Looking for ways to start a profitable family business today?
There are endless family business ideas that can be generated from scratch or by taking inspiration from others. The new digital age is booming and so is the amount of opportunities available for a family to start.
So while the opportunities are numerous, it can be a daunting task to figure out which one is right for you and your family.
Start by thinking about what you’re interested in and passionate about. Once you have a good idea of that, think about what your family’s strengths and weaknesses might be.
You also need to consider how much time and money you’re willing to spend on your business, as well as your willingness to take on some risk.
Starting a family business can be a very rewarding experience, but it is also important to ensure that your new business is going to be viable and profitable.
That is why throughout this article we will be going over exactly what the best proven businesses available to start with your family are. As well as, going over several important tips and dynamics that you can use to successfully run a profitable family business.
We will cover both offline and online family business ideas, including some of the pros and cons of each..
Why Start A Family Business?
The desire to start a family business gets generated from a few basic needs people feel. Often, starting a family business stems from one of these main concepts.
- The desire to work with ones family and stay close with them.
- The desire to start a business in an industry where you can control what you want to do, and when you want to do it.
- To build a family legacy, that you can pass on.
- Freedom from living paycheck to paycheck.
There are a lot of perks of a family business that you don’t get with any other kind of business.
If the business is managed by the family equally, this means you will have the entire families income, credit lines, and more – to use for the business.
As well, managing a family business can be easier, because you have people you trust and love helping you manage the businesses operations.
Example Of A Family Run Business – Richard And John Weberg
My son and I mutually own an affiliate marketing business and have for many years together. Each one of us handles different responsibilities in running our business.
This allows us to build and scale our business much faster, because there are two of us to share in the workload. This also entails us splitting the profits of the business 50/50.
Now, depending on how you divvy up the workload between family members can be a determining factor in how your own profits will be split. As, maybe one member of the family takes on a bigger share of the duties and responsibilities.
Another huge benefit of working together as a family with your business, is you work much closer with your loved ones and usually are in contact with them more, which builds a stronger bond. My son John and I, have traveled the world together, spoke on stages together, and shared in reaching business milestones.
We have got to experience things together I never dreamed of, and have not got to experience with my other two sons. I talk to John, sometimes 25 times a day, all depending on what we are working on.
This has of course brought us very close. So keep that in mind when starting a family business. (Read Our Story)
How Does A Family Owned Business Work?
A family business works and can run in a simple and straightforward manner.
Each person who is in the family that has agreed to help run the business, will perform a certain set of agreed upon tasks. Each person should be designated to accomplish and run a certain perspective or aspect of the business.
You then agree upon, a percentage of profits to be paid to each family member based on their contribution to the business.
The biggest dynamic is making sure every family member involved in the business operations is equally committed to the business, and will work as hard at their specific duties as the other family members.
Additionally, each family member will own a percentage of the business. This means that if the business were to ever be sold or dissolved, each family member managing the business would receive an amount of profit from said sale of the business.
These fine details should be agreed upon, and put down in writing, before you get to heavily involved into a family business.
Here’s a summary of how a family business works.
- Each family member performs tasks and specific responsibilities they handle within the family business.
- Each family business receives a portion of the business, for if the business was to be sold.
- Each family member helps and motivates other family members in the business.
- Family and business need to be separated from one another after the work day.
Best Family Business Ideas
Some family businesses are able to become much more profitable than others. And more importantly, some kinds of family businesses are much more enjoyable to run.
This is why it is crucial for you to choose the best family business that you and your family also have some interest or passion about.
These best family business ideas will give you a great look at some of the most popular and proven family businesses you can start.
Whichever kind of family business you decide to start, you should take considerable time in making the final decision about the business model your family will adopt.
List Of Business Ideas With Low Start Up Costs
In Home Child Care Business
People are always looking for reliable quality childcare. One of the big benefits of this type of business is that you can provide care in one of your place of residence.
Not needing a place to operate your business other than one of your own homes, greatly lowers the cost of operations for this type of business.
