A Family Business for Everyone
Starting a family business is a desirable goal for many parents. However, few families pursue their goals because they convince themselves that business isn’t for everyone. Looking back at family history, parents and grandparents have often considered the homestead as a family business.
Consider the farm, ranch or home we all grew up in. Of course farms and ranches require laborers, but what about our home? If you ever did chores, you participated in the family affairs. Growing up in the 60’s and 70’s, there was even a television show, Family Affair.
If you’ve ever dreamt of starting your own business, could you think of any business that would be better than having your own private, family bank?
The Family Legacy
Just last century it was not uncommon for farms to be owned and left as a family legacy. The grandparents worked on the farm, raised the children there and left it, along with their cherished memories to their family.
Today, the farm element for families has nearly disappeared. Although there are certainly living memories, the passing of the family farm as wealth has all but gone away.
Fortunately, the family legacy can be preserved and passed on in a manner that is thoughtful and pleasing to everyone. A simple way to ensure your family legacy is with life insurance.
With a properly designed estate plan, families can leave a legacy of love that will live on for generations.
Business Resources
When pursuing an ambition to start a business, consider available resources.
- Capital
- Property
- Family
Entrepreneurs need capital. Every business has a need for finance, either to capitalize the operation or to pay expenses. Unfortunately, financial resources can be limited by lending requirements.
Property is perhaps the most important resource for businesses. You’ve heard the important words in real estate, Location, Location, Location.
In today’s world through, a substantial amount of business is conducted online. Many sucessful entrepreneurs started with only a cell phone or laptop.
The phone or home computer could be construed as property. Consider the fact that local munincipalities charge personal property taxes.
Any family is stronger together than divided. One thing that everyone can usually agree on is, a need for money.
Enter the family bank business. Most families have parents and children, which of course can be big or small. Each family member can be conidered a resource.
Even if the family circle is small, one can expand the family by investing in others.
How To Start a Family Bank Business
Just like any business, it takes capital to get started. Private, family banking is a way for families and business owners to use their own capital for financing.
Our capital has a cost, and we should utilize it as such. Having a process for financing can save valuable time and money. Once put in to motion, this banking process can allow families to finance vehicles, fund college, finance real estate and provide capital for business.
Learn more about a family bank business.
Who Is A Family Bank Business For?
Simply put, family banking is for families and business owners that want to finance their major purchases without having to depend on traditional lending resources.
Consider the costs, time and administration of opening and operating a traditional bank. They have to do market research to determine the need, locate property to rent, buy or build, hire and train staff, apply and purchase appropriate charters, and consistently manage the banking operations.
Financial institutions understand banking and depend on interest and fees to fund their expenses. Any family can recover these costs by bringing the banking function under their control.
Privatizing Banking
Privatized banking provides many benefits that are not available through traditional lenders. When entrepreneurs embrace this concept, they can have their money work harder and accomplish multiple goals.
The family bank can be utilized to purchase assets, create wealth and leave a legacy. And, all of this can be done within the family, bypassing outside bank requirements.
Most lenders require collateral, insurance and preferred credit scoring prior to granting a loan. Imagine bypassing these lending requirements and becoming the banker, where you can set the terms.
In closing, starting your own private family banking system, one that you own and control, can be very rewarding.
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