Starting a Business with Family: 4 Ideas and Tips
Going into business with family is more common than you may think. Family-owned businesses employ 60% of the U.S. workforce and account for 64% of the gross domestic product, according to SCORE. Approximately 22% of the nation’s 33.2 million small businesses are jointly owned by a husband-and-wife team.
Driven to unite multiple home services brands under a single umbrella, we’ve been helping families build business legacies for more than 17 years. Let’s explore some of the ideas and tips we’ve learned along the way.
1. Identifying the Right Business Idea
A good family business is one that aligns with the strengths, interests, and values of its members. Here are some top family business ideas:
Home services: With the increasing demand for home improvement and maintenance services, starting a business in this sector can be lucrative. PSB’s lineup of home services brands, such as 360° Painting or ProLift Garage Doors, offer excellent opportunities for families.
Food and beverage: Opening a family-run cafe or restaurant can be a great way to bring everyone together, especially if you have family recipes or culinary talents to showcase.
Retail: Whether it's a boutique, a craft store, or a family farm stand, retail businesses can benefit from the personal touch that family members bring.
Education and tutoring: If you have educators in the family, consider starting a tutoring center or an educational workshop business.
2. Involving Family Members
Deciding who to involve in the business is crucial. While it might be tempting to include everyone, it's essential to consider the skills, interests, and availability of each family member. For instance, if you have children with a keen interest in the business, involving them can be a great learning experience. However, if they're not interested or too young, it might be best to focus on starting a business with your spouse or other adult family members.
3. Ensuring Success and Avoiding Pitfalls
Starting a business with family comes with its unique set of challenges. Establish open lines of communication from the outset to avoid misunderstandings later on. It's also essential to have a legal agreement in place that outlines the business structure, ownership percentages, and other crucial details. While it's natural for family matters to intertwine with business discussions, try to keep them separate to maintain professionalism. And, always have a succession plan and exit strategy in place to ensure the business's longevity.
4. Consider the Franchise Advantage
Choosing a franchise model for your family business offers several advantages. Franchises come with a proven business model, reducing the risks associated with starting a business from scratch. PSB provides intensive training and ongoing support, ensuring that you and your family are well-equipped to run the business. Built on a culture of honesty, integrity, and respect, we have franchise management resources designed to help you succeed.
Partnering with a well-known franchise means benefiting from its established reputation and customer base. By aligning with PSB, you can launch a family business for an initial investment ranging from $45,075 to $148,600. Also included in your initial investment are vehicle expenses, insurance, business licensing, grand opening advertising, office supplies, equipment, and more. On average, the total all-in initial investment ranges from $103,850 to $150,000.
Our strategy of stacking franchise brands allows you to offer multiple services under different brands to the same customer base, providing varied roles and opportunities for each family member. Having multiple brands creates synergy and improves the customer experience. You can potentially cut costs by sharing employees and equipment across multiple brands.
Learn More About Premium Service Brands
Ready to embark on a successful family business journey? Get started to learn more about partnering with Premium Service Brands to help set your family up for entrepreneurial success.