Ever thought about breaking free from the office and launching family business? This is a fantastic idea for anyone who wants to contribute to the U.S. economy and actually enjoys their profession. With some tips, setting up a successful family-owned business is entirely feasible.
What is a Family Business?
A commercial organization that is owned and operated by a family is a recipe for success, if you take the right steps to launch the business, of course. Researching and planning are two key factors to ensure your company does not fail. Without this, understanding your target audience will be a tricky task and since your audience will (hopefully) translate to customers, you simply must take the time to prepare.
Did you know that family-run businesses contribute as much as $5.9 trillion to the U.S. economy? Not only this, but family businesses account for 64% of U.S. gross domestic product, The great thing about operating a business with relatives is that your company can evolve throughout generations, allowing for expansion and never-ending opportunities.
The Most Successful Family Businesses in the World
Although it is important to pay close attention to your competitors, it’s also beneficial to gain inspiration from them. The following family businesses hit the jackpot by founding their business with industry mastery, passion and a lucrative business plan.
Novartis - This health care company was launched by the Sandoz family in Switzerland and it is worth $279 billion. Since its inception in 1996, Novartis has gained global recognition as one of the biggest drug makers on the planet. The company’s biggest shareholder is the Sandoz Family Foundation.
Walmart - Approximately half of Walmart is owned by the Walton Family, who have managed to build a family business in the consumer staples industry with a net worth of $241 billion. The five heirs, sister Alice, sister-in-law Christy, brothers Jim and Rob Walton, and cousins Nancy Walton Laurie and Ann Walton Kroenke are some of the richest people in the world.
Facebook - An information technology company with a net worth of $225 billion, this social media platform is a tool you should be using when launching a business with your kids. Mark Zuckerberg is the founder and he gradually introduced his sister and father into the business.
Tips for a Victorious Family Business Launch
I have compiled a list of marketing tips that you should take into account before starting a business with your kids. By integrating the following 7 tips into your startup, the family-owned business will stand a good chance at succeeding in a swelling market:
Develop a Profitable Business Plan - What can you offer that nobody else can? Try to avoid launching a family business in a saturated market with well-established brands, as it will be a struggle to outshine these long-standing corporations. In order to develop a profitable business plan, market research is essential. This will teach you about what is selling and what is not.
Establish Boundaries at the Beginning - Family arguments are pretty normal for most families, but don’t let this disrupt your business with the kids. Sit down with all of the family members who plan on co-founding the company with you and establish a set of rules that everyone must abide by.
Delegate Roles and Responsibilities - The good thing about starting a business with loved ones is that you may not have to hire anybody else at all! Prior to the launch, decide who will be in charge of customer service, accounting, stock, etc.
Arrange Weekly Meetings - Arguments may possibly surface during times when you experience business-related pressure, whether it is related to marketing or updating the stock inventory. Diffuse any heated situations by arranging weekly meetings and talking things through. This is also beneficial for idea-sharing.
Treat Family Members Fairly - Just because one member of the family is younger than another, this doesn’t mean that he or she should be treated differently. A healthy working environment will reflect in the service you provide to customers, so take it seriously.
Tap Into Technology and Social Media - A broad spectrum of tools can be utilized to maximize return on investment (ROI) when launching a business with your kids, such as Trello, Smartsheet and Asana. Don’t forget to use social media sites like Instagram and Facebook to promote company content on a daily basis!
Use Video to Entice Customers and Promote the Brand - Did you know that video marketing is taking over all other types of marketing? Highly effective and captivating video explainers and content like those created by squareship, are a smart way to tell customers about your family business and encourage them to become a loyal customer.
Startup Tools Required to Launch a Business with Your Kids
The process of preparing for a business launch and actually operating a business can be made much easier if you utilize specific startup tools. I highly recommend using tools such as Pipedrive, Google Docs, Buffer, Google Analytics and Skype. Don't underestimate the importance of good communication, not only with fellow family members but also, your customers!