Over the past five years, family-run enterprises have shown a significant 33% economic growth and make up nearly 30% of businesses with an operational tenure of more than 16 years. With their contribution to the global GDP sitting at 70%, and creation of 60% of worldwide job opportunities, they play a pivotal role in the global economy.
Predictions for the next five years from 2022 to 2027 estimate a further growth rate of almost 40% for these family-run businesses, a contribution to global GDP set to increase to 75%, and generating as much as 65% of global employment. This robust growth and increased market share demonstrates the resilience and competitive edge of family businesses.
Given these statistics, setting up a family business presents a promising prospect with substantial stability and growth opportunities. Despite the potential challenges, the benefits, which include impressive growth opportunities and financial and personal gains, together with a strong foundation and strategic planning, far outweigh the risks.
Several family business ideas include pet sitting or grooming services, home-based baking and catering services, or home-based tutoring or education services- all of which leverage existing skills within the family and provide a flexible work schedule. However, these businesses may require specific licenses and certifications.
Another viable family business plan is starting a cleaning service which yields a consistent income stream.
Promising growth trends in family businesses
A home-based bakery or a retail shop selling handmade items can also prove lucrative. Moreover, online businesses are fast gaining popularity, and with the right product or service, success could be just a click away.
A feasible option for a family business is dropshipping – the process of buying and selling products via third-party platforms. This eliminates the need for inventory making it less risky and more accessible. However, it’s crucial to maintain quality control and provide excellent customer service.
Successful launching a family business necessitates a comprehensive business plan, effective work-life balance, and personal investments from all family members. Thorough market analysis, open communication, clear expectations, a well-defined business structure, and succession planning all contribute to smoother operations and longevity of the family business.
