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Saturday, July 24, 2021

Best Profitable Family Business Ideas That You Can Start Now

Family businesses are a tradition in micro-businesses. A high percentage of entrepreneurs start their businesses with their families. In this post, we will look at some family business ideas that you can start.

What is a family business? How do you define yourself?

The definition of a family business is: a business created and managed by family members. In fact, in Latin America, between 70 and 80% of businesses are family-owned.

There are also large corporations that are family businesses. It is not a matter of size, but that the shares of the business belong to a family. Most of these businesses are distinguished because they bear the founder’s last name. It is a normal phenomenon all over the world.

In terms of size, a family business can start from a couple to 300 to 400 employees, led by family members.

What is the difference between family business ideas and non-family business ideas?

In family businesses, the control of the company is mainly the founder and his relatives. This means that the shares are mostly family, at least 51%. They manage and control the family business.

In the case of non-family businesses, they are controlled by a corporation or are public businesses that are listed on the stock market. Successful family businesses are usually bought by some corporate entity and are no longer family-owned.

How does the family business work?

Initially, the company works with 2 or 3 people, who do all the work. An example would be a mechanical workshop, where the father and 2 children occupy all the business functions: accounting, customer service, sales, marketing, among others.
Basically, in the family business, you have to manage the following areas:

  • Sales and marketing
  • Accounting and finance
  • Human resources
  • Production
  • Technology

Family business examples

Many large companies are family businesses. Some examples of family businesses:

  1. Walmart
  2. Ford
  3. Volkswagen
  4. Bayer
  5. Dell
  6. Auchan
  7. Roche
  8. Mars
  9. Nike
  10. Zara

In some cases, families continue to dominate the picture. In others, part of the company has been sold.

Create family business

To create a family business, it is not enough to have the idea. You have to follow the following steps:

  • Have a clear idea
  • Divide responsibilities among family members
  • Separate home and work
  • Fix economic issues: salaries, tips, etc.
  • Have rules and policies for behavior

A family business is affected by the lack of rules and because problems from home enter the business.

Family business ideas

Beyond specific businesses, I want to cover the sectors in general and propose some forms of family business ideas and tips for the success of the family business.

Food

This is the most traditional turn where we see the participation of the whole family. The most important aspect to consider, from a customer and marketing point of view, is seasoning.

It is not about innovation but about satisfying the customer’s need through the taste and quality of the product. That is the key to success observed in these business ideas kind of family business.

Textile

The sale of clothing or textile products is also a classic of family businesses.
In this type of business, the participation of a family member who understands the consumer or the market niche they are trying to sell is important.

For example, if it were youthful denim jeans, the point of view of the family member who is closest to the consumer who is going to buy needs to be taken into account.

Another important aspect is the sales staff. They must have a relationship (whether in age or gender) with the customer who enters the store.

Timeshare businesses

An ideal business for the family is where any member can participate as a salesperson or offer attention to the business.

That is why we see many family businesses such as grocery stores selling first-hand products or those businesses where you do not need a specialization or knowledge of the product to sell.

Integrated business plan

An aspect little commented on in family businesses is the development of the business plan.

Generally, the dynamic is as follows: the father comes up with a business, they put it on, and the children take care of it when they return from classes.

This modality does not work at the moment. The children prefer to continue their careers to continue the family business.

For this reason, it is important that all those involved participate beforehand in the development of the business plan, contribute ideas, experiences and develop market and financial research together.

Teamwork

There is a lot of talk about teamwork, but it does not come down to reality. Teamwork does not mean that everyone contributes the same amount of energy or does the same activities well.

It is about working together so that the whole work efficiently. For example, while the father can take care of finances, purchases and inventories, the son can provide help with easy tasks such as inventory control or cash control.

Not to measure it in time or effort, but in which tasks the member is more efficient and can contribute more.

Small businesses first

The family business’s vision is the continuation of the first generation to the following of the business, that is, to make it grow over time, which is the family legacy.

It is advisable to start a small business. This means that we will reduce costs to the maximum, by the way, to test the market and family dynamics.

However, I think it is excellent to learn the business from below and understand the tricks and the trade before investing a lot of money or forms of business innovation.

Conflict resolution

A common problem in family businesses is how to resolve conflicts that arise. The fact of firing an employee implies the disintegration of the family. At this point, it is appropriate to create a council (this method is commonly used in large company councils) where each person has a vote and a say in the decision. Any problem should be discussed and a decision made together.

Salaries

At this point, it is convenient to pay salaries as if it were a normal business. Even when the child is paid the minimum wage, it is important since it is a reward for the work invested. Nobody likes to work for free. By paying salaries to everyone, interest is generated to continue the work and continue the business.

Control of finances

Don’t mix your family money with the family business. It is advisable to have two different accounts, to separate family life from work. Another important point of different accounts is the saying, “Do not put good money to bad.” If the business goes bad, it is necessary to fix it with the resources that are had.

If the business fails, it was most likely not a profitable business, and it gives us the necessary lessons to try a new business.

Overview

A successful family business begins with having a joint vision. They talk about where they want to go with the business, what they want to achieve, and what they expect. The business idea in the field of the social and family environment.

This is a question our readers have asked: what about the business idea environment? The social environment affects as follows:

Economy
Politics
Safety

Now, in the family environment, the business idea is affected by the following:

Budget
Family pressure
Intra-family conflicts
Economic pressures
Major changes in the family.

In conclusion, family business ideas are affected by everything that happens within a family and social context.

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