Family businesses provide crucial support to local economies. Beyond maintaining jobs and driving innovation, they are anchored in their communities. Japan exemplifies how family businesses endure across centuries, with generational succession built on long-term vision, culture, and heritage that foster sustained success and trust.
In the UK, over 5 million family firms represent 93% of private sector companies. Most of these businesses contribute to primary industries, including agriculture, mining, and utilities. They make substantial contributions to tax revenue, support millions of jobs nationwide, and generate large turnovers.
Yet, sustaining a family business across generations is challenging, as not all survive past the second or third generation. Still, this should not deter you—taking the first step is crucial, so here’s how to launch your own enterprise.
Make a Plan of What you Need
Starting a business means knowing where to get your resources from, including financial, informational, and collaborative. You can start by conducting market research on the opportunities the local economy could hold for your idea. It’s important to gain a competitive advantage for your business, so make it unique and useful.
You will also write a business plan to settle aspects like partnerships, activities, value proposition, and customer relationships. Luckily, there are many business plan templates you can find online and personalize them based on your business idea.
Seek Funding Opportunities
Perhaps one of the most crucial factors in determining a company’s longevity is its funding. Whether it’s self-funding, attracting investors, or getting a loan, you must understand that these finances should cover the business so you can invest in its development.
There are several finance and support programs for small businesses you can apply for in the UK, but most have an opening and closing date you should check out. In addition, grants are usually fitting into diverse sectors, such as installing electric vehicle charge points, preserving conservation areas, or supporting digital inclusion innovation.
Learn How to Safeguard the Business
Small businesses are exposed to numerous risks that their owners may not be aware of. For example, they may not be prepared for events that disrupt operations, such as market shifts, so they don’t have a risk assessment and risk management plan in place.
Moreover, businesses in their starting years are at the highest risk of cybersecurity issues, since they overlook the need for vulnerability assessments. Hackers target small businesses exactly for this negligence, so you should prioritize:
- Training employees on the best cybersecurity practices;
- Updating software and hardware regularly;
- Getting an enterprise password manager;
- Devising incident response protocols;
- Being up-to-date with the latest kinds of cyber-attacks;
Consider the Location and Business Structure
The location and business structure you choose will impact the taxes you will need to manage, as well as the legal requirements and personal liability. As a family business, you could launch an online store or have a home-based business to be able to take care of the kids as well.
At the same time, the business structure you choose should work in your favor, as it’s the first business you’re starting. Therefore, research thoroughly the benefits of sole proprietorship, partnership, or a combination of structures. Ownership, liability, and taxes are considerably different for each category.
Settle All Documents
Starting a business involves managing various documents, from registering the business after selecting a unique name. You will also need to obtain federal and state tax IDs, apply for all necessary licenses and permits, and establish a business account separate from your personal one.
From now on, you can start operating, which will take a lot of time and patience from both of you. This is where things may start to get difficult, considering you will have to split your attention and energy between the growing business and the kids. Here’s how you may be able to balance everything.
Be Patient and Don’t Let the Business Run You
You are not your business, so you must create boundaries between the company you manage and the time spent with your kids and spouse. Investing less time with children might break down the family bonds you created in the beginning. This can happen when parents live a separate life from kids as they dedicate too much of their time to a business, especially if they also work a regular full-time job.
In addition, other effects might lead to emotional distress, poor academic performance, and dependence on social media on the kid’s part, since they start feeling neglected. At the same time, you don’t have to sacrifice the business if it’s part of your dream. Balancing these two could mean ensuring you are present every dinner at home and participating in every one of their recitals or sports games, while managing the small business tasks when they’re most busy.
Learn to Rely on Your Partner
If you open a business with your spouse, things can be both easier and more challenging. You will spend time together, but you will find it difficult to manage time for kids, going to the gym, or even going on a date. On the other hand, if you are the sole business owner in the family, this means your partner will have to manage the household and the children more than you.
Communication and understanding are key here. Don’t assume your partner will figure everything out on their own while you thrive in the business industry, but rather create a schedule so you can both have some free time. As the business grows and you hire more employees, you will be able to delegate tasks and have more free time. Until then, planning is essential, so make the most out of it.
Final considerations
Starting a family business is considerably beneficial for the local community, and it provides you with a sense of purpose. However, you need to figure out how to balance the time investments between the business and the kids, as both are important now.