Family business – where to start and what direction to choose?
“One head is good, but two is better” – quite such a proverb can be applied to those who decide to go into business, but not alone, but as a whole family contract. This approach to business has its advantages – there are no strangers, at the initial stage, you can significantly save non-hired personnel, and so on.
Next, we’ll talk with you about what a family business is, which one is better to open, and what you generally need to consider before starting your family business.
What is a family business?
Of course, one can resort to official economic formulations, but let’s explain everything in simple terms. So, a family business is the type of entrepreneurial activity in which only relatives are involved, and there are practically no third-party people.
It should be noted that this type of entrepreneurial activity is most common in the United States – most of the farms have a “family adventure” and often this type of work is passed on from generation to generation.
Family business options
You can create a small bakery and run a business in it for several decades in a row, or you can develop and grow into a whole family corporation – as you like.
There are the following types of the family business:
- Small business – no more than 10 people, often they are all relatives among themselves, third-party staff or not at all, or 1-2 people as assistants or even partners.
- A family company – there is already a whole hierarchy here. In this case, we are no longer talking about a small type of entrepreneurial activity, and each relative often works in his own specific area.
- A family corporation – this is the type of business that is passed down from generation to generation, the shareholders of such a society are family members.
What family business can you open? Let’s take a look at the top ideas below.
Best Small Family Business Ideas
Choosing an idea is the most important step in running a business, and it is better to make this decision together, as we are talking about a family business. Previously, you also need to conduct a market analysis, competitor analysis, draw up a business plan with calculations and the following sections:
- Definition of the specific activities of the family business.
- Development strategy.
- The scope of work performed.
- Starting investments.
- Definition of the target audience.
- Determination of distribution channels for products.
In addition, do not forget about documenting your business – since we are talking about several employees, and maybe even co-founders, it is better to register an LLC right away.
Family business in the service industry
The provision of services is always a relevant idea for a business, especially a family one. So, the following areas will be promising and with good profit:
- Small hotel or hostel. It will be even more interesting if you live in a resort town or historical area.
- Organization of holidays – you can make an agency for children’s parties, or weddings and other celebrations for adults.
- Legal services , but this is only if one of you is a professional lawyer.
- Private kindergarten – such an institution will require a license, a lot of permits, but at the same time it is in demand.
- Recruitment agency.
- Repair of apartments and offices, and if there is a professional designer, then you can provide comprehensive services for interior decoration.
- Advertising agency.
It goes without saying that this is not a complete list of services. You can come up with something of your own that is not yet on the market and it will be in demand.
Family business in trade
Trade is also a promising area for the family business, the most popular areas are:
- Food trade.
- Trade in household chemicals and household goods.
- Trade in clothing and footwear.
- Trade in building materials.
- Second hand trade.
- Sale of furniture, home accessories.
It is also a good idea to open your own small bakery and a shop with it – fresh bread and flour products are always in demand among the population.
Family catering business
This is one of the best small family business options. Of course, it is not always profitable to open a large restaurant from the start, especially if there is no experience in this direction of entrepreneurship, but even a businessman without experience can do small food outlets:
- Sushi bar.
Over time, you can open a whole network of such establishments under your own brand. And who knows, perhaps after a while, the franchise of your business will be in demand not only in the territory of the Russian Federation.
Family business in production
This direction is more difficult, but everything is within the power of a good family contract. So, good ideas for a family business would be the following:
- Manufacture of furniture, but here we are talking more about something non-standard, to order.
- Preparation of bakery products.
- Door manufacturing.
- Production of interior items.
- Window production.
- Manufacture and installation of stretch ceilings.
It goes without saying that such lines of business are already somewhat more complicated, since not only special skills are required, but also the purchase of equipment, materials, as well as equipping the industrial premises. In a word, start-up costs also increase significantly.
Family business in agriculture
If you have a house in the countryside or a semblance of a summer residence, and the bustle of the city is fed up, then the idea of a family business in the direction of agriculture is almost ideal. Moreover, there are more than enough directions here:
- Goose farm.
- Raising chickens for sale and chicken eggs.
- Fish farm.
- Cultivation of cattle, pigs, sheep.
- Growing vegetables, fruits, herbs.
- Growing flowers for sale.
Over time, you can equip a whole farm with several directions.
What is the best family business to open? There is no single answer here, since it all depends on what kind of specialists you have in your family and what you would like to do in general. Therefore, if you decide to select ideas for a family business, it is better to resolve this issue together – so to speak, at a family council.