A family business is a business that is majorly owned and mostly run by members of a family. Business owners who want a continuity of their businesses or would like their businesses to stay in their family and owned or managed by their families usually adopt the style of a family business. When they are dead and gone or unable to attend to their businesses, they prefer the business to be owned and managed by their families; usually their children, spouse or siblings to ensure that their business is still active. This article guides you on how to create a family business.
Give roles to family
Tasking your family members with some of the business roles is one way to create a family business. Taking up a role gives them a burden of responsibility and creates a sense of possession. It also gives them a general idea of the business and also specific knowledge of the role given to them. This helps to create in them an interest in the business and makes it easy to shift the role of management to them. You can start with very little roles like management of stock, counter management and handling customers.
Bring business to the table
The best place to introduce your business to your family is at the table, when you are having your dinner, lunch or breakfast. Having a business conversation on a family table is not always the best especially when everyone wants to release stress and have random conversations. On the contrary, it gives you the opportunity to create an interest for your business for your family. Tell them the progress of the business, challenges and any kind of help you may need to ensure maximum growth of the business. They might express interest and may be willing to assist you to solve those problems.
Encourage business related courses
Hiring your immediate family as employees in your business is a good asset to the business especially if they have the expertise and have the qualification to handle the office to which you employ them to. Encouraging your family to pursue educational courses that are needed in your business is thus one way to create a family business. For instance employing your child who has the qualification in business management as the manager of your business is a sure way to establish continuity of your business when you are unavailable.
Capital split
This is for those who are starting a new business and would like the business to be owned by members of the family, including extended family members. The first step is to discuss your business idea with your family, the capital needed and the whole business plan. When an agreement is made, the capital needed can be splitted among the interested parties (wife, children, siblings). Likewise, profits and proceedings from the business will be split among all members.
People hold the notion that family businesses fail due to too much familiarity and rivalry and wouldn’t even venture into that kind of business with their family. It may be true in some cases but some families have also achieved greatly from venturing into family businesses. Examples of such businesses are Walmart, Nike, Samsung Electronics, Norvartis, Dangote Group etc.
You can only achieve a profitable and successful family business if members are able to balance their work and personal family issues.