You could start this business for as little as $2000 depending on the age & number of children your family would be interested in providing care for.
Start up cost may vary for this business type depending upon where you live- Some states require you to be licensed and some do not. You may also need to child proof areas of your home to make it safe for younger children.
You may even need to remodel a bit depending on what your state requires for safety measures.
- Low startup cost.
- Can be done from the comfort of your home.
- Easy to advertise your services – talk to parents with kids.
- Providing care for children can be very personally rewarding.
- Decent profits – With the average of 6 children allowed per provider in your home childcare, you can expect to make a profit of around $30,000 a year each. Considerably more, however, if you are located near a university or in a big city.
- Write off many everyday household items and expenses (including your rent/mortgage & heating costs) on your taxes as business expenses.
- Profits can be limited – Each family member that is in business with you can only take care of so many kids at any given time by law. Plus home size can also put a damper on profits and how many kids you can take in, even if you have more than one family member working with you. You only have so much room.
- You and/or your children if you have them may get sick more often, more kids equals more germs.
- More wear and tear on your home, furniture and belongings.
- Some children are very difficult or do not adjust well to others.
- Must love kids – saying this as a con, because if you do not, this business is not for you and you will not last.
There are many people who are successful in starting an ‘at home’ child daycare businesses, sometimes what is lacking is night time child care, as many parents work afternoons or midnight’s.
This could provide even additional profits!
Start A Lawn & Garden Care Business
In today’s fast paced world people will pay to have just about anything done for them, including mowing and taking care of their lawn and or garden.
Believe me I hate mowing my lawn, I use to like it, but the older I have got, it is so much easier to just pay someone to do it. When I am not marketing online, I want to spend my free time going fishing or camping, not taking care of my yard.
Low start up costs around $2000 – $3000 or maybe even less, will get you started with this family business. While a lawn & garden care business will require some equipment to get started, it is not going to break the bank either.
The average price for a service to mow someone’s lawn ranges between $50 and $210 per visit. Most businesses charge a flat rate per visit for grass cutting based on hourly rates or the size of the property.
- Low start up cost.
- Business can be run from home.
- Easy to get customers – just start knocking on doors, or calling real estate agents.
- Get to be outdoors and get exercise.
- Can keep increasing profits by getting more customers and hiring more help.
- Customers stick when you do a great job, can be with your business for years.
- Easy to add and cross-sell services.
My wife’s great uncle moved lawns for a living for over 40 years as a one man operation, out of his many customers, he had 92 that were lifelong.
He did not want to hire anyone, so he turned away business all of the time. If he would have hired help, he could have made even more money.
He was still mowing lawns when he passed away in his late eighties. He was also very physically fit because of his business, and enjoyed a disease/illness free life.
As with a family business endeavor – a more than one person lawn & garden care business operation could build up quite nice profits and expand into a big business!
- In some areas can be lots of competition.
- Can be seasonal in many areas – might want to do snow plowing in winter for even more revenue.
- Storms and rain delays – a bad storm can last a week, and cause many days of no work.
- Dealing with dogs and Dog doo.
- It is not very glamorous.
As you grow your customer base and offer additional services, the money will keep rolling in and piling up.
Yes, there is a chance of generating a very high income from operating a lawn care business, but it takes time, effort, and the ability to manage others well.
A Family Cleaning Business
Everybody needs something cleaned, including homeowners and businesses alike. There is a lot of dirt and germs out there, and you and your family could clean up on it, or should we say, cash in on it!
Best of all, you can get started for around $2500.00 bucks, making this another great low cost start up family business idea.
Here are just some of the supplies and equipment that you might need to get started:
- Trash bags
- Plastic buckets
- Rubber gloves
- Floor cleaning solution
- A vacuum cleaner
- Cleaning rags
- A cleaning supply cart
- Dust towels
- Carpet shampooer
And a decent sized vehicle to haul everything in.
