The Best Family Business to Start: 3 Types to ConsiderPosted on Wednesday, January 10th 2024
The Best Family Business to Start: 3 Factors to Consider
Fish Window Cleaning® was started by Mike and Linda Merrick, a couple who each brought different skills to the business. Linda remarked that she knew the business would work because of her husband’s work ethic. In return, Mike said Linda was the detailed and systematic thinker who drove the couple to develop the business into a franchise.
What Makes a Family-Friendly Business Idea?
There are certain characteristics of a business that can make it more family-friendly in terms of creating a financial future for the people closest to you.
1. Transferable Skills
The best family business to start will be one where the knowledge and skills required to learn the business can be easily acquired. If the business you choose is too focused (i.e. engineer, electrician, hair stylist, etc.) you will likely eliminate family members from wanting to join the business because their interests lie elsewhere.When you choose a business that is adaptable to any skill set, you have a better chance of providing an attractive area of interest to family members. Plus, a family member can use their skills in ways to benefit the business and feel confident in their contributions.
2. Wide Opportunity
Ideally, the business you choose should have opportunities for the future. This could be in ways to expand and grow with more customers or to expand and grow with additional services. When there are new paths for the business, family members can be more engaged and invested in the outcome and will be more encouraged to be part of the succession planning exercise as well.
3. Good Mix of Roles
A business that offers a variety of roles can be attractive to growing a family enterprise versus a business that is run by a single dominating role. When you have areas of the business that family members can specialize in, that gives more opportunity for them to see a future in the business.
Tips on Operating a Family Business
Startup Nation offers keys to striking the right balance in a family business. When we reviewed these tips, many of them resonated with us as we onboarded family franchisees to Fish Window Cleaning.
- Communication: Business is business. Family is family. Talk about one separate from the other.
- Roles: You can make big decisions together, but each person needs to be in charge of and accountable for their responsibilities.
- Boundaries: The tendency will be to talk business all the time, and there needs to be a break from that.
- Fairness: Ideally, you have a mix of family and non-family members in the business. Treat everyone fairly in pay, promotions, scheduled shifts, praise, and criticism.
- Management: Develop clear lines of leadership to ensure the business runs at its full potential. Get outside advice when you need it as a fresh perspective so one voice is not dominating the management style.