If you decide to open your own family business, then first you will need to carefully study ideas for a family business from scratch. This is necessary because there are a large number of different kinds of “pitfalls” here.
Any successful entrepreneurial activity from scratch is based on trust. Apparently, this is the main reason why family business ideas predominate in the small business sector at the moment.
The benefits of family entrepreneurship from scratch
- Related people are interested in ensuring that their common business idea turns out to be promising, while hired workers pursue exclusively their own goals;
- Each of the employees knows all the positive and negative qualities of their colleagues, because they have known each other for many years;
- Relationships within the team are relaxed and trusting;
- It has been established that a family business at home is more promising than an office one;
- Minimizing the risk of information leakage to competitors.
But, on the other hand, if you try to combine family relationships with partnerships and financial ones, then certain kinds of difficulties may arise, which will naturally affect the deterioration of the family atmosphere.
What is the best way to start a home business from scratch?
If you have zero financial resources, but you nevertheless want to organize a family business at home, then we recommend that you consider the following options for home entrepreneurship from scratch:
- Assembly and disassembly of furniture;
- Joke Shop;
- Courier services.
In addition to the ones presented, there are a huge number of other ideas. The choice of a specific one will depend solely on your preferences, as well as financial capabilities. For example, you can organize food delivery, which, by the way, you can also cook right at home. The female half of the team could do various kinds of housework.
There are various ways of commercial cooperation. But family business, among them, occupies a special position. According to statistics, worldwide family businesses make up about 70% of the total number of companies.
Unfortunately, in the Russian Federation, there are still no legal acts that would regulate the concept of “family business”. But, in practice, the following definition of this type of business has developed:
Carrying out commercial activities with the whole family, in market conditions, which brings profit and various types of income. Moreover, the family includes not only people related by blood, but also other persons who are closely related.
In theory, a family is understood as a circle of persons who are bound by various property and personal non-property rights and the responsibilities arising from them. In this case, the connection is determined by signs of kinship, marriage, adoption and other forms.
Experts from the European Commission have approved a pan-European definition of family business, by which they mean:
The conduct of business by persons who created the company (or acquired its share capital), as well as their adoption of most decisions related to the implementation of commercial activities.
Conducting business, if at the same time the majority of decision-making rights belong to them for direct or indirect reasons.
If at least one family member is involved in the direct management of the company.
If the family's authorized capital is 25% of the rights of the total capital.
Currently, there are many pressing problems associated with running a family business. For example, in Russian legislation there is no provision for providing any tax benefits to people running a family business. One of the disadvantages of a family business is the dissolution of a marriage. If such circumstances exist, it may be endangered. But despite all the disadvantages, there are also advantages to running a family business. For example, in labor legislation (Article 27 of the Labor Code of the Russian Federation) there is an indication that when creating an organization without a share in state property, it is possible to organize joint work in the positions of manager and chief accountant, regardless of the presence of family ties. And this is all regardless of whether there is subordination or control between them.
Other benefits of running a family business include:
No time wasted on building relationships with colleagues;
Guarantee of mutual assistance, as well as assistance and understanding;
Fast management decision making. This advantage is important in conditions of working with market relations. Indeed, in this industry, situations sometimes change dramatically.
Certain hopes are placed on the growing offspring.
Traditionally, family business is usually carried out in the form of a joint stock company, as well as a limited liability company. This is due to the fact that Western practice has given the basis and conviction that, despite any cataclysms, this form of doing business will remain unbreakable. In addition, if any crisis situations arise in the country, such a business has more opportunities to survive, because family ties are characterized by the presence of not only common goals, but also the receipt of common benefits.
One of the most unfortunate forms of running a family business is registering as an individual entrepreneur. The fact is that according to the Civil Code of the Russian Federation (Article 24), an individual entrepreneur bears personal property liability. If the state imposes a penalty for any violations, then, first of all, it will be calculated based on the property of the entrepreneur. That is why JSC and LLC are the most optimal form of running a family business, since the participants of these companies do not bear any property liability for obligations arising from the business.
Family business is a promising area of business activity, because family traditions can lead a business to very great heights.
Family business has several undeniable advantages. It is often created with those people who are completely trusted. In addition, the main profit will remain within the family, and each relative will work for the common good. However, there are also several disadvantages here. Possible problems and failures in the chosen activity can negatively affect the relationship between relatives.
Therefore, having decided to create a family business from scratch, you need to approach this enterprise with the full degree of responsibility and seriousness.
Varieties
Depending on the number of employees involved, a business can be of the following types:
- Small business employing no more than 10 people. Often all employees are immediate family members. Such a business is characterized by the absence of a clearly defined hierarchy, the versatility and interchangeability of each employee.
- A family company is a more professional and serious business compared to the previous option. In such companies there is a clear hierarchy. Each relative is busy in his own field.
- A family corporation is a form of management, usually reminiscent of a joint stock company (?), the main shareholders of which are members of one family. Such corporations are inherited from generation to generation.
