Going into a business can be exciting and difficult, especially when you do it alone. However, having someone with you on your business journey, e.g., a family member, can make a lot of difference. So, here are some of the best family business ideas you should consider.
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Introduction to Best Family Business Ideas
A family business is a business owned, managed, and operated by an active family member related by blood, marriage, or adoption.
Also, the family business could take different forms/models.
For instance, it could be owned, controlled, and managed by family members.
More so, the family business could be owned by the family but managed by one family member.
Alternatively, it could be a business model where the family members own a larger part of the business shares.
In this case, such family members can influence the business plans and strategies.
Specifically, some things differentiate a family business from other forms of business.
Owned and Managed By Family Members
A family business comprises the same family member that runs and owns the business.
Roles and ranks in the family business are assigned based on position in the family.
Power and Control
The family has power and control over the business.
This is because they own the majority share in the business.
Also, they have the top positions in the company.
Mutual Interest and Trust
All family members in the business have mutual trust in each other and share the same interest.
This is because they come from the same origin.
Likewise, they share similar values, ethics, and business orientation.
Trans-generational (It Transcends Generations)
Family business ownership and management transcends generations.
As such, the leadership and management of the business pass on from one generation to another.
Why Family Business? – Family Business Ideas
Here are the benefits of starting and running a family business.
Longevity In Leadership/Stability
This is one of the distinct benefits of family-run businesses.
Leadership in a family business is not changed as often as you’ll find in the corporate world.
Instead, it takes the incapacitation or retirement of the incumbent leader to appoint another leader.
Due to this, there’s a lot of stability in the family business.
High Level Of Commitment
Everyone in the family business shows a high commitment towards work and business growth.
This is because of the mutual interest between all parties actively involved in the business.
Unlike the non-family business that plans for the next quarter, the family business plans for the future.
They set their business plans for years, even decades and generations to come.
Overall, they make long-term plans to keep the business legacy growing from one generation to another.
The cost of running a business can be a heavy burden on its owners/shareholders, especially in challenging times, e.g., a global recession.
In these times, it could be hard to keep the business afloat and meet up with expenses.
However, this is not the case with most family businesses.
It is easy for the family business to stay afloat when such challenges occur.
This is because the family members are willing to contribute their finances to get the business up and running once again.
Even more, some are most times willing to forego their wages/dividends temporarily until the business gets back up.
Overall, due to this shared sense of responsibilities associated with most family businesses, it’s easier for them to overcome financial difficulties.
Minimal Racial or Cross-Cultural Conflict
The cross-cultural or racial conflict associated with a diverse organization is non-existent in a family business.
This is because family members share a stronger bond.
Even in the event of a conflict between family members in the business, it is quickly resolved to maintain the relationship.
Regardless of how nice these benefits are, family-run businesses have some downsides.
Downsides Of Family-Run Businesses- Family Business Ideas
Lack Of Proper Structure
Family businesses sometimes lack the proper structure befitting an organization.
It causes disregard for business principles, rules, and regulations guiding the organization.
This may eventually lead to failure in the family business.
Danger Of Favoritism And Nepotism
Family businesses are more at risk of being affected by this.
Most times, you’ll find that certain unqualified family members are promoted or given leadership roles even when they’re are incompetent for the role (nepotism).
This also could lead to business failure because incompetent individuals are put in charge of sensitive aspects of the business.
Family businesses are also prone to unhealthy rivalry.
This could be a rivalry between family members yearning to take charge of the business.
This happens especially when there’s no clear succession/transfer of leadership plan put in place.
All in all, we’ve examined the benefits and drawbacks of family-run businesses.
However, one thing is clear.
The benefits outweigh the downsides.
Future Relevance Of Family Businesses
- Walmart owned by the Walton family in the USA.
- Berkshire Hathaway owned by the Buffet family in the USA.
- Hyundai owned by the South Korean Chung family.
- Samsung Group owned by the Lee Family – a South Korean family.
- BMW owned by the Quandt family in Germany.
- Toyota Group owned by the Toyota family in Japan.
These are just a few examples of successful family businesses to give insight into the success rate of family-run businesses.
An online survey was conducted across 26 European countries with 1500 questionnaires covering the topic of family businesses.
