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How to Start a Family Business

Starting a family business is a dream for a lot of people. It can bring everyone together, and even the kids can have a role to play in a family-run enterprise. It can give you something to hand down to future generations and it can be a fantastic way of earning money while still being able to spend lots of time with the family. Here are some tips for starting a family business.

Develop aIdea

To create a business, you have to start by coming up with a brilliant idea that is likely to make you money. If you have a job that is easy to turn into your own business, then this could be a good place to start. An accountancy firm, catering business, or animal enterprise can all be set up and run from home. 

If you want to get a break from what you are doing you could decide to tread a different path entirely. Some of the best companies in the world such as McDonald’s or Parabellum Investments started as family concerns. However, both McDonald’s and Parabellum Investments later became global businesses. 

Organise Roles

A family business can bring everyone together but equally, it can drive family members apart. To avoid this, decide who will be a part of the enterprise from the outset. Will you incorporate cousins, siblings, or extended family members, or is this business going to be limited to yourself, your spouse,and your kids?

Draw Up a Contract

Whatever you decide, set out a formal agreement such as a shareholder’s agreement that is legally binding. That way everyone knows where they stand even if the battle lines have been drawn. Don’t forget to update this when family members come of age or retire as there is likely to be some movement over the years. 

Create a Business Plan

A business plan will give you and your family members something to work towards. Outline exactly how you will make money, what goods and services you will offer, and how much money you expect to make from this. As well as bringing the family together it will also give you a useful toolto get your business started as any corporations you are likely to approach for a start-up loan will ask for a copy of your business plan. 

Purchase Everything You Need

Once you have got the money together to start up your company and the legal proceedings have been taken care of you can start the fun part of shopping for everything you need. Having one family member in charge of purchasing and another in charge of accounting can work well as it means that they will have to work together to create harmony.

Evolve

If you want to create a business that lasts for generations you will have to keep changing, evolving, and keeping one eye on the competition. This will help your business stay relevant so pay attention to feedback and continuously improve your company.

These tips will help you on the road to starting your family business. Now all you need to do is put your plans into action.

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