Ideas
Success in a family business from scratch depends mainly on the entrepreneurial abilities of family members, a well-chosen niche, the presence of competitors and a correctly established course for development. When choosing an idea and a niche for activity, you should focus on the abilities and personal qualities of each family member.
Below are the most popular and interesting family business ideas from scratch.
- Various online stores through which you can purchase the products you need without leaving your home. For example, these could be stores for creative products, various types of equipment, shoes and clothing, accessories, branded items at discounts, antiques, etc.
- Providing services for creating various websites.
- Providing translation services.
- Organization of special events: birthdays, corporate parties, weddings, name days, memorable dates, etc.
- or a small hotel with a cozy homely atmosphere ().
- Opening of a gastronomic establishment: cafe, restaurant, pizzeria, bakery, dumpling shop, coffee shop (), etc.
- Providing various types of services: repairs, cleaning, landscaping, courier delivery, storage of items, etc.
- A private kindergarten or institution where children can come and engage in creativity, play, etc.
- Farming.
- Production of original furniture or interior items according to our own design.
- Providing information services.
- Organization of various trainings and seminars.
- Making individual gifts.
Where to start?
To organize a family business from scratch, it is first important to choose an area of activity. To do this, you need to find out and analyze the following information: what abilities each family member has, in what area he is talented and competent. Based on this data, you should analyze ideas and select several of the most acceptable options in which each relative could use their abilities.
It is worth noting that there are several areas of activity that are prohibited by law for starting a business. Among them:
- Production and sale of alcoholic products.
- Production of medicines and medical supplies.
- Production of pyrotechnics and weapons.
- And also.
- Activities on the securities market.
- Providing private security services.
After determining the direction, an analysis of the specific market should be carried out regarding the prospects and competitiveness of the chosen area. It is worth discussing first how profits will be distributed among relatives.
An important point in organizing a business from scratch is a well-written business plan, which should highlight the following points:
- Definition of a specific activity.
- Scope of work performed.
- Business development strategy.
- Determining the amount of financial investments required for the development of a family business.
- Assigning a certain type of occupation to each family member.
- Identification of the target group of people for whom the business is oriented.
Any business, regardless of the area and the chosen idea, is almost impossible to promote without investment. Its creation and further development requires certain financial resources. If you do not have the required amount of money, then you should contact one of the commercial banks to get a loan.
After receiving the required amount of money, the procedure for registering the created company in the state register should be carried out. Further, depending on the chosen area, you may need premises or special equipment. One of the most important aspects is advertising. To implement it, it is more advisable to turn to professionals.
- It is important to initially establish clear boundaries separating family and business relationships.
- For each relative involved, their responsibilities must be determined.
- Family business, like other types of business, requires a lot of time.
- A clear business management and development plan must be drawn up.
- To successfully run a family business, it is necessary to bring in experience from outside: read relevant literature, analyze, study competitors, if possible attend relevant trainings and constantly develop.
The myth about the unprofitability of farming
One of the most interesting ideas for a family business from scratch is organizing your own farm. Many, when considering various ideas, immediately discard this option, considering it unpromising and unprofitable. However, such an assumption is erroneous. Producers of agricultural products today receive quite good income. However, profit from farming can only be obtained if you properly equip your production and are not lazy to work.
It is quite easy to organize such a company. To do this, you just need to choose a place, register your enterprise and then enter the appropriate market with your own products. Farming includes livestock raising, poultry farming, crop growing and the production of certain food products from produced raw materials (for example, sausages, smoked meats, jam, etc.).
It should be noted that environmentally friendly products are especially in demand and relevant in the food market today. Therefore, a good income with competent production of such products is guaranteed.
In this article we will talk to you about family business and consider the best family business ideas, currently relevant.
In many developed countries, running a family business has already become a tradition passed down from generation to generation. In our country it is less widespread, however, for many married couples this method of earning money is their main income.
Advantages of a family business.
Let's look at what a family business is. This is a kind of entrepreneurial activity that is jointly carried out by two or more members of the same family. It can be registered in the name of one of them, but all business is conducted jointly, or each family member is assigned their own role in the business. Let's look at the main advantages of a family business.
– Running a family business is easier than running a business alone;
– A family business allows husband and wife to equally shape;
– Family business allows you to introduce children to entrepreneurial activity from an early age and develop their skills;
– Running a small joint business allows you to save on hired labor;
– A family business brings spouses together, because they work for a common result.
Ideas for family business.
Let's consider the most popular areas and ideas for business in relation to its running by a married couple or three or more members of the same family.
Idea 1. Family business in trade. It is no exaggeration to say that this is the most common and popular idea for a family business. The family opens a small shop or retail outlet, and both family members take turns trading there. Or, for example, the husband can take on the purchasing and delivery of goods, and the wife can take on the functions of a distributor. When certain circumstances occur, they can replace each other. This kind of family business is run by a very large number of families around the world. Of course, recently competition here has become increasingly intense, and profitability has been decreasing more and more, but, in any case, it is quite possible to earn a family’s living in this way.
