Running a family business
can get messy at times. Following are a few tips that will help you avoid
arguments and resulting business disruption:
• Senior family members
should work closely with others in the family to ensure they have the chance to
assume responsibilities that interest and challenge them.
• Family members should
become involved in the family business at the earliest age possible, allowing
them to grow naturally into the positions for which their education and interests
best suit them.
• Don’t pressure your
children to work in the family dealership. They should enter the business only
if that’s what they really want.
• Senior family members
should continually monitor younger members to see when they are ready to take
on major responsibilities.
• Give younger family
members the ability to make some decisions.
• When jealousy or arguments
develop between family members, address them quickly.
• Don’t treat non-family
employees like outsiders.
• By the time they reach
their sixties, senior members should prepare for their eventual exit from the
company by consulting with attorneys experienced in estate planning and
business succession.
And, always keep in mind the
following pros and cons of family businesses:
• Dedication. Relatives
often think of the company as an extension of the family.
• Familiarity. You know
family members well, so you can select the best position for them and train
them quickly.
• Financials. Your
dealership can expense employee salaries. And, if those employees are under 18
and your dealership is unincorporated, you don’t have to set aside payroll
taxes for them.
Cons:
• Entitlement. A relative
may take advantage of his or her family status.
• Morale issues. Your other
employees may see the hiring as nepotism, especially if the family member is
given a preferred position without having the appropriate experience or
training.
• Blurred lines. Family
problems may be brought into the workplace.
Here are three strategies to
manage the downsides:
1. Make sure that the
relatives you’re hiring really have the skills and experience for the job.
2. Write a detailed job
description and make it clear that if the relative doesn’t perform as expected,
he or she will be fired.
3. Make it clear at the time
of hiring that your relative’s job performance will be reviewed during the
probationary period by a group of managers or employees. This will take you off
the hook as the sole decision maker.
- Source: Tire Review
Business Toolbox