How To Run A Family Business Successfully

How To Run A Family Business Successfully

Creating a family business is an opportunity to work with those you most trust and care about. It can be very successful as long as it is set up and run correctly—as a professional business.

Working together
Creating a family business can be highly rewarding,and it offers many advantages, such as a shared desire to succeed and the benefit of mutual support. However, there are also disadvantages. Where most roles are performed by family members, the business can lack the breadth of skills and experience found in more diverse companies. Also, family relationships are not the same as working ones, which can result in conflicts that could harm the business .
To help ensure the business succeeds, it is essential to make some early decisions, such as who owns it, how it will be financed, and how profits and liabilities will be shared. You also need to decide the roles of everyone involved, when and how they work, and how they will be rewarded. To do this, draw up a written family charter together (see below”FAMILY CHARTERS”) so that everyone knows what to expect from the business.

FAMILY CHARTERS
Establishing clear roles and responsibilities is particularly important in family-run businesses. Conflict can lead to long-term divisions. To avoid this, create an informal agreement or charter.
All family members involved will need to decide what the charter should cover. Such documents typically outline how the company will be run, its short- and long-term objectives, areas of accountability and authority, and, sometimes, how it might be passed on to the next generation. You may need to consult a lawyer or business mentor to help you agree on tricky issues, such as sharing control and potential wealth.
A business charter is not legally binding. Once you have started selling, it will need to be reviewed regularly to ensure it remains relevant to the business.

❯ Familiarity Knowing each other well can lead to unprofessional attitudes.
❯ Narrow thinking A family workforce may not be open to helpful, external ideas.
❯ Personal resentments These can affect the business and damage family relationships.
❯ Assumptions If there is no charter, senior family members may assume they are in charge.

Is it right for you?
Setting up a family business is not always straightforward. Before you take the plunge, you—and everyone involved—need to weigh the pros and cons to decide objectively whether this is the right choice. A new business requires full commitment and a mutual determination to make things succeed.
Families working together can be a potent force. However, if there are any areas of conflict, these will need to be settled at an early stage to preventthem from jeopardizing future success.

“About 90% of American businesses are family owned or controlled.”
source : https://www.inc.com/encyclopedia/family-owned-businesses.html

CONS
❯ Familiarity Knowing each other well can lead to unprofessional attitudes.
❯ Narrow thinking A family workforce may not be open to helpful, external ideas.
❯ Personal resentments These can affect the business and damage family relationships.
❯ Assumptions If there is no charter, senior family members may assume they are in charge.

Should My Business Outsource or Hire In-House?

Should My Business Outsource or Hire In-House_

Finding professionals to help with specific operational tasks costs money, but can save you time and may increase your chances of commercial success.

Identifying your needs:

Getting your business up and running can seem overwhelming, with many aspects to coordinate, such as dealing with customers, handling your accounts, and other legal requirements, plus providing your goods or services. However, this can be made simpler by looking at each function and deciding whether making use of external help is a good option. Utilizing friends and family with specific skills is one possibility, while another is to seek out small business services that may be available from government or civic organizations. 

You could also consider paying a professional for their services. This could be a one-off commission, such as a web designer creating a website, or it may be an ongoing arrangement, such as using a logistics company to store and ship your products. These decisions will depend on the type of business you are setting up: a home-based, graphic design studio might need outside help only for end-of-year accounting, whereas a restaurateur may need a wider range of services.

Using third parties Although keeping outgoings to a minimum is crucial for any new business, paying for outsourced services from a specialist can save money in the long run. There are a wide variety of services you may need. An independent professional can provide a fresh perspective, pointing out problems or suggesting solutions. 

However, before enlisting external services, it is important to be clear about the specific needs of your business and have an idea of budget. Ask for quotes before making a decision and research the outsourcers thoroughly. If there are no reviews online, ask for examples of their work and references from previous clients, and never pay for anything upfront. 

💡 NEED TO KNOW:  

▶ SLA (service level agreement) is a contract that lists the type and value of outsourced services, along with any conditions, such as annual maintenance. 

▶ Warehousing is the storage and management of goods waiting to be sent out to distributors and consumers. 

▶ Inventory describes the goods produced, or in production, that will be sold by a business. 

▶ Logistics manages how things are moved between the point of production to the consumer, including packaging, distribution, and transportation. 

Marketing

If your business needs specialist marketing expertise, a particular form of marketing, such as social media, or you want to launch a bigger campaign than you can handle in-house, you will need to go to professional marketers.

