In business, few things can be as stressful as running a company that’s staffed and managed by a mix of family and non-family employees.
The constant juggling of family drama, emotions, and entitlements conflicting with the needs of your non-familial staff can quickly contribute to an extremely volatile company culture.
Luckily, these three factors will help you become an exception—if you’re not one already.
Make Sure They’ve Served Their Time
Many of our clients don’t realize the dangers of hiring a family member until the damage has already been done.
For example, one of our past clients had an issue with their son working for them. While intelligent and talented, he was a menace, striking fear and intimidating the other employees.
He was cancer in the organization, and his mother wept when one of our consultants told her the truth.
Months later, I received a phone call from the father explaining they had let go of their son, and their relationship and business had never been better.
When hiring your family members, those two worlds will converge at some point, and your non-family employees will be caught in the middle.
The only way you can prevent that is by ensuring that the family members you’re considering hiring, or going into business with, have at least three to five years of experience working for someone else in a similar position to what you need.
While they’re there, carefully consider how they contributed to that company, the skill sets they’ve developed and acquired, what their attitudes are like outside of the office, and determine how they will either positively or negatively influence your staff.
Essentially, are they the model employee you would feel comfortable representing you and your business?
By doing so, you can have peace of mind knowing that when they eventually come into the fold, they know what is expected of them and will deliver.
Hold Family Members Accountable
In a family business, the treatment towards family must be no different than the rest of your staff. They must have their own set of deliverables, expectations, and operational roles, and be held accountable.
As an owner, it’s up to you to hold them to higher standards than the rest of the company.
Say, your sibling has been showing up to the office later than they should be. It’s your job to discipline them like any other employee.
Because a member of your staff is related to you doesn’t give them any excuse to be lazy. There are NO HANDOUTS! When you bring a family member to work for you, you may take on the ire of your staff who see them as nothing more than a favor rather than a valuable addition to the team.
In a situation where a family member isn’t keeping up with the pace or striving to deliver their best, then it’s up to you to make the decision to bring someone more qualified into their role or not.
Terminating a family member is the most gut-wrenching decision a business owner can make, but it’s also essential to ensure the health of your organization.
If you’re adamant about not letting your son or daughter go, yet it’s clear the business is suffering, consider putting them on payroll and having them walk away. At the end of the day, it’s easier and less expensive than losing the business altogether.
By holding family accountable, you can keep the company moving forward and avoid family drama.
Plan Your Exit Strategy
If you’re like many business owners we previously worked with, you’re probably planning on someday transitioning ownership to your kids.
If you want to transition the power of the business to any family member, you need to consider the procedures and steps that will ensure a secured transfer.
That means training, education, and hands-on experience building for the person who will ultimately lead your business.
Here are some things to consider before handing over the keys:
Everything Starts With A Family Meeting
Being the owner of a business means you are ready and willing to make sacrifices in your personal, and family life.
That being said, if you have high hopes for your children to take over your business, you better make sure they, and their families, are ready to make these sacrifices.
Bringing the family together to discuss ownership around the kitchen table is the essential first step in preparing your kids for the “Big Chair.”
This lifestyle is not for everyone, and you are doing them, your business, and yourself a disservice if you force anyone into a leadership role.
Square pegs never fit into round holes.
Age Is Irrelevant
There will never be a “right age” for a new business owner—you’re ready when you’re ready.
Successfully preparing your child, and transitioning them into the role of owner, is a massive investment of time and hard work.
If you want to mold your child into a respected leader, start them at the ground level.
Over the course of four or five years, have them work their way through the ranks, from mopping floors to working behind a desk in payroll; show them every part of the company.
Not only will it give them a greater sense of ownership in the long run, but they will earn respect from their peers.
Remember, Take Control
Unlike other small businesses, family-owned companies carry their own set of unique challenges and obstacles.
The family business is a unique and challenging beast. With the right mindset and approach, however, it can be an immensely rewarding experience.
Remember to take control and be the leader your business needs, not the parent your family sees at home. This means being organized, setting goals, and communicating with family members.
By taking control, you can ensure that your family business is successful and prosperous.
