Family Business Ideas that Work and Why
Over the world, if you see, there are many examples of families running successful businesses. Some of the most remarkable examples of family business ideas include:
1) Dr Siegal’s Cookie Diet: A firm specializing in cookie-based diet program started in 1975 and still extremely popular
2) Mars: This Company was founded in 1911, and its current revenue stands at $28 billion
3) Booklocker.com: A completely comprehensive book publishing company
4) SC Johnson & Son: With current turnover at $9 billion this company founded in 1886
5) Perdue: The foundation of this company was laid down in 1920, and its revenue currently is at $4.6 billion
The world of entrepreneurship has many shades. From working completely on your own to hiring a huge team of employees to even making a success story along with your family members, the possibilities are huge. You would have noticed that the success of an entrepreneurial venture depends on some key factors. These include:
- Sharing the entrepreneur’s passion
- Collaborate constructively
- Bring about maximum productivity
Now we all know as an entrepreneur and employer you motivate your team to do all of the above and lot more. But have you ever imagined how wonderful and rewarding it would be if you could include your own family members?
The key point that has worked constructively for all of these family business ideas is the fact that they have all tried to keep the core concept of a successful business or enterprise intact.
1) All of the above-mentioned businesses and many similar ones have made the efforts to recognize the different possibilities and personalities of every family member and celebrate their uniqueness
2) They created well-defined role for every family member, be it a 9 year old boy or the 19-year old daughter ready to leave home
3) Looked for inputs from every family member to create a lasting and sustainable model
4) Bring out the best in every family member through continuous encouragement
5) Do something that the entire family unit feels great about without exception
6) Work at well allocated hours and keep enough free time for the family to enjoy together and help every family member feel rejuvenated.
7) Create a well-specified work area and maintain the sanctity of home and workplace with equal vigor
8) Ensure that the kids do not get ignored despite the family working on an enterprise together
That said what could be some of the best family business ideas that you could pursue? Here is a quick synopsis of some ideas and why they are sure winners.
If food is the central binding force for your family then this no doubt is one of the best family business ideas. You can either look to start a catering business together or open a restaurant. Each family member can contribute in the various aspects of running the firm from cooking to managing books, creating the menu, sourcing raw materials and the like.
There could be clearly demarcated roles for each member and at the same time all of you can sit together and ideate on the best possible options going forward. You can create the menu together, sit and thrash out the differences and work towards constructive brainstorming. Working as a family easily has its advantages in this type of business.
1) First and foremost work allocation is never a problem. You know what each family member’s strong point is and you can distribute responsibilities as per that.
2) There are members of the family who might not be able to contribute actively, but they can invest in the business and act as silent partners
3) Often we talk about the huge difference in the taste palette of every family member. This kind of business is perhaps a wonderful opportunity to celebrate this diversity.
Most importantly the family will stand with you even at times if the business does not follow expected lines or meets with some amount of losses or disappointment. Also in the case of additional financial requirement, it is much simpler to ask from your family members than outsiders or even apply for loans from banks.
If you have realized that there are some food items that are not easily available in your locality or you see the dearth of resourceful entrepreneurs who have worked in the niche sector, it can well be one of the best family business ideas to take forward. Food retailing can be of various types from being a takeaway counter to bringing forth exotic food items like international vegetable and spice mix; the options are many. One of the biggest advantages of this type of business model is while it does not have the problems of owning a restaurant like managing the supply of many low shelf life items; it helps you enjoy the high margins in the food business.
1) When you work as a family, one can easily run the storefront while another looks after the delivery
2) Procurement too does not become your problem alone. You can easily delegate the responsibility to a third person.
3) You can also take advantage of the experiences of your family members staying in different parts of the world to further expand the scope of the product range you offer
4) You do not have to spend a lot in terms of employing delivery personnel. Family members can easily alternate and chip in. This will reduce the input cost and make the business model even more viable for booking longer term profits.
5) Thorough understanding and effective communication is a key requisite and while working with your family members that’s never a problem.
Physical Retail Shop
This is one of the most appropriate family business ideas if your family is the resourceful type and you see the potential of a retail shop making the cut locally. This opens up a huge opportunity to build a constructive business platform that you can look at expanding going forward. Given a large number of family members running such a shop also becomes very convenient with each member chipping in some time.
From choosing the ideal location to drumming up funds to buy the particular shop to even maintaining and securing the overall property, every responsibility of running the shop can be divided uniformly and thereby bring forth a greater degree of cohesive and constructive team effort. The overall idea is to delegate task intelligently and bring about a constructive and progressive flow of work.
The fact that you are working as a family ensures
1) The responsibilities are equally divided
2) Maintaining the storefront can often be tiring and challenging, but when you divide this responsibility into 4-5 family members, it’s almost cakewalk
3) It is very important to maintain the novelty factor in your retail store. This is one of the catalysts that attract the maximum number of clients. When there are some family members who are associated, one can be easily designated for doing all the research while procuring these items could be another person’s responsibility.
4) Even in terms of expansion, working with family makes a lot more business sense. Your family members can easily branch out to nearby locations and open separate branches and reach out to a larger unit of customers.
5) The gradual expansion and diversification of business also enable you to generate more funds towards improving the turnover and increasing the profit margin. It is needless to mention working as a family unit helps it to all remain within the family.