How cleaners charge varies from a hourly rate, flat rate, and some by a square foot rate. On average, house cleaners charge $40-65 per hour nationwide. Average commercial cleaning rates vary from $0.07 to $0.15 a square foot (sq. ft) or $50 to $100 an hour.
Yet, some cleaners who specialize in doing major clean up jobs, like when a basement floods, or in the event of a fire, etc, charge even higher rates based on the complexity of the clean up job.
However you decide to do it, pricing your cleaning services is a huge factor in making your family business successful.
How much can your cleaning business make?
A small operation has the potential to make $50,000 – $100,000 a year. And much more for a larger and more established company.
It will all depend on how much you want to grow your family business.
- Low start up cost.
- Stable & low variable operational cost.
- Easy to get started, and can run it from home to begin.
- Limited experience required – most people have some sort of cleaning experience.
- Can be in profit quickly – given the low cost to start up and variable costs, it makes it very easy to be profitable. You do not have to invest thousands of dollars and get loans which means that with a few cleaning contracts or regular house cleaning work, you can be in profit.
- Demand for cleaners increase – every year, the cleaning industry has been growing. This makes it an amazing industry to be in.
- Lots of opportunity for growth and expansion – with specializing.
- It is a dirty job.
- Tough physical work – providing a cleaning service requires you to do a lot of physical work. Bending, stooping, crawling, getting on ladders, stairs, etc.
- May take a while to build up clients and income, as this profession has high competition.
- Competing on pricing – you do not want to be the cheapest or cost the most, have to find a balance to keep your customers.
For more information on starting a family cleaning business read this article, the guy who wrote the article took his own cleaning business to over 100K monthly.
Start A Property Management Service
Let us give you some examples of the type of property management business we are talking about.
We live in Northern Minnesota, and we have very long winters, they usually last about 6 – 7 months.
Now, because of our cold, harsh and very long winters many retired people leave this area in the winter and go somewhere nice and warm, then they return home in the spring.
These “snowbirds” need people to watch over their home and property while they are gone, and they will pay good money to have someone do this service for them.
Even my Dad makes a few bucks every winter when his neighbor leaves to go south.
My Dad watches over the neighbors property by going inside every so often, to make sure the furnace is still running, and there are no catastrophes. The neighbor pays him $300 every year to do this for him.
Not only does his neighbor pay him, he also pays someone to plow and shovel his driveway all winter as well, and pays someone else to shovel his roof off, when we get a lot of snow.
I am sure that my Dad’s neighbor and snowbirds like him, would love to pay one service to do all of these things for them, instead of having to pay and rely on multiple people.
Offering property management services to snowbirds is not the only opportunity to offer up your family’s services.
Many people leave their property or home unattended for periods of time, for many reasons. And are in need of someone to take care of it while they are gone.
They may need you to mow their lawn, water their plants, check their mail, feed their cats, or just regularly check on their home or property to make sure everything is OK.
As well, banks and real estate agents many times hire property management services to take care of homes that are up for sale and have no one living in them.
It is the same with people who have vacation property that leave them unattended for long periods of time, they hire services to check in on their property.
Who would need your family’s Property Management services
- People away on vacation.
- People who live in warmer climates in the winter.
- People who have been called away suddenly for a medical emergency or for work.
- People who do not want to bother their neighbors by asking them to watch their home while they are gone.
- People who have moved out of the area before their house sold.
- People who are waiting to move into new home that they have purchased.
- People who have vacation property they seldom use.
- People who need care for their pets and would like to leave them at home in familiar surroundings and know they are being cared for on a regular schedule.
- Realtors that need vacant properties that are for sale to be cared for and watched over.
- Banks that need vacant properties that are for sale to be cared for and watched over.
Their are boundless opportunities in this area for a property management service to grow and prosper.
Listed here is a business in Homer, Alaska that provides these exact types of property management services we have been sharing with you.
This is another really great low cost family business idea you could start for $2000 to $3000.
How much you would charge would be dependent on the services being provided.
You would want to decide on what services you would take on, and do your research for what to charge in your area for each type of service you would be willing to do.
- Low start up cost.
