These are the five stages of small business growth. Existence: Setting up and beginning to run the business by spreading the news of the business. Survival: The business has shown that it is a workable Read More
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Starting a family business is a great way to generate extra income for the family. However, the process can be overwhelming, especially when no family member has ideas about where to start or how to go about the entire process. Below are tips to help you start a family-owned business.
Determine the Type of Business You Want
When it comes to choosing a family business, everyone might have different ideas. Start by asking each member their views. You can choose a carpet cleaning business, plumbing, or electrical services. Ensure you get everyone involved.
The final decision depends on the skillset among the family members. Ensure you go for a business that everyone can contribute to without struggling. If one family member has better skills than others, they can offer training to make each person comfortable and resourceful.
Create a Business Plan
Once you decide what you want to do, plan how you’re going to do it. In this case, you will need to create a business plan to guide you. Decide how much capital you want to invest, the business location, whether online or physical, the age and sex of your target audience, among other demographics. Below are other areas to consider.
- Define each family member’s role, including schedules when everyone needs to be fully involved in the operations.
- Compensation packages for each member depending on the profits generated. Be open with the compensation structure.
- Schedules when each family member can take annual leave. Ensure each person is comfortable with the assigned dates.
- Define the exit plan for each family member by setting conditions that each should follow before leaving the business.
- Create a succession plan showing business transition should the founders retire, pass on or pass along the business for another opportunity.
Remember, your plan should be on paper to avoid confusion in the future. Ensure everyone agrees and commits to the assigned responsibilities
Set the Ground Rules
Laying down rules will help you create the company culture and set a firm ground for the business. This increases the like hood of running the business smoothly and professionally. Below are some of the ground rules you can set for the business.
- Each family member should keep their personal and work lives separate. Let work issues be solved at work professionally.
- If you have teens who want to join the family business, they should gain experience first from other organizations.
- Get help from professionals who have experience in the same industry. Family members may not be experts in everything.
- The business management or shareholders should treat everyone equally, whether a child, cousin, nephew, sister, or brother.
- Create measures to mitigate potential losses. In this case, you may want to set aside emergency money to take care of future risks.
Put In Your Best
Stay encouraged, especially during the first days or months after the launch when things are often challenging. This is the time when all family members need to hold each other’s hands and put minds together to ensure the business moves on to the next level. It may not be easy but giving up is not the solution.
A lot of small business suffers from lack of management due to the absence of right management team. Strategic planning and management are necessary for any business to last longer in the market. Due to the small budgets and limited staff members, small businesses find it hard to stay side-by-side with the big organizations. The entrepreneurs should focus on learning about the tools that can help them manage their business better. While not all the tools available for automated management are affordable for every small business, a good time researching can provide really good options. Here are some useful tools that every small business needs today.
Every business today needs an online presence that can get well established if there is a website for the business. Small businesses can find hiring a web developer expensive. On the other hand, Wix provides easy to use website builder that one can learn using while creating a website. One can receive endless features to customize their website at affordable prices. Wix helps its clients to build websites from scratch while also providing tools for the right analysis.
MailChimp has been operating for almost two decades to provide affordable email marketing solutions to all types of businesses. They help in creating emails, postcards, landing pages, and more for any business at affordable prices. Users can choose from different email templates to customize their message and send it to their network in simple steps. It can send up to 10,000 emails per month for free and 500,000/1.2 million emails per month in the paid version.
Trello is a great project management software that can help any business in solving high-level planning issues. Trello offers a flexible management tool for free. Businesses can create tasks and track their progress and workflow effectively. The toll is capable of managing files, links, dates, images, and more. It also has paid plan with added features and better storage. Due to its popularity, Trello is integrated with Slack, Google Drive, Dropbox, other platforms.
Slack is a great communication tool that is used by some of the biggest organizations for communication. It is a real-time communicator of the teams that can help them collaborate better. Slack was developed to allow teams to create, discuss, and share ideas as well as files. It also offers tons of features, from creating polls to scheduling meetings, creating cloud storage, and productivity tools. Slack lets its users search for a conversation in easy ways no matter how old the conversation was. It has both free and paid versions.
Freshteam is a great HR tool that helps businesses in hiring and onboarding while managing information for all employees. It is simply the best tool for HR today due to its affordability and online management. It can perform tasks such as posting jobs, screening resumes, sending offer letters, and track the candidates. It is an easy tool to be used by small businesses that do not have the right HR team to manage their employee information.