As someone who is considering opportunities for a new business you have been invited to produce a Family Business Plan based on your ideas to the Ministry of Trade and Entrepreneurship regarding the feasibility of the proposed new venture. You should aim to make plan interesting and engaging, without losing sight of the fact that the ministry is seeking a professional business plan about the proposed new ideas. Your analysis should thoroughly illustrate and document a pressing market need that could be solved with a high technology good or service.

Discuss the following in details:

• Executive Summary
• Family Involvement Analysis

• Objectives and goals of the business
• Project/Product/Solution e.g. product range and product line
• Market Needs e.g. segments of the market
• Customer Value Proposition (CVP) e.g. the offer to the customer
• Competitiveness (The number of competitors in the industry and how they compete)
• Unfair Advantage (Products, services or connections that are not easily imitated )
• Marketing Strategies (Marketing Mix, Trade Promotion and Consumer Promotion)
• Business Model (Porters Model) and SWOT analysis
• Funding Plan (Budgets should also be included)
• Financial Plan (Break-Even Analysis with Projected Funds Flow Statement)
• Financial Ratios e.g. Return on Investment (ROI)
• Summary Call to Action
• Incorporate these family business elements in you business plan report wherever necessary:
• Determine the Role of Each Family Member
• Every member of the business needs to have a defined role with set duties and responsibilities. Choose the roles according to skills and background as well as weaknesses. Its useful to have a hierarchy of positions to ensure each person knows who to report to this can minimize conflict.
• Set Out Guidelines for Running the Business
• It can be difficult to make the transition from family members to business partners. Laying out clear guidelines will help tremendously.
• For one thing, you need to make sure that everyone separates business matters from family issues. For example, a younger family member may turn out to have excellent leadership skills and be a great choice for a manager. Keeping personal relationships out of business will avoid resentment.
• Also make sure to dedicate time to spend as a family and avoid talking about business at these times. After all, you want those who decided not to join the business to still feel as much a part of the family as ever.
• Talk About Risk
• Starting a business is always risky. Theres a chance that your venture will fail and youll lose your investment. Discuss this with all the family members who want to invest in the business and make sure they are willing to take the risk.
• Decide on Workloads
• At the beginning, working a family business will be far harder than being an employee at an established company. Youll need to work long hours, put the business before many other commitments, and spend less time with partners or children who are not part of the business. Youll do all this while earning less than youre likely used to. Family members need to be aware of this and be willing to make the necessary sacrifices.
• Discuss Compensation and Ownership
• Youll need to agree from the start how much youll compensate each employee. You may pay a salary, use hourly wages, or give family members a certain share of the profits. You could even use a combination of these. Whatever you do, youll need to confirm your choice is in accordance with state wage laws.
• In addition to payment, you must agree how much of the business each family member owns (if any). This will include the percentage they receive if you sell the business. It will also determine voting rights when deciding what direction your company will take in the future.
• Create Opportunities for Growth
• Just like when working for any other company, team members will want to have the chance to grow in their careers. Talk to each individual in turn to find out about their goals and how your business can provide the right opportunities.
• Specify Exit and Succession Plans
• It is equally possible that a family may decide to leave the business to pursue something else. You need to specify what will happen in this eventuality and what compensation the person will receive, particularly if the employee has a stake in the company. In addition, the founders of the business are going to retire at some point. From the start, lay out the terms for handing over the business to someone else.