- Low overhead.
- Can run business from home.
- Not a lot of experience needed – if you know how to care for a home and it’s property.
- High customer retention rates – once trust is built up. If people trust you, that is the major battle, they are not going to go looking for someone else.
- Higher likelihood of getting referrals as your trust and reputation are built up.
- Lot’s of opportunities to expand and grow your revenue.
- You are responsible for other peoples homes and property – having to deal with any issues that arise, potential theft, damage or major issues that arise.
- May be slow to grow the business as acquiring new customers may be difficult depending upon your reputation – people need to trust you, they are letting you in their home and on their property without them being present. So must have great rapport building skills, and good referrals.
Watching over peoples properties is really a great family business idea, and would have a very low over head and start up cost.
With this family business idea, the sky is the limit in regards to your income potential.
Start An Affiliate Marketing Business Online
This is exactly what me and my youngest son do for a living and have for many years. We have built multiple 6 + figure incomes in this space.
And the best part is we do it together as a family..(Read our Story)
There are a multitude of ways to get started with affiliate marketing, and it is very low cost to get started. $1000 bucks will get you and your family going in the right direction.
One of the greatest benefits of doing affiliate marketing online, is it is done almost 100% from the comfort of your home or from anywhere you have access to the internet and a digital device to use, such as your phone, tablet or laptop.
And the potential earnings versus cost of doing business is crazy good. There are affiliate marketers who earn millions of dollars a year and everything in between.
If you do not know what affiliate marketing is or how it works, please read the article which will explain it in more detail. The thing here that we want to point out is online marketing is not exactly like building an offline business, like the ones we described above. You may use some online means to expand your offline business endeavors, but a 100% online business is a much different animal.
There is a much steeper learning curve, unless you already have online marketing experience.
The biggest thing you will need to invest your time and money into is in learning how to actually sell things online.
Meaning you can eventually make way more money, with way less effort.
The methods of getting started are numerous, you basically need to choose one and master it. Once you do, you can add more elements to your affiliate marketing efforts.
- Email Marketing
- Video Marketing
- Social Media Marketing
- PPC – Pay Per Click
- Promoting Biz opps
- Low start up cost.
- Work from anywhere in the world – all you need is a digital device and an internet connection.
- Work when you want, and where you want.
- Can promote and sell pretty much every type of product and service available online.
- No limits in scaling ones income – you can reach masses of people through online marketing.
- You do not need to do customer support.
- No shipping of products or delivery.
- Big learning curve.
- High competition.
- No Guarantee of Revenue – you do not get paid by the hour or job, if you do not sell something, you do not get paid.
The digital age is upon us, and it is opening the doors to create income in ways most people never thought possible, it is also opening up the doors for savvy offline businesses to expand their profits more than ever before.
Sometimes you just need to think outside the box!
Read Also: Pros And Cons Of Working From Home
More Small Family Business Ideas To Start
Here is a list of several more good family business ideas to start, the ones we have listed here have higher start up cost. So depending on the resources available to your family, you should consider these as very good options as well.
Start A Family Catering Business
Do people rave about your family’s cooking? If so, it just might be time to start a family catering business.
People love great food, but not everyone was borne to cook, some people just have a special knack for cooking.
With starting a catering business, if you love making great food and sharing it with others, you get to put your energy into something you are truly passionate about!
Another big benefit is the ability to start your family catering business from home – It’s not necessary to have a physical storefront or office space to get your business started.
You can do everything from the comfort of your own home, at least in the beginning and depending on how big you want to grow your business.
You may have to make a few alterations to your kitchen or if you have the extra room in your house, set up a new kitchen area specially for the business. All depends on your states health department requirements.
Average Startup cost: $10,000 to $50,000 – This depends on your current finances and savings.
Of course, prices will vary when buying equipment depending upon where you live, and if you buy new or used catering equipment.
Here are some steps you can take to get started in this unique family business idea.
Start A Food Truck Business
If you do not like the idea of a catering business, and your family loves to cook, then maybe starting a food truck business may be a better option.
