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How to Make a Family Business Plan

Family Business Plan

Family Business Plan

For many business owners, their business is their baby. I am a firm believer in running a family like a business. Business owners know their goals, how they are going to reach their goals, and how much it is going to cost. So why can’t a family follow the same idea?

It is time to make a family business plan.

What is a family business plan?

A family business plan is a formal statement of family goals and plans for reaching them. The family business plan is 1 paper or vision board that will help the entire family understand the goals and plans for the near and distant future. So let’s get started!

Marketing Plan (Setting goals)

I know typical families do not have products or services to sell but the marketing plan is also a place for setting goals. Some common goals for a family to achieve:

  • Getting out of debt
  • Vacation overseas
  • Learn a foreign language
  • Get married
  • And much more!

The list is endless. People who write down goals have a higher success rate than those who do not. Don’t believe me, check out the Harvard Written Goal Study.

Operation Plan (Action)

Now that you know your goals, how are you going to achieve them? Let’s create an action plan. Each goal needs an action plan. An action plan is a step by step strategy to reach your goal. Anyone can say they want to lose weight, but what steps are you going to take to lose weight? Are you going to go to the gym 3 days a week, cut out carbs from your diet, or attend a boot camp? There are so many ways to reach a goal, you have to choose the way that is right for you and your family. Create SMART goals:

  • S – Specific. Be detailed about your goals. The more detail, the easier to accomplish.
  • M – Measurable. Make sure you can measure your progress. This will give you motivation.
  • A – Attainable. Are you goals within reach? Is your goal to quadruple your salary by next week?
  • R – Realistic. This is similar to attainable. How realistic is your quadrupled salary for next week?
  • T – Time. Set a due date.

Finance Plan (Funding your goals)

So you know your goals and how you are going to achieve them, how are you going to pay for them? Creating a financial plan is exactly like creating a budget.

Read this post about making a budget. (Hint: it comes will a FREE Worksheet)

While making your budget, be sure to include categories for your each of your goals.  This will help you stash away more money into savings or keep track of any additional expenses such as subscriptions or memberships. Keeping track of your goals will let you know when you will achieve them. Yes, this means you will know if you can save up enough money for that vacation to Cancun next summer!

Your family business plan does not need to be 50 pages. It can be 1-page, nothing long, just something so everyone has an understanding of the family goals. Once everyone is on the same page about achieving goals, money conversations should run a bit more smoothly.

Have you created your Family Business Plan?

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