Tips for Starting a Family Business

Starting a family business can be a challenging and rewarding experience. A little patience and lots of planning will have you well on your way to success. Here are 6 tips to help you get started:

1. Structure is key. 

Whether you plan to work with parents, siblings or distant relatives, it is essential that everyone knows who is boss. Take some time early on in the planning phase to establish who the boss will be and delegate obligations to each person. Once all of the responsibilities have been assigned, be sure that each individual is compensated accordingly. 

2. Create a professional environment. 

Creating a business-like atmosphere is another key step towards starting a successful family business. Even though the family members are familiar with each other, maintaining a professional environment is essential. To achieve this, consider establishing workplace rules for things like attendance and dress code. 

3. Have a Clear Vision

It is so important to strive to understand the big picture with your family business and help everyone in the family business understand it. Your vision should be in alignment with what your family is passionate about. A perfect example of this is Brothers Plumbing from Toronto. They began as a small plumbing service 51 years ago and didn't have an abundance of resources, but they knew they loved handiwork and they loved customer satisfaction. Their vision became providing quality plumbing service to homes and businesses with the end goal of feeling the satisfaction of everyone they work with. Five decades later, they are still a relevant family plumbing business in Toronto.

4. Never take business home. 

Working closely with family can be difficult at times. Minor squabbles and disagreements from work often spill over into personal time. Not only can this be very stressful, but it may leave family members who do not work for the business feeling a little left out. To reduce these conflicts, always leave business issues at the office. This skill may take some time to master, but it can be a key part of maintaining a balanced work and family life.

5. Plan, plan, plan. 

Many small businesses are forced to close their doors within their first two years of operation. Often times, this is the result of poor planning. A strong business plan can help ensure that your family business is built to last. If you are not sure where to begin, consider following the footsteps of other famous family businesses like Walmart, Mars and Comcast. Although they each started small, they eventually grew into industry leading multi-million dollar industries. 

6. Always have an exit strategy. 

Before starting a family business, you will need to consider an exit strategy. This is a plan that allows you to exit the business partnership without risking any damage to family ties. You want to ensure that even if the family business ends, your relationships will remain intact. 

Starting a family business can truly be an adventure. From creating the right structure to selecting the right people, there are many factors involved. These 5 simple tips will bring you one step closer to business success.