5 Business Models Suitable for Family-Oriented People

 Finding the best business model for your family has never been easier. When a company is successful, the roots of the business get the most praise. A business model with your family values in mind is a solid foundation to start with.

Franchise

A franchise brings several great features to the table for family ownership. It is a truly hybrid business model that includes some of the most famous brands in the world. With a franchise, you can have the best of both worlds when it comes to a corporate and sole proprietorship.

Franchising is a great way for a family to enter an already established business. Instead of starting from nothing, a franchisee can buy into an already successful formula. This low-risk high reward scenario has been the backbone of many family businesses. You gain the name recognition of a big brand, but get the satisfaction of operating in your own personal way. When going the franchise route, a corporate lawyer or family lawyer is the biggest decision to make.

Owner Operated

The owner-operator model is discussed in detail based on the industry. A family-owned business that operates under this model will have the founder(s) in total control. In this case, control of the business is passed onto a chosen family member after the founder(s) death.

The family member doesn’t necessarily have to be the children of the original owners. Transferring to the most responsible family member is the better choice for the survivability of the company. For the other family members, important roles are given to keep them involved in the business. This also serves as a way to showcase maturity and growth while learning how things run. When the next generation comes along, the company can choose from the now experienced family members.

Nested

When the business strategy is preferred over fast growth, the nested model is the best choice. It is the ideal family business type since it focuses on individuality and personal choices. Family members run their own businesses how they want but work under the authority of the larger family business. Revenue for all businesses is shared, and it is the preference of each individual to move at their own pace.

You are your own boss in a nested business, and the amount you earn will always be fair. Every hard-working member is compensated fairly, and will never feel that they are propping up the other businesses or assets.

Public

A public company that is privately owned is known as the public business model. It grants limited control of the business to the original owners for major decisions. Most of the minor day-to-day decisions are handled by professionals that have a stake in the company or are already in the industry. With the addition of trading outside shares, this is a good model for families that need a lot of resources to keep their business running.

Distributed

To avoid generational conflicts with a family business, the distributed model may work best. It evenly distributes business ownership among select family members. Having a position in the company doesn’t matter, so issues with ownership types won’t affect a running company. If handled correctly, the distributed model can be the most stable in the long term.

Family Comes First

The future of your business is based on its original model. There will always be room in any industry for a strong family-oriented business. Make the right decision there, and longevity is guaranteed.