At CorpNet.com, we wholeheartedly believe there’s nothing better than making money doing what you love with the people you love. My husband Phil and I launched our first business when we were in law school…that was back in 1997. We know firsthand just how exciting and rewarding it can be to build a business together.
Whether you’re looking to start an accounting firm with your brother-in-law, market mom’s famous salad dressing, or open an antique shop with the whole family, launching a family business takes a great idea, hard work, and an open mind. Here are a few tips to keep in mind if you’re considering turning a family project into a full-fledged business:
1. Discuss the risks upfront:
It’s important to have an open and honest discussion about all the risks involved in the business. If everyone is investing money in the business, do all family members understand there’s a risk of losing the investment? Assess everyone’s tolerance for risk before starting.
2. Outline clear roles and responsibilities:
Divvy up the duties in order to avoid conflict and confusion down the road. When assigning roles, consider each family member’s unique qualifications and interests. And make sure everyone feels like they’re making a vital contribution to the business.
3. Set boundaries:
When you’re running a business together, it’s tempting to discuss business matters 24/7. While it’s not always possible to keep business discussions “in the office,” make sure to carve out some family time (for example, a date night, family cook-out or beach day) where no shop-talk is allowed.
4. Seek outside advice
While running a business with your loved ones is a wonderful thing, it’s important to invigorate your business with fresh thinking and new ideas. From time to time, solicit input from non-family members in order to get a healthy reality check.
5. Check everyone’s commitment level:
Make sure that all family members involved in the business are enthusiastic and fully dedicated to the idea. Any startup demands 100% commitment from everyone involved, and a family-run organization is no different. The last thing you want is someone to reluctantly sign-on out of a sense of family obligation.
6. Treat it like a business:
Make sure your family business is structured soundly from a legal standpoint. Avoid any hard feelings or sticky situations by working issues out in advance, such as ownership shares and how to liquidate shares in case a family member leaves. It will also be critical to incorporate your business or form an LLC for your business in order to separate and protect the family’s personal assets from the business.
Ready to turn your family fun this summer into a business? Talk to CorpNet for a free business consultation on how to incorporate a business. CorpNet’s free tools, advice and guidance can help you choose a business structure, form an LLC, set up an S-Corporation or other corporate entity to protect your assets and attain the corporate tax benefits and financial advantages of doing business as a corporation.
Call us at 888-449-2638 to get started with the process. We can walk you through the entire process to get your new business off the ground the right way. We work in all 50 states and our services are backed by a 100% satisfaction guarantee. We make everything easy for you so that you can focus on what you do best – running your business!
Let our family help your family! We get small business because we are a small business just like YOU! Call 888-449-2638 today to get started.