Idea 2. Family business in the service sector. Such family business ideas are used less frequently, since more often than not it is no longer strictly family-owned: most areas simply require more than 2 people, so in any case you have to hire additional employees. However, a husband and wife can still manage and work in a business together. The most common options for organizing a family business in the service sector are creating mini-hotels, opening cafes or bars, organizing entertainment attractions for children, etc.
Idea 3. Family business in production. A family business can also be started in the manufacturing sector, but if you limit it to the family circle, it is clear that it should be something simple that does not require large scale and costs. For example, this could be the production of souvenirs, breeding of pets or plants, the production of any interior items or handmade jewelry, etc. Such ideas for a family business are suitable for married couples in which both spouses are creative people who have good abilities to create something valuable and in demand with their own hands.
Idea 4. Family business on the Internet. As you know, today it is one of the most promising areas for developing your own business. And you can also find ideas for a family business in it. For example, together: the husband will be involved in programming and search engine promotion, and the wife will be involved in writing articles for the site. It could also be an online store, an online service or other areas of e-commerce, in which each spouse will take on a certain part of the work.
Idea 5. Family business in agriculture. And finally, I would like to separately consider it as an idea for a family business, since this is precisely one of those options that is primarily used as a family business. Moreover, in this type of activity not only husband and wife, but also minor and adult children can play an important role; there is work for everyone there. A farming business is suitable for those families who gravitate towards life in the countryside, away from the bustle of the city.
I've looked at the best family business ideas from a general perspective. Many of them are discussed on the website in more detail - follow the links in the article and find out the details of those options for starting a joint business that interest you the most.
I wish your family business to develop successfully and bring not only material, but also moral satisfaction. See you in new publications!
Many types of successful family businesses can be successfully organized if you approach the issue correctly. Some people believe that relatives are reliable business partners who can be trusted. But the other side is that it is necessary to clearly distinguish between family and business, otherwise you can ruin family relationships and be left without profit.
Advantages and disadvantages of family business
Many businesses that were once founded by members of the same family are developing and thriving. But it can turn out exactly the opposite. Before deciding to organize a joint business, you need to weigh the pros and cons.
The advantages of a common family business include:
- Trust comes first. If trust and mutual understanding reign in the family, it means that it is much easier for relatives to transfer communication to a business level. It is difficult to trust a stranger as much as a relative.
- If each family member contributes equal shares of his financial savings, then he will definitely work tirelessly to return the investment and make a good profit. This, first of all, leads to the stabilization of the enterprise in the market.
- A clear advantage of a family business is the start-up capital. It is much easier to open a small family business in which several people have invested their money. It is more difficult to collect the required amount alone.
But there is another side to the medal, which also cannot be ignored. In addition to the advantages, a family business also has disadvantages:
- It is not always easy to come to an agreement with relatives. It is difficult to point out their shortcomings or incompetence; this can provoke a serious quarrel and negatively affect the organization of the work process. It is much easier to present something to an outsider who works under an employment contract.
- The second, no less important, disadvantage of a family business is that everyone wants to take a leadership position and individually manage the enterprise. This is a rather complex issue that is best resolved at the planning stage, otherwise the whole business may collapse. The issue of inheritance of a common business also needs to be legally formalized in advance.
- Not all relatives are generalists. Quickly learning a new business and successfully applying knowledge in practice requires a lot of time, and prompt action is the first key to success. It is easier to hire an employee who has education and work experience. It is unlikely that in one family there will immediately be a team of professionals who can effectively work in several areas at the same time.
- It is necessary to differentiate between work and personal relationships. In no case should family relationships influence the organization of work activities. Each employee has certain job responsibilities that are not related to home ones. To prevent a family business from becoming a bone of contention, you need to discuss all possible situations within the family circle before opening a business.
How to start a business successfully
The planning stage is the most important for any endeavor. Therefore, before starting a new business, you need to find out what kind of business all family members can do. That is, in what work process each relative will be involved. This should be done based on personal experience, professional and creative abilities, education and work experience.
Business ideas for families
To establish a family business, you do not need to immediately plan a global enterprise that will bring unrealistic profits. It is better to start small and gradually increase the pace of development. Here are the types of family businesses that could get you started.
Sales
The most popular area today. Indeed, with a small investment you can easily start a fairly profitable business - a store or a trading post. The direction can be different: food, shoes or clothing, books and stationery. When choosing a direction, everything depends on the demand of the population and the number of competitors. Rent a small room, create an unusual design in it, decide on work equipment and the product itself, advertise the outlet in a high-quality manner - this is easy to do with a properly organized approach.
Services
You need to think about what family members know and can do. Based on this, you can open a business in the service sector. There are many business ideas. For example, a car service or car wash, a cleaning company for cleaning houses and offices, a tailoring or shoe repair shop. In general, it all depends on the abilities of relatives.
Agriculture
This does not mean at all that you need to sow hectares of land with grain and maintain an entire pig farm. You can start growing herbs or flowers, breeding fish or snails. In this case, you need to take care to immediately find sales points. But each family member does not need to master complex professions; it is enough to love nature and approach work with special responsibility.
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