Because anyway you look at it, food is Yummy and people need to eat! Selling food to the public, family, and friends – is a fun and exciting business with big profit potential. (If you have good food that is)
Having a food truck is a pretty straight forward family business you can start, and it is one that you can scale quickly as well.
As your food truck becomes successful, you can start more locations and branch out to other areas. This could even include your family business creating your own foods and selling them as a distributor to other vendors.
For example, there is a true story of a lemonade stand business that a young girl, Mikaila Ulmer, started when she was only 4 years old that turned into a multi million dollar family business.
This girls product is now sold in over 1500 stores across the United States.
Anything is possible, you just got to get started!
Average Startup cost: $40,000 plus – Again, all depending on what you already have or can get your hands on to get started. And prices will vary when buying a truck and equipment depending upon where you live, and if you buy new or used equipment to get started with.
Listed here are some steps you can take to get started.
Flipping Homes For Profit
You ever watch any of the popular shows on TV where they buy run down homes, and fix them up and then sell them for profit?
My wife and I love those shows..They are kinda addicting to watch, because it is amazing to see the transformation that takes place.
Well, do you and your family have a knack for remodeling, and transforming something ugly into something beautiful?
Maybe flipping real estate properties might just be the best family business idea for you.
Is flipping homes profitable?
Yes it can be when done right, the low average profit per flip is around $30,000.00 and can be much higher depending upon the property bought, location, price paid and value of others houses in the same market area.
I know in our area alone, the houses here are very old and there is an abundance of opportunity to flip houses for profit.
There is a shortage of people doing it.
The houses in our area that have been remodeled sell very fast, because now a days, people do not want to have to fix up their home, they want to buy it live in ready.
Average Startup cost: ?????? – This is going to vary drastically. Do you already have the tools to remodel a home? If not, purchasing the proper tools and equipment can add up fast.
Your going to need a truck or a trailer to haul things in as well.
And even though you can buy a home with a lower down payment, it is going to vary greatly depending upon the area your going to flip homes in.
Learn more about flipping homes here and steps you can take to get started.
Start An Equipment Rental Business
Starting an equipment rental business is a great way to make money and provide customers with the equipment and tools they need for their businesses and projects.
There are many different types of equipment rental businesses, so it’s important to choose the right one for your skills and interests. When starting an equipment rental business, it’s important to have a business plan, marketing materials, and the right insurance coverage.
Equipment rental is a very viable business to consider. That is because not everyone including professionals have the finances to purchase such tools.
As well, many times they need the equipment or tool for only one job or event, so it is better for them to rent them, than purchase.
Factors to consider.
Starting this business would require needing some kind of space large enough to house a variety of equipment.
Some niches are a lot less expensive to start and would require minimal space, some even start out of their garages.
Now, you could always start with a very specific industry that you find there is a need for in your area, and expand industries as your business grows.
Renting out equipment of any kind, in almost any niche industry, can be an extremely profitable family business venture.
Once you pay the upfront costs for buying the equipment or tools that you will rent out, everything moving forward is more than likely going to be profitable.
Whether you want to rent equipment to construction companies, firms, individuals, you name it – you have a nice upside potential to being able to even sell the family business years later.
Average Startup cost: ?????? – This is going to vary drastically, depending on the niche industry you are starting with, and do you rent space or buy property outright for this business endeavor.
Make sure you take time to think about what kind of equipment you want to rent out to others, and the costs associated with getting into this kind of family business.
Read Also: Equipment Rental Business ideas
Start A Lead Generation Business
All of the businesses we have shared with you so far need leads, and so do most business. Lead Generation is big business, and can be VERY profitable!
Here is an example: Have you ever heard of a company called Angi’s List? This is an example of an online lead gen business that became a multi-million dollar enterprise.
Now, just called Angi – they built their business online as the go-to place to for finding quality contractors for various home services and building projects.
Every time someone visits the Angi website and submits their information, Angi will share that lead with multiple matched up local businesses and each of them will pay Angi for that lead.
