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 against the needs of your non-familial staff can quickly contribute to an extremely volatile company culture.
Luckily, these 3 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 a cancer in the organization, and his mother wept when one of our consultants told her the truth.
Months later, our COO Lou Mosca received a phone call from the father explaining they let go of their son, and their relationship and business had never been better.
When it comes to hiring your family members, those two worlds will converge at some point, and your non-family employees will be caught in the middle of it.
The only way you can prevent that from happening is by ensuring that the family members you’re considering hiring, or going into business with, have at least 3-5 years of experience working for someone else in a position relatable to what you need.
While they’re there, carefully consider how they contributed to that company, their 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.
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 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.
If a sibling has been showing up to the office later than they should be, it’s your job to discipline them as you would any other employee.
Because a member of your staff is related to you doesn’t give them any excuse to be lazy. 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 paces 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 an essential one when it comes to 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 because of it, 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, you are probably planning on someday transitioning ownership of your business to your kids.
If you want to transition 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 had better make sure they, and their family, are ready to make these sacrifices.
Bringing the family together to discuss the ownership of the organization 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.
Age Is Irrelevant
There is never going to 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 4-5 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 and pride 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 your family members.
By taking control, you can ensure that your family business is successful and prosperous.
