Ready to start a family-run business? There are a few points to consider before you jump in. First, what would be the best business for your family? Second, what kind of funding will you need to get started? Third, how operating the business impact your family life?
According to Brad Sugars, online writer, you shouldn’t choose a business because its what you already know. Just because you were trained as a hairdresser, you don’t have to open a salon. Also, you shouldn’t pick a business just because you have a passion for it. You may really love shoveling snow, but if you live in southern California, snow shoveling is not a very profitable service. You should make sure that it is a product or service that customers will come back for again and again. It makes more sense to sell to returning customers than it does to spend time, energy and money on getting new customers.
Also, make sure there is a high profit margin. Plenty of businesses promise the cheapest prices and undercut their profit margin. If you chose a product or service that makes a very small profit margin, you’ll be working very hard to keep your business profitable. FInally, build a strong support team because having a great idea without a means of implementing that idea will not make a successful business. If you don’t have the knowledge or ability, find someone who does.
Some small-business owners are lucky enough to have the funds they need to get their business up and running. However, not everyone is. Small business owners often seek what are called microloans. These are loans that are less than $100,000. It seems as though more and more microloans are being approved these days. The professionals at Imperial Advance state that “[in 2013] CRA-reporting lenders made six million small business loans with a total value of $206 billion. Of these six million small loans, 5.5 million were micro business loans valued at $68.5 billion (compared with 4.8 million micro loans valued at $66.4 billion in the previous year).”
Some things to remember when budgeting for your loan include start up costs such as equipment, supplies and advertising. Do not forget that you may have to use some of the loan money to replace your income until the business can become profitable. You will need to make sure that the budget both at home and with the business are balanced.
Balance Home and Business
Family-run businesses can quickly become an every-waking-moment job. It is important to find a balance between the work and your real life. At first the business will most likely take a larger slice of time. Don’t forget to keep fun in your life, though, too. “If you’re working too much, you might miss important family events or milestones. This can leave you feeling left out and might harm relationships with your loved ones” writes the Mayo Clinic.
If you have chosen to start a family-based business, don’t forget there are several things you must do to get the business off to the right start. Choose your business carefully. Find appropriate funding and then budget the funding wisely. Most importantly, maintain a balance between real life and your family’s business. After all, you wanted to start the business to work for and with your family.