Other possibilities to consider

Below you’ll find a few other options to consider when brainstorming ideas for your new business.

Both of these options can be implemented as add-ons to an existing business model, e.g. “How can I take my current business idea and make it eligible for non-profit status?”

Or they can form the foundation upon which you map out your other business ideas, e.g. “I know I want to build a family business, so what niches and business models can we all agree on?”

Family Business

Family-run businesses can be extremely successful when done right. On the other hand, they can split families apart when things go wrong.

Family-run companies make up a large percentage of the businesses out there. One of the reasons is that they provide instant start-up capital. If somebody doesn’t have enough money on their own to start a company, it’s not uncommon for them to ask for help from family members.

What is a family business? It could include just members of the family, or outsiders as well. As long as it’s owned/run by the family, it’s still considered a family business. Here are some of the main advantages and disadvantages to this kind of company.

Pros:

Obviously the biggest plus is that you know the people you work with. This means that you are aware of whether they are trustworthy or not. If they are not, you can simply avoid hiring them. Therefore, you are more likely to hire good workers.

Also, family employees are going to care more about the success of the enterprise. This means that productivity could be higher than if you were to hire somebody off the street.

Cons:

People in the family will often be placed in important positions even if they don’t deserve them. There is a lot of pressure to promote or hire people simply because you they’re related.

And it’s much more difficult to fire them if things aren’t working out. This job security could result in them slacking off at work. Also, preferential treatment towards family members could result in resentment from the non-family member employees.

There can also be dissension when it comes time for someone new to take over the company. There can be a lot of resentment if one family member gets chosen over another.

How do you avoid these problems?

First, make sure the family members do not receive preferential treatment. This is easier said than done. However, it is very important.

Also, make it clear who is in line to take over the company from the outset. This prevents any bad feelings down the road.

The bottom line is, do not hire someone just because they are family. Obviously, there will be exceptions. For instance, if your brother just got laid off and can’t pay his bills, you might want to bring him aboard to help him out. Just make it clear it’s only temporary so you don’t build unreasonable expectations.

A good rule of thumb is to bring someone in only if they have the skills necessary to do the job. Put them through the application/hiring process and treat them just like you would anyone else. If you follow these two simple guidelines, you can make your family-run company a big success.

Excerpted from:

Starting A Business 1-2-3
The premier step-by-step interactive training system
for starting your business with confidence and clarity

Module 1: Research and Development