Online Retail Business
Even if you are not ready to invest in a shop, you can always start an online retail shop. Whether you affiliate with an existing e-commerce site or you create your own website, this only enables you to retail products right from the comfort of your living room. When you are working as a family, it means that responsibilities can easily be delegated depending on each family member’s preference and overall aptitude. It becomes necessary to identify each one’s strong point and then work towards getting them to undertake an appropriate responsibility.
This kind of business does not involve a lot of capital, and when you take it up as a family, it easily ensures that you can devote a little corner/room in your house to take forward the business constructively. So many of you working together ensures that no one person is overburdened. One can develop the website while another can look at getting all the stuff required. Additionally, other members can divide other responsibilities like maintaining the finances, planning procurement and the like. It can be one of the best family business ideas because
1) It is an extremely flexible business model and does not necessitate rigid structure
2) This can be an option for even families with access to lesser funding alternatives
3) Creates opportunities for even children to contribute positively. Especially if the parents are not very conversant with computers and technology, the children can easily chip in
4) Allows the opportunity to cater to large cross section of clients despite small operation facilities
5) Given the relatively high-profit margin, it has room for significant growth and expansion possibilities.
6) As there are a quite few of you are dividing responsibilities, it gives you more time to spend with your children. It also gives you more free time to pursue other courses or broaden your horizon of expertise
The fact that it helps every member participate actively makes it one of the best family business ideas.
Another interesting and hugely profitable business opportunity that you can participate as a family is the laundry or the cleaning business. This is one of the best family business ideas because the initial cost is not too huge and this is quite labor intensive. When you work as a family unit, you no doubt can divide the responsibilities and book in additional profit for your family.
This kind of business requires a lot of minute planning, eye for details and a customized working pattern. In this context, the cleaning business as a family unit is a great option. Though not exactly glamorous, it can help you log in great profit and a steady flow of income. After all, we all need to clean our clothes regularly, and most of us prefer getting it done at the laundry to minimize effort. Working as family helps this business model because
1) You do not have to hire a large number of people to look after the various aspects of cleaning
2) You can easily cater to a large number of customers given the strength of people working together
3) You do not have to spend a lot of money in getting fresh gadgets or real estate space. You can easily allocate one corner of your house for the same purpose.
Moreover, when you are working with your family members, the overall productivity is also enhanced to a great extent. This no doubt helps you in serving more and more people in the long run. Also working as a family ensures you do not have to spend too much in promotional costs as well. Your family members can spread out and do self-promotion and even distribute pamphlets door to door depending on the need.
Let’s say you have a hugely talented family. While one person is great at networking, the other churns up beautiful decoration at the drop of a hat. You are all extremely communicative and believe in working together as a team. If that is the case, then event planning could well be one of the best family business ideas for you. From pitching, researching, executing to a smooth flow of events on D-day, you can be an extremely efficient events manager when working with your own family members.
This will ensure that everyone is on the same page and there is no communication lag between the members. Also the fact that you all stay under the same roof means that you can easily exchange ideas and also honestly tell each other if something does not work. It also means every member of the team can work in sync with the rest without depending on any outside uncertainty. The big advantages in this case is
1) It minimizes the overall uncertainty to a large extent
2) It brings down the potential level of miscommunication and misunderstanding to a large extent.
3) The proper execution and cohesive team effort always improves efficiency and overall performance level
4) You effort as a team becomes your greatest brand ambassador and helps spread a good word about your overall superior performance.
5) You have easy access to a plethora of creative, planning skills coupled with absolute resourcefulness to bring the best of output on the platter in one go.
Most importantly working as a family team means your dependence on outsiders is cut down significantly. This means that execution of the event happens smoothly and even if a family member lags behind, the others put in extra effort to help catch up. This might not always happen while using hired help to run your event planning company.
Plus your effort to promote the business also reduces significantly. Let’s assume there are five members in your family and each one gets 5 clients; you suddenly have 20 clients to cater to in one go. It, therefore, makes a lot more business sense as well as creates significantly more extensive opportunity to grow your business. Sustainability of this business model too gets enhanced when it is run by a family unit. The fact is you always have someone to fall back on and never alone to share the turmoil and tension of running a business.
Online Businesses with Proven Business Systems
All the above family business ideas are good, but they have some problems:
- They are not scalable.
- They need constant supervision and management.
- They don’t give you money, time and location freedom.
Sometimes the whole family works full time to manage and maintain a business that is still struggling.
Does it make sense to run and manage such a business and then close it after several years of wasting of time and money?
That is why the online businesses that follow the proven business plans have been created. Learn more: Following a Proven Business Plan Is the Success Key
In fact, that is a key point to consider in whatever option you choose as one of the best family business ideas. The idea that the sword of failure is not dangling on your head alone 24×7 is a major plus point. Whether it is the success of your venture or the disappointment of it not panning out as well as you wanted it to be, you are never alone to deal with it. You can always face this situation constructively as a cohesive family unit. Just like many other occasions, you can always handle these type of situations better as a family.
Additionally, it also frees up a lot of private time as well. You are no longer responsible for the business all alone, and therefore you can work in a lot more constructive manner. There is no scope of fatigue building up in the option that you might look at as the best family business ideas. This is because no one person is responsible. Roles are constantly changed and responsibilities continuously shifted around depending on necessity and need of respective family members. With the fear of failure almost limited to bare minimum, they are also able to perform more efficiently altogether. Learn more: 5 Ways to Support Your Family Business