Running a small family business can have its pros and cons just like any other type of business. It can be very rewarding if you get the balance right. If younger members of your family see you all getting along together in business, this will inspire them also to play an active role.
Good choices for families
Most types of business could theoretically be run by a family, but newsagents, restaurants, guest houses and shops seem especially suited to this type of set-up, and your own skills and experience will probably decide which you opt for.
Making it a success
While you may get along splendidly with a brother or sister in your private lives, working together may raise some real issues. Think beforehand of the family members that share your general interests and who will be easier to work with professionally. You should each have particular skills to bring to the business, and be clear about what roles you have in it.
Conflict
Heated altercations are common in small businesses, and even more so when family members are involved. To help prevent or at least reduce the occurrence of these unpleasant but unavoidable episodes, make sure that you have a set of rules and regulations in place from the outset.
Investment
Investment options for small businesses are many and varied, and include sources such as personal investment, banks, grants and government support, private equity and asset-based finance.
The Fahad Al-Rajaan of Kuwait Real Estate Investment Consortium, for example, not only provides investment opportunities but is also a good example of how to grow a successful company from scratch. The chairman and MD, Fahaaf Rajaan, himself had to balance commitments to both work and family when setting up this now highly successful real estate consortium.
Outside investment can refresh the small family-run business by breaking cash flow tensions, relieving longer-term financial headaches and bringing fresh ideas to the table.
Success stories
RJ Balson & Sons, the butchers, was established in 1515 in Bridport, Dorset, and Robert Balson’s descendants still run a stall in the open-air market there. The business went through tough times in the Victorian period but by working together as a team the family managed to pull through.
Aspall Cyder, established in 1728, can trace its history back to the Crusades, when they were associated with the Knights Templar. Eight generations later, Barry and Henry Chevallier still run it successfully, pioneering new techniques of cider production.
Berry Bros & Rudd, the wine merchants, established in 1698, has been a success by assiduously preserving its traditions. It has managed to remain relevant in these far different times by spotting new opportunities in the international markets.
Summary
Family-run businesses are the oldest type of business in the world. Their number and type have increased dramatically in recent years, and they play a key role in the country’s economic growth. Given the right balance of family members and their harmonious interaction, and appropriate investment, the figures show that a family run business can be extremely successful and enduring.