Making the Family Business

What is a family business? The small mom and pop store at the end of the street, you know the types. That’s the normal thought when people think about family businesses, but how about companies like Wal-Mart? A $400bn+ revenue per year company. Founded by Sam Walton in the 1960’s and whose eldest son, Robson, is the current chairman of the board. In fact some statistics state that approximately 35% of Fortune 500 companies are family-controlled and that family businesses account for 50% of U.S. gross domestic product and employ the bulk of the US work force. However, only one third of family businesses make it passed the second generation.

It is these types’ statistics that make family businesses such an interesting proposition. But what makes that “one third” of them so successful?

1. Passion

“When work, commitment, and pleasure all become one and you reach that deep well where passion lives, nothing is impossible” – Unknown

The enthusiasm that family business owners bring to their business, the extreme attention to the tiniest of details or the out of the box thinking; are all signs of the passion that the family business owner portrays. After all, in most cases, there’s no fall back for them, so the choices they have to make are the ones that they’ve created themselves.

This passion is not to be confused with good leadership. One does not necessarily lead to the other but when combined effectively can be tremendously rewarding.

2. Commitment

“There’s a difference between interest and commitment. When you’re interested in doing something, you do it only when circumstance permit. When you’re committed to something, you accept no excuses, only results” – Unknown

Often, the family business members commit everything to their venture. After all, it’s not just them but the other family members who are relying on their success and if it doesn’t work its all the family that will feel the consequences. This factor is a large driver of the first generation family members of the business. Unfortunately the second generations sometimes don’t feel like they have a choice about joining the firm or they take it for granted and the level of commitment drops significantly.

3. Pride

“Pride is a personal commitment. It is an attitude which separates excellence from mediocrity” – Unknown

One of the success factors of a family business attention to detail and adherence to high quality standards; this translates into great products or high levels of service which is often the differentiating factor between a family business and their nearest competitor. This pride in their achievement often leads to a specific organizational culture of the same high standards, and as the business grows this kind of culture gets ingrained and gives the family business the edge.

There are, no doubt, other reasons why specific family businesses become a success, but passion, commitment and pride will be three factors that have the potential to make a real difference.

Planning for Your Business Future

Life can be unpredictable and does not always turn out as we planned. Being prepared for a catastrophic event is vital to the sustainability of every business. It is important to prepare for the worst case scenario, thus allowing you to relax and plan for the best. To help you create a plan that addresses the needs of your business, Below is information on the key components that are crucial to have in place to ensure the long term stability of your company.

Consult a Professional
Consulting with a professional will guarantee that you will understand the options available to meet the unique needs of your business. Therefore we recommend that you consult with the following professionals: an attorney, an accountant, and an insurance agent.

Insurance
In the unfortunate event of a death or disability, maintaining the financial stability of the business members is essential to the continuation of the business past the loss. We recommend requiring all members to have disability insurance, life insurance, and health insurance policies that are payable to the member’s families. This will provide financial security for the business members and their loved ones.

Every business should carry a life insurance policy on its owners. This will provide the partners/members/shareholders with the financial ability to purchase the business in the unfortunate circumstance of a death.

Prepare an Exit Strategy
It is important to have a plan in place that will allow the daily operations to continue if you are no longer able to participate in your business. The continuation of the company affects not only the owner’s family, but it also affects the job security of the employees. To protect your company, it is important to discuss possible third party options for ownership. Often times there are family members or employees that could step into your role in an emergency. Prepare that individual for this worst case scenario by speaking to them before an unplanned catastrophic event occurs.

In a partnership or corporation it is important to plan for the scenario that a partner/member/shareholder would want to leave the business. It is important to clearly define how the other owner(s) will buy out the individual and how the buyout will be financed. “Establishing the valuation process up front will avoid conflict at the time of the buyout” states Fred Meier.

Emergency Document
It is important to develop a document that lists your company’s combinations, log in information, passwords, daily systems, and other key information that is required for the daily operation of your business to continue. Keep this document in a safe place and communicate with employees what is to be done on a temporary and permanent basis if an emergency were to occur.

How to Leverage Your Home Based Business in 3 Easy Steps

Everyone has specific things that we want to do or have or perhaps be. Perhaps leverage your home based business could be of interest for you. There’s a great deal of curiosity about how to do less work and completely leverage the home based business online. There is much helpful info available on that if you are interested. If you want to learn how to leverage the work involved in starting your own home based business then this short article can assist you. To boost your understanding, read on.

Discover how to use a home business system to get the work and prospecting done in 3 easy steps!

The 1st step you will have to take is to find a complete home based business internet system. This will be crucial because it will save you time and money in the long run. You will need to avoid getting all the tools and resources in different places on the internet. Finish this step promptly, correctly and completely. This is really important. It it’s not done right, for whatever reason, then you can not leverage the work involved to build a Downline and providing training for your home business Members.

The 2nd step will be having a System can be used and copied by all members online. Items that you should avoid here are a prospecting system, Auto Responder and advertising tools and resources that will help you to build a successful online business. And you will probably also want to avoid having to do the work on your own and need to train your Downline by yourself.

The 3rd step is Find Quality Members, who are willing to use the System Effectively. This will be significant because you need to leverage and build a home business that will then grow with the never ending home business members. The most important thing to avoid is to do it all on your own and build the home business by yourself.

Just go through the steps as specified and you ought to have no issues with how to leverage your home based business easily, rapidly and well. Just stick to the stages in order, for the reasons as explained, while carefully avoiding the traps, problems and potential mistakes mentioned. Then enjoy the fruits and great things about having leverage your home based business that you will have earned by your time and effort.

Discover the way to to leverage the time and work in the home business industry at my really simple home based business website at http://choose-the-right-team.com.