There are more than five million family businesses in the US today. These companies range from multi-billion dollar global firms to small "Mom and Pop" corner stores. What they all have in common is the passing down of responsibilities between family members over generations.
If you’re an entrepreneur considering a family business, what are some of the best business ideas to consider for 2020?
PricewaterhouseCoopers' (PwC) Ideas for the Future of Family Business
A 2019 PwC surveyed established family-owned companies to come up with suggestions to get ahead in 2020. Their recommendations suggest that family business owners should:
- Develop a growth and succession roadmap charting your values. One of the benefits of a family business is there is an overarching mission to help guide the work they do.
- Work to engage the next generation of the family in the business. This transition is crucial to the long-term health of the company and an area too often neglected by family-run ventures—until it’s too late. According to PwC only about a third of all family businesses will last beyond the original founder.
- Increase the digital IQ of everyone in the business. Make certain the current workforce has the digital tools needed in order to remain competitive. Retrain workers when necessary to eliminate any skills gaps. Also, watch the market for any technology innovations that you can affordably leverage to help your team work smarter. If your business needs a financial boost to achieve these goals, Benetrends can help with small business funding, like our 401(k)/IRA Rollover program (Rainmaker Plan®), to keep you digitally relevant in the marketplace.
While these are all important strategic ideas for the established family business, what are the best types of companies to start from scratch in the New Year?
Top 10 Best Family Businesses to Start
While the Internet has been a great equalizer, allowing anyone to jump into an online business, what about families seeking to start a small business in rural areas? Some of the options available in more urban areas are absent, and the market size may be limited. Business Idea Insight tried to tackle this by suggesting a number of business ideas specific to rural areas, including:
- Opening a brick and mortar corner store featuring some of the most common items local consumers may have to travel to find.
- A yard clean up or landscaping service can provide everything from tree removal to garden design. Many rural properties sprawl over an acre or more, so offering a helping hand or a green thumb may be the perfect start-up idea.
- Equipment maintenance would be a handy much-needed service if you have the skills to provide it. Riding tractor maintenance, chain saw repair, or even washer/dryer tune-ups are all in demand, particularly in rural areas where the nearest hardware store may be miles away.
- Ridesharing has low upfront costs. If you live near a city, there’s an Uber driver on every corner. That's not the case in the country, which may make your offering more unique and valuable.
Small Business Trends has additional start-up ideas for your family-run business that could work no matter your geography. They suggest:
- Starting a family-run restaurant. In an era of chain and mass-produced food, a local restaurant can be both wildly popular and profitable.
- Launching a family blog and then monetizing it with affiliate links. (Or, creating a niche website that offers products or services.)
- If you have the skills, a general contracting business for home repairs could be a good family business to hand down to your children.
- If baking or cooking is more in your wheelhouse, consider a catering company.
- Cleaning homes or businesses is a stable business that is always in demand.
- Finally, starting in-home childcare or even a pet sitting business is a good way to use your skills to benefit your family.
Many people dream of starting a small family business, but believe the dream is out of reach due to funding obstacles. Benetrends Financial helps remove those obstacles with a comprehensive suite of funding options, including 401(k)/IRA (ROBS) funding strategies, SBA loans and more. Get in touch to schedule a consultation with one of our funding specialists today.