This study confirms the relevance of family businesses globally.
It reveals that family businesses have been in existence for more than a century.
Even with the bad economy and recent, family businesses continue to thrive.
Likewise, family businesses are popular globally.
This is because they play an important role in the global economy.
Also, they are a key source of employment in the United Kingdom.
About 12.2 million people work in the family business in the United Kingdom.
Overall, family businesses show a more positive outlook growth rate.
Lastly, it is believed that family businesses account for 70% of the global GDP and 60% of global employment.
13 Best Family Business Ideas
1. Manufacturing Products – Best Family Business Ideas
Product manufacturing is one of the ideas of best family business ideas.
It focuses on the production and distribution of goods to the market.
It is also the processing of raw materials or unfinished goods into finished goods.
Here, some parts of the family members can handle the production sector of the goods while others handle the shipping and distribution.
To begin this type of business;
- You should choose a niche.
- You should first decide on the type of goods you want to produce. It could be toys, cosmetics, shoes, bags, sunglasses, cars, bicycles, etc.
- You also need to get the business registered. This is because it will prove the reliability of your business.
- You will also need to get the necessary equipment required for the business.
- Also, it is important to create a brand name and logo for the business.
- Another thing is that you need to create a website and social media account to promote the business/build an online presence.
- Lastly, this is a capital-intensive business. So, you will also need to invest in this type of business.
2. Farming and Plant Nursery
This is also another excellent family business idea.
Farming and plant nursery is a business idea whereby plants are grown for transplanting and used for sale.
The plants could be trees, bulb crops, fruit plants, vegetables, etc.
The great thing about this business is that you can start planting in your family garden just around your home.
So, as the business grows and expands, you can move to an open space to meet the demands of your large customer base.
You can also create an online presence for this business by taking and sharing content around your business on your website or social media account.
This will help you reach your targeted audience.
3. Teaching/Tutoring Service
This is another great family business idea.
Do you have academics in your family with extensive knowledge of specific subject areas?
Do you all have the passion, patience, and skills to guide others in different subject areas?
If yes, then this is one business idea that will be excellent for the family.
The family could set up a firm that specializes in teaching people experiencing difficulties in various fields of knowledge.
These could be languages, special certificate examinations/tests, or specific school subjects.
One good thing about this business is that each family member can focus on his/her specific areas of strength/interest.
However, this business requires tutors or teachers to be highly competent and knowledgeable in their chosen field.
Also, you might need to register the business and get the required licenses.
Lastly, you can start this business in a spare part of the house and get an office space later as it expands.
4. Crafting- Best Family Business Ideas
Do you have a flair for art?
Do you have the crafting skills to design nice objects with your hands?
Then, you should explore this business idea.
You can design beautiful objects with your hand and tools using woods or iron steel.
However, you’ll need to create a unique brand name for this type of business.
You’ll also need a defined target market for your created designs.
5. Family Resutrant- Best Family Business Ideas
Cooking is an example of the best family business ideas.
As a family who enjoys cooking delicacies and trying out new recipes, this could be the perfect business idea for you.
You can open a small restaurant where you can share your family’s secret recipes with your target customers.
Also, you can create a website, and social media account to advertise your business and get more patronage.
It is also important to have a unique business name and logo.
Lastly, you’ll also need to register your business with the appropriate office.
6. Children Day Care Service- Best Family Business Ideas
Caring for children is also another excellent family business idea.
For a person that loves and cares for children, you can consider this business idea.
It is alright if you run the child care business in your home for a start.
You can later get an appropriate space as it expands.
This business idea will fetch you money as people will be willing to leave their kids in your care.
However, you may need to register your business with the appropriate offices and get the required licenses to get started.
Finally, you also need to be certain that your environment is legally acceptable for this type of business.
7. Real Estate Business
Real estate is also one of the best family business ideas.
Being a real estate agent or investing in it is a popular family business.
This type of business idea can turn into a generational business.
The previous generation will invest their capital to purchase lands and other properties while the succeeding generations maintain the properties by renovating.
8. Cleaning Agency – Best Family Business Ideas
You can start a family business on cleaning if you do not mind the stress attached to it.
Fortunately, modern technology has made this business less stressful by providing different equipment that makes the tasks easy.