Businesses will pay anywhere from $7 to $100 per lead or more depending on their trade and market area, plus a $350 annual fee, to participate in the Angi program.
Usually Lead Generation businesses will specialize in very specific industries, as this makes acquiring leads less costly and more profitable.
Average Start up cost: $10,000 to $35,000 – All depending on your experience level, and if you need to hire some professional help to help you run and manage the business.
Click here – How To Start A Lead Generation Business From Scratch – you can learn more about what a lead generation business is and what it takes to get started.
How To Start A Family Business
Starting a family business is going to take time, effort, money, and hard work. We’re going to lay out, how to manage and run a family business efficiently. Here’s exactly how to start a family business, and how to run a family business.
Step 1: Decide which family members are going to be a part of the business.
It’s important that your family business consists of individuals who have enough time, money, and effort – to invest into the family businesses operations. This is important, because an incompetent family member can drag down the businesses operations, profits, and happiness.
You will want to start your family business by only including in the business – family members who are genuinely interested, and committed in being a part of the business.
Here are some aspects of character traits each family member should have if they are going to be in the family business.
- Hard working
- Interest in the industry the family business is going to be in
- Financial security or ability to invest in the business in some way or another
- Enjoyable personality
- Ability to work well with others
- Open to criticism and has a desire to improve
- Goal oriented
Step 2: Come up with business ideas in the niche or industry the business will be in.
- What requirements and licensing are there to getting started?
- Who are your customers going to be?
- How much start up capital is needed?
- Is the business something you can truly see your family doing?
These kinds of questions and more, need to be answered and thought about. Because deciding the industry or niche of your business, is one of the foundational and lasting aspects that will dictate how the business grows – for the entirety of its existence.
You should decide to go into business, in an industry that the family is genuinely interested in being in.
For example, our family is great at making amazing and delicious food. This means that it would generally be considered a good idea, for our family to get into the food service industry. Or, we could just start a food business of some kind.
My middle son Joshua, loves to cook and barbecue, so he has started his own cooking and food blog called ‘Josh’s CookHouse’
By starting a successful family business in an industry the family is genuinely interested in, the business will be much more profitable. (People excel in positions of interest)
Step 3: Decide which family members will manage each business operation.
Here’s how to run a family business if you designate each area of responsibility to a different family member.
- Dad: Runs the overall management and designation of responsibility
- Mom: Manages finances and dictates expenses
- Son: Runs marketing and advertising
- Daughter: Follow ups with and closes leads
- Cousin: Serves and manages customers
Depending on how your family is structured, or how many family members will be going into business together, you can change each person’s’ responsibilities to fit their personality, or their strengths.
You should write down each family members responsibilities and what will be required of them, and notarize it as part of your business legal.
So that if anything happens with your relationship, and one person is not doing their duties it is spelled out, as to the actions that will happen next to exit someone out of the business.
Step 4: Create the business.
There are a few general steps you will need to follow in order to create your family business successfully. Here is a list for you to use.
- Get your LLC
- Setup Your Business Bank Account
- Setup Payment processing
- Get Potential Necessary Licenses or Certifications
- Decide On Business Location (Physical or Digital)
- Get a business loan (if the family business needs additional funding to run the business, that cannot be provided by the family)
- Write a business plan – The most successful businesses are those started by entrepreneurs with a solid business plan.
Each of these steps is crucial for your business to run and exist.
Step 5: Get inventory you will sell, if necessary.
You will need to make sure that you have the right goods and product that your future customers want.
This is where you will need to invest in inventory, good, business operation material, and more – in order to run the business properly.
This can cost a substantial amount of money, depending on the products you sell to customers.
You could consider getting a business loan, if you think it will be necessary to get started.
As well, you will want to have a stock up of inventory, in case the business scales quickly.
Having too much, is always better then not having enough!
Step 6: Setup services you will provide, if necessary.
Some businesses provide services, which generally require less investment. However, they are more difficult to run, and the service has to be of high quality in order for customers to retain and stay loyal for years to come.