▶ Creating content 

▶ Managing social media 

▶ Running email marketing

IT 

For occasional or longer term IT needs, freelance or agency experts can improve computer networks and operating systems, as well as maximize the performance of your website. 

▶ Developing apps 

▶ Implementing new technology 

▶ Troubleshooting

Customer care:

A customer relationship specialist can respond, on your behalf, to your customer calls or emails in a timely manner, as well as provide aftersales follow-up, if required, and data management. 

▶ Handling sales 

▶ Dealing with complaints 

▶ Customer service training

Logistics:

Outsourcing logistics means that when orders come in, someone else handles their fulfillment and distribution, along with warehousing, product inventory, and insurance. 

▶ Warehousing 

▶ Managing inventory 

▶ Packing and shipping 

Manufacturing:

Unless your product is unique, few small businesses will invest in building a manufacturing plant; the most viable alternative is to use an existing manufacturer. They can also produce prototypes or samples of your product. 

▶ Designing products for manufacture 

▶ Producing components 

▶ Assembling products

Recruitment: 

Finding just the right person for a position can be a struggle. A recruitment agency may help, producing a short list of candidates and charging a one-off fee or a percentage of the new recruit’s salary. 

▶ Headhunting for senior roles 

▶ Providing contract staff 

▶ Workforce planning

Payroll:

A payroll provider charges a monthly fee in return for handling the payment of staff wages, automatically deducting amounts owing for tax and insurance. Using a bookkeeper is another, cheaper way to run payroll and monthly sales data. 

▶ Managing payroll 

▶ Data entry and processing 

▶ Distributing paychecks

Legal and HR:

A solicitor can help you draft business contracts and legal agreements, as well as guide you on the latest regulations. An HR advisor can assist you with staffing issues and contracts. 

▶ Drafting licensing contracts 

▶ Drawing up business partner and rental agreements 

▶ Preparing employee contracts

Accounting: 

Accountants can help with the initial business setup, submit annual tax returns, or provide monthly or quarterly services. Fees are taxdeductible, and it is one of the most commonly outsourced services. 

▶ Preparing tax returns 

▶ Running monthly sales data 

▶ Ensuring payment of sales tax

How To Set Clear And Actionable Goals For Your Business

How To Set Clear And Actionable Goals For Your Business

One of the first steps in starting a business is to define what you want to do and why you want to do it. This will help you focus your ideas more clearly and allow you to start making specific plans.

Defining Your Purpose:

When starting a business, first decide what you want to achieve. Known as your business “vision,” this is a long-term view of what your business will become. To then help make that vision become a reality, identify why you want to start this business and not another. For example, you may want to open a travel agency, but why? It may be because you want to offer exciting trips, to serve a particular market, or because you simply see it as a way to make money. This is the “purpose” behind your business vision. 

Use this to inform your decisions and to focus your plans. For instance, an agency offering unique vacations would be planned differently from one aimed at only making money. Your vision and purpose embody your business, which you can use when deciding your strategies and planning your working procedures and practices. Share them with other people involved in your business from the start, including investors, customers, clients, and staff by encapsulating them in a “mission statement” that sums up you and your business. 

Setting Out Your Values:

While deciding the vision and purpose of your business, also consider the values you want to uphold, such as honesty, integrity, value for money, and passion. These provide a map and compass to guide your decision-making and should be reflected in how the business operates. Incorporate these values throughout the business, and communicate them with others so that everyone dealing with you knows what you stand for. For example, a travel agency catering to older travelers may choose “commitment, quality, adventure, and luxury” as its business values.

Creating A Mission Statement:

A mission statement is a written declaration that clarifies the purpose of your business—what it does, who it does it for, and how it does it. It should be concise and give clear answers to three key questions:

  1. What? Define the products or services that your business provides. 
  2. Who for? Say who your products or services are designed for. 
  3. How? Explain how your customers’ aspirations will be met. 
MOTIVATING OTHERS

Your mission statement not only provides focus for you, but it also serves as inspiration for others. It can be used to help attract and motivate staff, giving them a clear set of values to follow and a keen sense of what the business does and why. It can also be an important marketing tool, projecting a precise image of your business’s unique identity—its brand—to the outside world, helping attract customers and clients. However, it is essential to demonstrate the values you portray, as failure to do so can undermine the message.

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How To Make Your Business Stand Out From The Crowd

Make Your Business Stand Out From The Crowd

In a crowded marketplace, your business needs to stand out amongst rivals in order to attract customers and clients. This involves building and maintaining a unique competitive advantage.

