Starting a business on your own can be a huge step towards a bright future, but can also be a great challenge. When starting a business as a family, the challenge falls on every member. However, there are many positives when creating a family business such as working for yourself, giving a greater opportunity to your family members, and passing down a business and legacy for future generations to come. Starting a family business takes hard work and dedication, but these tips can help the beginnings be a little bit easier:
Create a Plan
A business plan is the cornerstone of a business––especially for one that is family-owned and operated. When creating the business plan for your small business, focus on the roles of each family member, salary and hourly wage, ownership stakes, an exit plan, and a succession plan. It’s imperative that each family member that is an employee understands how compensation works and whether or not they have ownership stakes in the business. It’s also important to determine what happens to each family member if they choose to leave the business and who the business goes to once the founders retire.
Make the Rules
To run a successful family business, there need to be rules and regulations set up before opening. By determining the company culture early on, there is a better chance that the business will run more smoothly. Establish how you will keep your business and personal lives separate, the duties and responsibilities of each family member, whether or not to hire outside help, and how to ensure that each family member is treated equally. Create these rules before opening up for business and you’ll have a much stronger foundation to work from.
Come Together as a Family
While it’s essential that business and personal lives should remain separate, it’s also important to remain strong as a family. Ensure that every member is committed to the business. What makes a family-owned business so special is the togetherness and legacy it creates. When business decisions need to be made, come together as a family to make them. To ensure success, every family member needs to be on board and committed to the business lasting for generations to come.
This article was originally published on BarryKornfeld.com