A family business is an institution where multiple generations of a family are involved, either by marriage or blood, or by adoption or common-law, that influences the family’s decision-making on behalf of the business, where decisions are affected by multiple generations of members who share the same blood, or heritage, or commitment to the business’s vision. In business terms, the term family business can apply to any entity that exists to facilitate or create a family-owned business. Examples include privately held franchises, partnerships, and similar arrangements. The extent of family involvement and control varies across these arrangements, depending on the structure and model of the model.

Family businesses come in many shapes and sizes, but all share certain characteristics. For example, most family businesses are established by one person – usually the oldest child of the family. Often, the children of one generation to work in the business full-time and also take care of day-to-day family chores. As well, nearly all family businesses are owned and operated by the same people – usually the children of one generation still live in the home, and share in the decisions and power of that family. Also, most family businesses exist in regions that share a common culture and heritage.

Family businesses are particularly relevant in today’s economic climate. The explosion of social media (such as Facebook, Twitter, YouTube, and LinkedIn) has opened up a new avenue for connecting members of extended families that previously did not have frequent opportunities for socialization. In addition, many people are sharing videos and images, turning family members into digital “one-way” advocates, whose voice and opinions are being heard around the world. Some family businesses may use social media to foster these relationships and provide a venue through which members can express their unique viewpoint. However, most family businesses are more than simply providing platforms through which conversations can occur.

Many companies are using family business ideas to build stronger and closer bonds among family members. For example, a fitness company might require family members to become “seasoned” members before they can purchase any equipment or use certain workout routines. This provides an environment where each family member is aware of the investment and potential benefits of his or her membership. The family members benefit from the experience as well, as they learn how others outside their circle are experiencing similar situations. By providing an opportunity for socialization and camaraderie, the company is able to strengthen those bonds.

While many family businesses exist, there are some that are geared towards specific family relations. For example, real estate companies often have an apprenticeship program that includes one or more apprentices from each of the main branches. Typically, at least one family member is assigned to a new apprentice on a consistent basis, providing an experienced professional who is ready to be placed in management should the time arise. In addition, some real estate companies provide complimentary seminars to current and new employees that allow those with family relationships to share information and experiences, helping to further develop those relationships.

Today’s small businesses face unique obstacles that they once did not. Many are faced with the issue of increasing costs and dwindling profits as competition from other companies increases and the need to reduce costs cuts into profit margins. Other concerns are social media usage, which has been blamed for the rise of online harassment and attacks directed at employees and customers. As more businesses attempt to reduce costs by decreasing overhead and/or laying off employees, family business ideas that emphasize the importance of maintaining strong social media presence may prove beneficial. Companies that embrace these changes face new challenges, but they also open new, exciting doors for the people involved.