This means that you will need to setup high quality services that are capable of taking care of the most needy customers.
Because if the service your family business provides, can take care of the worst customers imaginable, then serving other customers will be much easier for you in comparison.
Step 7: Launch the business!
By following this guide to starting a family business, you’ll be able to launch a potentially profitable business within a few weeks to several months, depending on the industry and type of business you decide on.
Make sure you do your research and due diligence, and that the entire family is onboard with each decision being made.
What Kinds Of Family Business Ideas Are Best?
You should focus on creating a family business that has relatively lower costs, and high profit margin potential.
As well, starting a family business which requires little to no skills, can be a desired kind of business as well.
Complexity of running a certain kind of business should also be taken into consideration.
Finding a family business idea that has all of these different factors involved is going to be difficult and challenging.
This is why you should consider which of these factors are the most, and least important, for your particular family business.
Make sure you weight the pros and cons of the family business models you’re considering, with the skills and abilities of your family.
What Are Some Famous Family Businesses?
It’s always nice to see family businesses that have grown into exceptionally successful companies. You’ll find that even some of the largest companies in the world, have been family business that have grown and scaled successfully.
Here’s a list of some famous family businesses.
- Walmart – The Walton’s family are famous for creating the most well known grocery store chain in the world.
- Chik-Fil-A – This no Sunday service, and debatably the most famous chicken company in the world now, also started as a family craft.
- Ford – No, not Chevy… Ford as started initially as a family business.
- Carnival – The cruise company once started as a smaller family business, that has grown to be worth billions.
- Nike – The largest shoe company in the world, yes, started as a family business.
- FaceBook – We all use it, and the Zuckerberg’s do as well as a family business startup.
Pros And Cons Of Starting A Family Business
Creating a family business can be an amazing experience for yourself and your family members.
But, there can also be some bad experiences felt as a family business starts and scales.
Because of this, we want to make sure that we go through both the pros and cons of starting a family business.
Here is the full list of pros and cons:
Pros Of A Family Business
- Work with the people you care about most
- Build your relationship closer with your family
- Easier people to work with
- Close knit circle of trust between everyone in the business
- Potential for large profit margins
- You go home with the people who run the business
Cons Of A Family Business
- Potential to ruin family relations if the business goes poorly
- Difficulty managing the business if the right family members aren’t in the business
- Conflicting business ideas can move into your personal lives
- Money, family, and business – don’t always work well together.
Successful Family Business Challenges
Yes, there will be some challenges you face by starting a family business.
After you choose the best family business idea for your specific family, and you create the business, running it will generate some problems.
Of course, these problems are concurrent in other businesses that aren’t owned by families, but the family aspect can complicate things more.
Some families work well together and some do not.
If you are going to run a family business, you need to know how to separate three important factors from one another, these are:
- Family Life
- Business Life
Because these 3 things often coincide among one another, and will be some of the most critical aspects of a family business that are discussed and even argued about.
You should make sure every family member gets a fair share and accounting to the business, in proportion to what they contribute to the business.
As well, each family member will need to make sure they also learn how and when to separate these 3 aspects of life from one another.
If this can be accomplished, your family business can thrive.
The Final Word
There are many factors to consider when deciding on which family business idea is the best to start for your family. Once you’ve all agreed on one and start taking steps to launch your business, make sure to spell out each family members role and what is expected of them.
Make sure to spell out the consequences of not fulfilling one’s obligations to the family business as well.
There must be an exit strategy for a family member if they do not do the work required of them, or they just want out.
All family members involved also need to know, that they are not going to be making hoards of money overnight, it is going to take time.
The length of time it takes for any business to become profitable depends on many factors, including the startup costs, the demand for the product, and the ability to connect with potential customers and sell them on the product or service.
We really hope these family business ideas have been extremely helpful to you and your family. If you have any questions, don’t hesitate to post them in the comments section below or just say hello 🙂
Your Friends And Partners
Richard And John Weberg