All you need to get are the necessary equipment for the smooth running of the business.
Also, it will help if you have a unique name, brand, and logo for the business.
It is also important to get your business registered for credibility.
Lastly, your target audience could be residential homes, offices, or religious structures.
9. Events Planning & Management- Best Family Business Ideas
Events planning and management is another lucrative family business.
Some family members may have a unique talent for organizing parties.
Others may possess unique artistic skills like designing an invitation card.
More so, some may have a way with people.
Combining all these talents could help you set up a successful events management/planning business.
You could specialize in organizing corporate or social events like; picnics, school soccer banquets, weddings, birthdays, and anniversaries.
10. Car Redesigning/ Auto Repair
This is also one of the best family business ideas.
Starting this business with your family can be satisfying and rewarding.
This is because you get to work together in the same field of interest- doing what you love.
More so, this business can be passed down from one generation to the other.
For this business to work, some family members could be in charge of the car redesign/detailing while others will handle the auto repair.
11. Waste Removal/Disposal- Best Family Business Ideas
Waste removal is another example of the best family business ideas.
This business requires the collection of waste products and fairly used materials.
These fairly used materials can be refurbished and resold at a higher price.
Also, it is less capital intensive and easy to start.
Often, people need to dispose of waste- old or abandoned items either in the home or office.
Your ideal clients will be real estate agents who need to move out old furniture for their new customers or homeowners looking to renovate their homes.
Above all, register your business for credibility.
Also, create a unique and catchy name for your business.
Overall, you could designate specific assignments to each family member so the business runs smoothly.
Baking is another example of the best family business ideas, especially if you and your family love baking.
Then you can turn it into a baking business.
It is not new that everyone loves freshly baked pastries.
So, it will not be difficult to find customers for this type of business as long as your pastries are delicious.
You could specialize in baking a specific type of pastries such as; cakes, bread loaves, donuts, among others.
As usual, you’ll need a space/location for your business.
You’ll also need a unique business name and a platform to promote your business.
13. Jewelry Production- Best Family Business Ideas
The demand for jewelry hasn’t diminished over time.
Instead, as new designs continue to come out, the demand grows.
This will be a profitable family business if your family possesses the artistic skills required to make beautiful jewelry and the marketing strategy to sell the goods.
Overall, some family members can be in charge of creating the designs for the jewelry.
Others can be in charge of the production and distribution of the jewelry.
Family Business Success Tips
Indeed like all businesses, family businesses fail also.
However, you can reduce the chances of your family business failing by following these simple tips.
Set Clear Boundaries
This is often an overlooked factor for success in most family businesses, probably due to the existing relationship.
Due to the closeness between families, it is often advisable to set boundaries.
So, set clear boundaries that distinguish personal/family life and the business.
For instance, it could be no discussing family matters at work and vice versa.
Have Clearly Defined Roles
This is what it means to have a proper business structure where everyone understands their role in the business.
This way, you can avoid confusion, strife, and disorganization in the establishment.
Create A Clear Succession Plan
If you want to avoid strife, conflict, rivalry, and nepotism in your family-run business, then you’ll have to do this from the onset.
Create a succession plan and ensure that everyone understands this succession plan.
This will help to curb rivalry and disputes in the business.
Have An Effective Business Plan/Model
Besides having a business idea and skills, you also need a clearly defined plan.
It should be a plan that shows how you intend to run the business, what you intend to achieve in the business, how you intend to achieve it, and future projection.
Also, you’ll need to create a business model showing how you intend to capture your market with your products and services.
Overall, all these should be executed with your niche/target market in mind.
Have An Effective Marketing Plan/Strategies
A business that doesn’t make sales is doomed to fail.
Also, without a marketing plan/strategy, you can’t make sales.
So, it’s also good to have a definite marketing plan/strategy.
If you can’t handle this aspect yourself, don’t hesitate to bring in professionals.
Conclusion On The Best Family Business Ideas
Owning a family business can be fulfilling.
It brings you closer to your loved ones and helps you earn extra income from the business.
Every idea listed above is suitable for any family that wants to start a family business.
In all, starting a business requires sacrifices, patience, tolerance, and hard work to grow.
So, pick any business idea that suits you, get started, and put in the work to see the business grow.