Running a family business is something people have been doing for centuries. After all, family firms are a great way to ensure that your name lives on through the years. Yet, in recent years, the number of families passing businesses on from generation to generation has started to decline. If you think you’ve seen fewer companies bearing the words ‘and sons’ or ‘and daughters’ after their name, you are not mistaken.
While there are still a significant number of family businesses operating in the UK, research has shown that the number of family-run firms decreased from 5.2 million in 2019 to 4.8 million in 2020. Yes, the number of family businesses may be dropping. So, how can you build a family construction business that’s successful? Here’s how to launch your family-run construction business successfully:
Identify Your Market
First up, you need to identify your target market and to establish demand for your business. If your construction firm is going to support your entire family, you need to safeguard its success. Profitability should always be a focus, but when your company is your sole income source, you need to be even more cautious.
Carrying out research and establishing the best market for your business is an excellent place to start. Next, you can decide whether to specialise in a specific field or be a general building business.
Set Some Ground Rules
Working as a team always has potential to generate problems. But when you are working alongside your relatives, the prospect of a huge row is never far away.
Being aware of the potential trigger points that could cause arguments is essential. This is so important if you are to keep the peace, work productively, and stay professional.
One really effective way to avoid arguments spilling over into work is to set some ground rules. Setting out what is acceptable and what is expected of each family member is a great way to set everyone’s expectations.
Protect Your Legacy
When you have worked hard to establish your business as a family, you need to ensure it is protected. If you want to continue passing the company down through the generations. You need to start by safeguarding the legal aspects of your company. Meeting with an estate planning lawyer is your first step. The lawyer will be able to advise you on the best and most tax-effective way to protect your business when you pass it on.
Final Thoughts
There are so many positive reasons to start a family construction business. Establishing a successful family business can be a source of immense pride. Seeing your company flourish and grow, knowing that you created it alongside your family is an amazing feeling.
If your family business is to succeed, you need to figure out some ground rules. Making sure everyone aims for the same goals and understands their role in the business is a great starting point. From here, you will have an excellent foundation to build your construction business on.
