Family business with minimal investment - pros and cons with opening options and tips

What is a family business?This is an entrepreneurial activity that is founded by relatives belonging to the same family. Family business in terms of size, structure, method of management and concentration of fixed capital can be classified as follows: A small company with less than a dozen employees. This circle usually includes the closest relatives. large holdings. The best example is the family companies in England, the ownership of which is inherited. In Russia, you can most often find family companies that are engaged in trade or small-scale production ( confectionery , bakery ). Family agricultural business. Pros and cons of a family business Benefits of a family business A family business prepares each new member of the family for what is possible, a place of work for a person has already been provided - that is, his future profession is, as it were, outlined. a family business better keeps the secrets of craftsmanship and the new generation does not have to start everything from scratch business partners will not weave intrigues behind their backs and set off unplanned checks (unfortunately, in modern realities this does not always work, but now we are talking about a really friendly family) family business works for unity on the basis of mutually beneficial conditions financial education of children takes place on real examples - schoolchildren and teenagers can earn their first money in a favorable environment and learn to appreciate conscientious work family business contributes to the self-development of each family member - the performance of each individual employee depends on the indicator of the case and his reputation as a whole.

Disadvantages of a family business

Family relationships can be destroyed due to financial misunderstandings, when the project starts to make a profit, it seems to everyone that it was he who invested the most - that is why it is necessary to invite an experienced lawyer at the beginning of the existence of the business model and distribute the roles of startup participants The whole family may end up in debt if the business fails. You can avoid this by refusing to take a bank loan , and use alternative sources of finding funding for a future project It is not uncommon for the reputation and income of other members of the family business to suffer due to the negligence of one representative of the company. There is a discrepancy between the employee and his position. In this case, the main owner of the block of shares must be firm - if the employee does not want to fully fulfill the duties assigned to him, then he is subject to either dismissal or retraining. It is necessary to clearly distinguish between family relationships and business . The founder of the business may lose the authority and respect of other family members. 2 or more people can apply for leadership positions in business. As you can see, the main problems of running a family business lie precisely in the psychology of family relations. Before you start and start a serious business that can bring income with your family, think about whether the team can work as cohesively as in the future, whether the business can have the potential for development, or whether the business will have to be divided with the first income received in a court.

Useful Tips for Starting a Family Business All documents relating to the company must be drawn up in full compliance with the law. It is necessary to provide for such opportunities as divorce, division of the company, features of the purchase and sale of equity shares. The contracts must indicate the amount of wages of each of the employees, draw up a schedule of work and holidays, the level of responsibility, including material. Formalities are important. In order for the business model to become viable and generate income, you need to build a business scheme, adhering to all the rules and regulations. Personal relationships and work are not the same thing. Create 2 separate bank accounts - for company and family accounts. Each employee is an individual, but it is worth adhering to the rules that everyone is equal in the work process and must be held accountable for their actions and poorly done work. the atmosphere will heat up. The categories “ Personal ” and “ Work ” should have strictly defined limits. A family business is possible only if a charismatic leader is at the head of the business, to whom all other employees will obey. The leader must be able to clearly distinguish between work and personal time. In a work environment, you must behave accordingly. He may also be responsible for scheduling holidays and weekends. It is better to give financially responsible positions to blood relatives. It is worth accepting into the team only those relatives with whom good relations are maintained during non-working hours, otherwise a showdown cannot be avoided in a working environment. The team should include only those people whose personal and professional qualities will contribute to the harmonious development of the business. If children do not want to participate in building a family business, it is better to give them freedom of choice. Each team member must do their part of the work. Requests are acceptable, but within reasonable limits. Remember that during working hours it is necessary to observe subordination and treat each other as a colleague, not a relative. Each worker must be paid on time. At the same time, it is necessary to put the movement and distribution of financial flows under strict control. Well, if each family member contributes financially to starting a business, then the incentive to work will be even more pronounced - everyone wants to return and increase capital.

Online business without investment A home business without investment can grow out of a hobby that a person previously engaged in for his own pleasure. Designer pieces from scraps of fabric, bespoke knitwear, slings and baby reins or unique wigwams - all this can be done with your own hands and get paid for it. Creative, unusual ideas are born out of nothing and begin to bring additional income to the family. At home, you can do freelancing and writing articles to order , create your own website or blog , and start monetizing it . A crisis is not a reason to give up and despair. The family will always understand and help, business at home is possible subject to a number of conditions. The founders of family businesses argue that it is necessary to listen to their relatives, employees, not be afraid to promote new innovative ideas, and give room for possible empowerment. Successful business owners appreciate the importance of assigning specific responsibilities. A family business is beneficial in that the leader's enthusiasm can be fueled from outside, when his ideas have already exhausted themselves, and the person is looking for new sources of inspiration. Here, too, family and good friendships help.

"Visit the Next Post -7"