Tips for Starting a Family-Owned Business

Embarking on a business venture with your family can be a great way to enter the world of entrepreneurship. When armed with your most-trusted team of colleagues, the overwhelming task of business ownership can seem less daunting and more manageable. If you’re planning on starting a family-owned business, keep these tips from the experts at Sunbelt Business Brokers in mind.

Decisions to Make When Starting a Family-Owned Business
If you’ve decided starting a family-owned business is the right decision for you, you’re not alone! In fact, 90 percent of businesses in the U.S. are family-owned and operated. Consider the following tips as you make your next business move to help plan for success.

Business Planning
As you begin planning for the first steps of business ownership, be sure everyone is in agreeance regarding the basic business plans. Whether you choose to start a business from scratch or buy an existing business as a family, a clear business plan must be drawn out. Things to consider when planning your future business include:

• Finances
• General operations
• Marketing strategy
• Company Mission

Be sure to keep your business plans in mind as you progress and document any future changes for reference down the line.

Assign Roles
As you craft your general business plan, be sure to assign everyone involved a specific role in the company. Determine who will handle what jobs in day-to-day functions and consider developing a process for hiring future employees—both family-related and not. While some duties may cross over job lines in the long run, be sure there’s a clear path to start with.

Create a Protocol for Conflict
As family-owned businesses present a wealth of pros they can also bring occasional conflicts, too. It’s not uncommon for emotions to interfere with business operations, and you’ll need a protocol for conflict resolution in place before they arise. Common family conflicts range in severity from minor disputes that are more personal in nature to larger issues including job termination. Whatever protocol you decide to put in place, be sure you and your family understand it from the beginning of your business ownership.

Plan for the Future
Though your focus may only be on starting your new business, it’s always recommended to take the time to plan for your future early on as well. After all, not every business is successful in the long run. To help ensure you beat the odds, plan for your exit strategy or succession sooner rather than later. To pass ownership within the family, some questions you might answer include:

• What steps must I take before exiting the business?
• When do I want to exit the business?
• Who will take control of the business?

Planning ahead is the best way to prepare your business for the future. If your exit strategy could use some fine-tuning, consider enlisting the help of a local professional or a Sunbelt business broker.

Starting a family-owned business provides a unique opportunity to grow closer to your family members and enjoy each other’s successes. Ensure you plan for many successful years to come by consulting with your local Sunbelt Business Brokers office!

Brian Knoderer

Brian Knoderer is the President of Sunbelt Business Brokers. He has over 20 years of experience as a business owner and managing business transactions. As a seasoned intermediary, Brian has successfully represented companies in a broad range of industries helping business owners achieve their desired exit strategy or growth initiative.

Brian is also co-owner of Sunbelt Indiana and Managing Director of MMI Capital Partners, a franchisor focused investment banking firm.

Previously Brian was involved in several entrepreneurial ventures as well as having held corporate roles in Franchise Development for Prime Hospitality and Choice Hotels.

Brian is a graduate of Ball State University with a degree in Management Information Systems and earned his MBA from Butler University. He has received the Certified Merger & Acquisition Advisor (CM&AA) designation, holds both the Series 7 – General Security License and the Series 63 – Uniform Securities Licenses, and is a licensed Real Estate Broker. He has been affiliated with several organizations including the Entrepreneur Organization, a Member of the International Business Brokers Association, Venture Club, and a Board Member of The Entrepreneur Institute.