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HOW TO START A BUSINESS : How to Build a Family BusinessMore than 80% of American businesses are considered family businesses, according to the Cox Family Enterprise Center. But as Professor Lloyd Shefsky of Northwestern’s Kellogg School of Business points out, only 30% of these family businesses survive the transition from first to second generation. So the obvious question is: What gives a family business staying power? When 31-year-old Harvard graduate Ada Polla decided to get into her family’s business, she didn’t just hit up her father and mother for a job. "I wanted to get some kind of outside work experience first…and prove to myself and to my parents that I could go and find a paying job outside of the family," says Polla. And she did just that, going to Georgetown's business school and working in the beauty industry before eventually joining her parents’ skin-care line, Alchimie Forever, in 2004. Her dermatologist father never intended the line to go any further than his own patients, but Polla eventually repositioned the products and placed them in top department stores like Henri Bendel and high-end pharmacies. Saurabh Abrol always admired his Indian-born father, Arun Abrol, who had risked $60,000 -- his family’s entire life savings -- to start Wine Chateau, a mom-and-pop liquor store with three branches in New Jersey. Now, with the help of Saurabh, who built out the business online, sales are close to $15 million. "I was always interested in computers," says Saurabh, but he wasn’t excited by his father’s brick-and-mortar operation -- until he realized he could put the two together. In the last five years, the younger Abrol has used his tech know-how to expand on the fundamental family business built by his father. "My father taught me to have great pricing… pass the savings I get from the distributors to the costumers," says Abrol. "But my computer science background really helped me to figure out how to generate sales online." Abrol recommends marketing through Google (GOOG: 393.5, -3, -0.76%), Yahoo (YHOO: 14.98, 0.11, 0.74%), and shopping-comparison sites, and he also says it’s vital to hook up with other related Web sites -- like wine blogs -- willing to exchange links. Taking what the founders have achieved and expanding on it requires more than digital savvy and a new vision, however. To make a family business endure, Professor Shefsky says that both the founders and their children need to express their expectations. "The key to it is communication," he says. Bill Matassoni, CEO of OMBI Consulting, who has worked with family businesses for years, agrees: "You have to wear three hats -- you have to be a savvy person, you have to be a busines owner, and you have to a family member. That get’s complicated…." Polla says it’s important to have a balance of power, explaining that while she is the president and CEO, her parents still have an insurance policy. "My parents are majority shareholders -- so I make the ultimate decision, but if they really think that I’ve gone completely wacko they have a resort to save the business in spite of me." Matassoni agrees that this is a good idea in the first couple of years. But ultimately "you’ve got to put something in place that over time the ownership structure changes because it’s a matter of who is contributing and who gets rewarded." And while he doesn’t believe generations get better at running businesses, Matassoni says he doesn’t necessarily think nepotism is a bad thing. "It can actually be a good thing," he says, "just as long as your son or daughter measures up." By: Christina Scotti May 21, 2009 - http://www.foxbusiness.com/story/small-business/build-enduring-family-business/ How to Start a Small BusinessHow DO you start a small business? Let's take into consideration you have thought out an angle to start a business that is going to revolutionize the industry. Now it's decision time. Are you willing to take a financial risk on the strength of your business idea?...Why Start a Business?Though to start your own business does mean that you'll be stepping away from the relative security of a regular paycheck, having the desire to own and start a new business...Starting a Home-Based BusinessStarting a home-based business can be a little complicated. The checklist below covers the most important sujects that you will need to consider starting your own business...Partnership for Business a Good Idea?Business partnerships have been an important part of entrepreneurship and startup success. The reasons are simple: complementary skill sets, shared equipment ...What it Takes to Start a BusinessWhat attributes suggest someone's a good candidate to start their own business? ...To Start a New Business, Appearance is EverythingThe success of starting a new business depends largely on the owner's ability to convince potential employees or customers that the business is operational,...Before You Start a BusinessIt's a terrific idea for aspiring entrepreneurs to work in the industry they want to start a business, whether they are college business majors...Choosing Your Business NameKeep in mind the availability of a domain name when choosing your business name. Also ask a friend or relative with a knack for words to help you brainstorm....Business Start-up ChecklistUse this small business start-up checklist make sure you don't miss any important steps. Taking a college business course would help you considerabley also....Other related Articles: Business Furniture SolutionsThere is a whole list of business furniture that must be kept in mind before buying what you need. Choose solutions that are best for your working environment and select every item carefully keeping in mind its purpose and usage....Best Businesses to Start in a Recession August 11, 2010Choosing to start a business in a recession can be risky if you don't know what you are doing. Do your research, information and do some planning. Some small businesses thrive during a difficult economy. These businesses are called counter-cyclical businesses...Getting Money to Start a Business July 1, 2010Getting money to start a business will be tough in a down economy, but not impossible. Depending on the type of business and the amount needed, you may need to acquire...What Home Business Should I Start - Service, Retail, or Product Based Feb 3, 2010Any good home business begins with a good idea. As you brainstorm, plan and prepare to start your new home-based business, you must first understand what kind of business...How to Run a Business from Home Jan 13, 2010Below are 9 helpful suggestions from other business savy entrepreneurs on how to run a business from home ...Start-Up a New Business Jan 7, 2010Over the past 15 years, small business has generated 64% of America's net new jobs, and more than half of American nonfarm GDP is created by small business. Why not start up a new business?...How to Fund a Start-Up Business Oct 13, 2009Here are some sources for funding a small-business for start-up business owners ...The Basics of Starting a Business Sept 3, 2009You’ve made the huge decision to start a business. Most efforts to start a business end in failure, but with the right business idea you can become successful. ...How to Start a Profitable Home Based Business August 17, 2009More and more people are investigating the possibilities of starting their own extra-income profitable home based business. Most of these part-time endeavors...5 Steps to Building a Successful Niche Business August 10, 2009Building a successful niche business with products and services can have the potential to generate big bucks if they capture the hearts, minds and wallets of a...10 Worst Business Partners For Your Start-Up July 3, 2009Business Partnerships can turn out to be a blessing or a curse. For every thriving partnership featured in Entrepreneur, ...How to Build a Family Business May 25, 2009More than 80% of businesses in America are considered family businesses, according to the Cox Family Enterprise Center. But as Professor ...Selecting Your Type of Business May 20, 2009Indeed starting a business and what type of business is one of the most challenging tasks anyone can undertake. One must balance ...Right time to start a business? March 29, 2009I am in my 20s and recently laid off. I have always been interested in starting a business, but with the state of the economy, I am a little unsure ...Start a Business in a Recession March 24, 2009Believe it or not but some entrepreneurs are actually looking to start a business in these economic times. ...How to Start a Start-upAndy McLoughlin spoke a little while ago about how he started a business, Huddle.net, from a simple business idea in a pub to a fully working new business... |
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