When talking about a family business, the first thing that comes to mind is the American dream. And what’s wrong with Dream?
Is there a risk of failure? Some family businesses succeed, and many collapse. The main question is how to start a successful family business.
With a focus on good examples, we’ve compiled the best tips for anyone looking to start a successful family business.
Do not neglect formalities and do not sign agreements
Learn as much as you can about a successful business and learn from your lessons. What are the differences between a family business and a classic business? There are many, but it is not a lack of legal agreement, of course.
Starting with the idea itself, write and write everything down. Life is unpredictable and you don’t know what’s in store for you and your partners.
Writing a partnership or collaboration agreement will encourage participants to do their jobs effectively, even if things are really bad.
In such an agreement, it is important to uncover not only your responsibilities, but also abstract things like mission statement , business goals, values, etc. Be sure to include estimated salary levels, hours, vacations, and other items related to running the business.
Go ahead and define how the fatal decisions will be made? What if one of the partners wants to sell the business? What happens in the event of divorce? Yes, it is not a very pleasant and comfortable conversation for a family. However, it is best to discuss these issues in advance and avoid unnecessary negative emotions.
Explore the area in which you want to start a business
The most common mistake desperate romantics make when looking to start a business in an area they are passionate about is lack of knowledge in that area.
Of course, they know all about the product creation process. They can even get an idea of how to provide the service so that customers are happy with the results. In other words, they are at the forefront, unaware of what is going on behind the scenes.
Before investing all of your savings into a table idea, you should do some field research. You can even order a research paper ordered from a trustworthy essay writing service specific to your industry, the market situation, etc. This small investment will save you a lot of money and probably save you real money.
Don’t mix personal income with business income
Small business owners invest a lot in business development. Sometimes it can seem like private funds and labor finances are inseparable.
However, it is better to create a separate bank account for family use and another For Your Business … Such a step will make calculations and accounting easier, and you will see its benefits in perspective.
Treat everyone equally
Sometimes it happens that preference is given to a certain position. transferred to a parent, regardless of skills, abilities and work experience.
A family business cannot afford to hire people who do not fully contribute to a common goal. Each person has their own strengths and weaknesses, so taking into account these functions delivery of part of the work a third might be a good idea.
Most likely, there are practically no specialists in all areas of your family. Sooner or later you will have to hire someone from the outside.
However, everyone should be treated equally in terms of hiring, salary and promotion. Taking care of family members will demotivate other employees and create a stressful work environment. Here are some guidelines for recruiting in a family business:
- All family members should have extensive field experience,
- Everyone must have the appropriate qualifications
- The remuneration of family members must not be higher than that of other employees,
- Don’t force your family members to go into business.
Separation of personal time and working time
Many business owners spend all of their free time at work. What if your whole family can be identified as “business owners”?
Most likely, your communication within the company is already limited by the problems of the company, and this is only a training stage! And after?
Be careful not to discuss work-related matters and transactions at family dinners, weekends, or vacations. It’s okay if you sometimes have to break these rules. Take a few minutes to resolve the issue and get back to having fun with the family.
Distinguishing between personal and professional issues can seem daunting if your business is your life. However, this rule must be strictly observed if you do not want your family business to end in the first generation.
Once you decide to start a successful family business, it can make a big difference in your life.
Some business owners pay too high a price for their desire to tie family and money together. However, there are dozens of success stories where family passion has become a lifelong pursuit for all members.
Make it your story!