"Interestingly, koi, when put in a fish bowl, will only grow up to three inches. When this same fish is placed in a large tank, it will grow to about nine inches long. In a pond koi can reach lengths of eighteen inches. Amazingly, when placed in a lake, koi can grow to three feet long. The metaphor is obvious. You are limited by how you see the world."
-- Vince Poscente

Tuesday, March 10, 2009

Bad Times = Good Times to Own a Family Business

Dad's laid off, Mom's looking for a job and their are two teenagers in the house texting and spending time playing computer games. Grandma's looking for part time work because of the shrinkage in her 401 K. The wolf's at the door! Maybe its time to look at owning a small family run business? Convenience Stores, Sub Shops, Pizza Shops, Gas Stations, Pubs, dry cleaners etc have long been successful models for a true family owned and run business.

A family owned and operated business is simply one where the family covers the vast majority of the labor costs incurred in running the business. The whole family works and draws a paycheck--the economic value of the business is the sum total of the wages paid to the entire family unit, plus net profit, plus tax benefits from owning a business.

A further advantage is hopefully the family members will be "trusted employees" and employee theft and shrinkage will be minimized, plus the fact that their will usually be an "owners" presence at the business which should result in better customer service, a higher degree of cleanliness, and overall better performance of the business.

This is a model which I have seen "New Americans" use with much success over the years and have often seen them acquire multiple businesses using extended family members (uncles, cousins, etc.) and truly realize the "American Dream."

Remember if you own your own business, you can't be laid off, downsized or have your job shipped out of country. You are the master of your own economic destiny.

There are lot's of opportunities out there for families willing to work--you may have to drag the teenagers away from Facebook and Wi but there are lot's of valuable lessons to be learned from hardwork, made all the more valuable because they are making a real contribution to the family unit.

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Son Isaac on Camel in Tangiers

Son Isaac on Camel in Tangiers
"Sometimes your only available transportation is a leap of faith."-- Margaret Shepard