Creating Advantage:

When starting a business, you need to quickly identify what will make your product or service stand out, giving you a competitive advantage. Gaining and sustaining this advantage by offering greater value or better benefits than competitors is especially crucial when you first enter a crowded market. You can create this greater value in several ways. You can offer a product or service that is unique or new, one of higher quality or with superior customer service, or give guarantees. These are your unique selling points (USPs). 

Whichever you choose, it is important to make sure that customers perceive their value, as these are what gives you a competitive advantage. Providing better benefits than the competition (a differentiation advantage) or offering the same benefits at a competitive price (a cost advantage) are possibilities, but beware of making price your USP. Low prices can be interpreted as low quality, and since you can be undercut by rivals, you will not attract a loyal customer base. 

Identifying your customers and understanding their needs is central to building a competitive advantage. However, to retain their custom, you will need to pay attention to what is happening in the marketplace, and constantly monitor what existing and new competitors are offering. The value your business offers to its customers must be commercially viable. There would be no point in increasing business costs in order to attract customers if your profits become minimal. It is crucial to strike the right balance between the value offered and profit.

What Sets You Apart :

Promoting what makes your business better than the competition tells potential customers why they should choose you, and will help to attract your target market. This uniqueness should form 

part of your “value proposition”—the promise you make to customers about the qualities and benefits they can expect from you and your business.

Go Above And Beyond:

 In order to attract and retain customers, your business must offer value and benefits they cannot get elsewhere. These are your unique selling points (USPs).

CREATING USPs 

How to differentiate your product or service will depend on what you are offering, the market, and your competition.

  • Offer products that provide something different from those of rivals, for example, better quality, safer, or unique designs. 
  • Provide services that customers cannot find anywhere else or that are distinctive and more appealing. 
  • Attractive prices can set a business apart from competitors, but quality cannot be ignored. Customers assess both when deciding if something is value for money. 
MAKING IT WORK 
  1. Constantly learn about your customers to ensure you meet their needs, which can change over time. 
  2. Review your USPs regularly to ensure they are unique and are valued by your customers. 
  3. Regularly assess your rival’s USPs and find ways to ensure that yours surpass theirs. 
  4. Monitor the costs and benefits of your USPs to the business to ensure profit margins are healthy. 
  5. Keep watching for new market entrants and what they offer.

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How Do You Engage More Customers to Your Website?

Grow Your Online Business

Increasing the “visibility” of your website will help potential customers or clients find it. There are various things you can do to make your site more likely to get picked up by search engines trawling the web.

Making your site more visible:

To view your website, potential customers or clients must first be able to find it. You can make this easier in several ways, such as by promoting your website online, through social media and advertising, and, most important, by making your website easy to find using search engine optimization (SEO).

Understanding SEO:

Search engines, such as Google, collect data from every page on the web, then use algorithms (math processes usually in computer programs) to turn this data into search results. The higher the algorithms rank your site, the higher it will appear in the list of search results and the more likely it is to be seen, also you can buy affordable SEO services from  Fiverr.  

There are things you must do to improve your search ranking, such as including keywords in your site’s content. These are words or phrases that people might use as search terms when looking for your products or services and that search engines will pick up on. Your site’s title page (as it appears in your website’s code), links from other sites to yours (called backlinks), and the words that you use in your links (phrases with hyperlinked text) can all help grab the attention of search engines. Sites that are regularly updated with good content will also rise in the ranks.

Driving Traffic

Focusing on factors that improve search engine optimization (SEO) is an essential strategy. Having lots of backlinks to your site, for example, is something that search engines rate highly. Some strategies for driving traffic (increasing visitors to your site) are quick and cheap; others may require more investment or the hiring of expert help, depending on your skill set.

Keywords

Research keywords using a keyword tool, such as Keyword Planner or Keyword Explorer. Insert those words and phrases relevant to your business within the first 160 words of your web page, using each keyword only once.

SEO

The higher the quality of your content, the more other websites will want to link to yours. Provide html links in your messages to copy and paste. An easy way to get backlinks is to sign up to online business directories, then link from the directories to your website.

Content

Generate interesting content and keep it fresh, updating it as often as possible. It will not only be useful to your customers but will also boost your search ranking. Also post content on other sites, such as YouTube, that will link to yours.

Social Media

Create a profile for your business on the main social media platforms, and post when you know your audience is active or online. Offer further content that can be accessed via a link to your website .

Advertising

Try pay-per-click social media advertising in different channels, targeting customers by age, location, or other norm . Monitor and then adjust keywords and targeting. Display your web address offline, on business cards, storefronts, or vehicles.

Marketing

Build a customer database and ask permission from your customers to send them marketing information. Then run an email marketing campaign with an offer, including a link to your website.

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