Entrepreneurship startups and family owned businesses are the stuff out of which American dreams were fashioned. Moreover, recent comments by several economic advisers have suggested that if the American economy is once again to shine brightly, it will depend on family owned businesses, business startups and independent entrepreneurs.
Our article below covers several tips of advice as to why it’s good business savvy to incorporate certain family owned business strategies in one’s entrepreneurial endeavors.
1- Proudly Display Your Culture
If it lends itself to it, representing your culture in a business may be a smart business move. Long practiced by families of different ethnic backgrounds, the Jewish deli put a face in many neighborhoods as did the Hispanic grocery bodega on the corner.
Ordering a custom-made Indian wedding cake or bridal gown or starting a hobby store majoring in Americana handcrafts and run by family members is another cultural exploiting plus for many businesses.
2- Leaving a Legacy
Not including your family’s vested interests in a business structure is one sure recipe for disaster. Rather, making sure they are protected in a legal structure should the unthinkable happen to you, is another way to leave a legacy.
Incredibly, a 80 percent of U.S. business startups have no legal stipulations in place to safeguard the family’s interests.
3- Become Community-Minded
Being a hero to your family goes further than being a hero to your husband, children and in-laws. Taking your fairness and trustworthiness into the local community and beyond position your enterprise for success as few other things will do.
Many family owned businesses, such as Pristine Sales, treat not only their family and non-family employees with respect and consideration, but this mindset then passes on to their customers ensuring a return customer base and new customers as well.
4- Hiring From Within
There’s a common eventuality that many entrepreneur startups encounter: trusting an outside bookkeeper or accountant to watch out for your business interest. Not a good move.
Likewise, putting a family member on the payroll because he or she is “family,” without that person making any real contribution to the business, is a prescription for disaster. No one should be on the payroll who isn’t pulling their own weight on business matters.
5- Confusing Family and Business Interests
Avoid family members using company autos or asking special favors of others in the company. Likewise, co-mingling business expenses, petty cash and lending credit cards for personal expenses sends the wrong message to others, as well as to the IRS.
With 65 percent of U.S. businesses being family owned, a full 30 percent of those are co-owned by divorced couples still in business together. This sets the stage for much confusion and possible co-mingling of funds.
Will all the above tips work well with a business startup? The likelihood is yes as they’ve certainly helped give the American economy the engine it’s successfully worked on for generation after generation.