A guide to starting your family business in Manchester

Starting a family business is a great way to build wealth and leave a legacy for the generations to come.

It is estimated that there are 4.8 million family businesses in the UK, which makes up over 85% of all private sector businesses and contributes around £575 billion to the economy. Depending on your service, running a family business can be quite lucrative – but where do you start?

To reap the benefits of family wealth and values, read our quick guide to starting your family business in Manchester:

Why Manchester?

When it comes to setting up your family business, there is nowhere more suitable than in Manchester. As the powerhouse of the North, Manchester provides a youthful workforce and has an average business turnover of £3.42 billion - the fourth highest in the country.

This means Manchester not only offers a huge customer base but also a detailed support network of other business owners. As a result, the city was rated in the top ten cities to start a business in due to its high-scoring performance across business support, infrastructure, talent, well-being, and business activity.

There is also a lot of government support in Manchester as it is often the recipient of government funding as part of the industrial strategy.

Why start with a family business?

Family businesses are the backbone of the UK economy, offering a series of benefits for those who choose to open one. Family can be some of your biggest supporters so inviting them into business with you could strengthen those familial bonds.

In theory, you can be sure that your business partners and employees share the same values as you, and members are more likely to help out financially. Grandparents can work alongside grandchildren, sharing experiences and helping to strengthen inter-generational bonds. The family storyline also gives you a competitive advantage that other companies may not have. If you’re looking to start a succession business, find lawyers local to Manchester who help guide you through the process of creating succession trusts.

Set boundaries

Though it can be difficult to separate your work and home life, especially when it comes with you to the workplace, finding that balance is essential. Set strict boundaries on keeping your work and personal business separate as not only can this cause burnout for your family, but it will make non-related employees feel left out of making important decisions.

Create a clear hierarchy

Even though it might be difficult to see certain family members as in charge of others but making these decisions ensures your business has a clear structure. Determining the role of each family member will make it clear what responsibilities and duties are whose. Also, knowing who to report to can help minimise conflict.