Running a family businesscan get messy at times. Following are a few tips that will help you avoidarguments and resulting business disruption:
• Senior family membersshould work closely with others in the family to ensure they have the chance toassume responsibilities that interest and challenge them.
• Family members shouldbecome involved in the family business at the earliest age possible, allowingthem to grow naturally into the positions for which their education and interestsbest suit them.
• Don’t pressure yourchildren to work in the family dealership. They should enter the business onlyif that’s what they really want.
• Senior family membersshould continually monitor younger members to see when they are ready to takeon major responsibilities.
• Give younger familymembers the ability to make some decisions.
• When jealousy or argumentsdevelop between family members, address them quickly.
• Don’t treat non-familyemployees like outsiders.
• By the time they reachtheir sixties, senior members should prepare for their eventual exit from thecompany by consulting with attorneys experienced in estate planning andbusiness succession.
And, always keep in mind thefollowing pros and cons of family businesses:
• Dedication. Relativesoften think of the company as an extension of the family.
• Familiarity. You knowfamily members well, so you can select the best position for them and trainthem quickly.
• Financials. Yourdealership can expense employee salaries. And, if those employees are under 18and your dealership is unincorporated, you don’t have to set aside payrolltaxes for them.
Cons:
• Entitlement. A relativemay take advantage of his or her family status.
• Morale issues. Your otheremployees may see the hiring as nepotism, especially if the family member isgiven a preferred position without having the appropriate experience ortraining.
• Blurred lines. Familyproblems may be brought into the workplace.
Here are three strategies tomanage the downsides:
1. Make sure that therelatives you’re hiring really have the skills and experience for the job.
2. Write a detailed jobdescription 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 timeof hiring that your relative’s job performance will be reviewed during theprobationary period by a group of managers or employees. This will take you offthe hook as the sole decision maker.
– Source: Tire ReviewBusiness Toolbox
