps the simplest formulation of this type of business.
There are several options for a family business, let's look at them:
Family Business Options
Earnings in business and at work
Family business ideas and advice
A family business has many benefits. One of them is working with people who are trustworthy. In addition, each family member is “rooting” for the cause and trying to invest as much energy as possible for prosperity. Regardless of what kind of business the family runs, the main income will remain within the family. For these reasons, more and more families want to start their own business and run a family business. However, there may be pitfalls along the way. For example, when business difficulties arise, relationship discord can also occur. But if you are not afraid of possible problems and know how to resolve all issues without conflicts, then the family business is for you!
Having decided to start a family business, some already know in advance what they will do, while others are in search of suitable ideas. In this article, we have collected all kinds of options and ideas that will help you decide on the choice of your business.
Family Business Types
Before starting any business, let alone a family one, it is necessary to determine exactly the number of family members and relatives who will take part in it. There are the following varieties:
Family corporation. In other words, this type of business can be defined as a joint stock company in which the shareholders are representatives of one family, and all rights are transferred exclusively by inheritance. To create such a business requires a lot of investment and the choice of a serious direction.
The family company is a less serious type than the previous form of business. In such companies, each family member has his own place, or position, and each does his own business.
Small business. Most often, it is this form of business that is implied when the conversation turns to family business. Two, three or more people can participate in a small business, depending on the activity and need.
If you decide to start a family business, the following points should be taken into account. The tips below will help you organize a family business that will bring not only profit, but also a lot of positive emotions. So:
- Be sure to set boundaries that separate family and work relationships.
- Each family member should know the range of their personal responsibilities and understand the importance of fulfilling them.
- Develop and read the relevant literature, conduct regular analysis of your activities.
What determines business success? First of all, success depends on the chosen direction, competitiveness and the abilities of each business participant. Much depends on the size of the initial investment. When choosing a direction of activity, it is necessary to take into account the characteristics of each family member who wants and will take part in joint activities.