BUSINESS:
Bringing family into the business?
Some practical principles for success
Many people have a rosetinted view of bringing family into their business. It can work well, but it can also fracture family relationships and have great employees tune-out of the business. Let’s look at some common pitfalls to avoid.
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someone into the business to do a job or build a career? People have often joined a family business to fill a temporary need; years pass, and they find that they have added little to their competencies and capabilities. Ask yourself – “Would I take this job, and where would this job take me?” •
a son into the business with substance abuse issues, staff felt unsafe and started leaving. Ask yourself “Will this issue be solved by working in the business?”
at the end of the day, and good morning the next be together at a birthday dinner that night, and a wedding on the weekend. Not all domestic arrangements survive. Family business relationships can be a source of strength, but they can also suffocate and sour relationships. So, to the basics. When considering bringing a family member into the business can you answer each of these questions? As a family member considering joining the enterprise, can you also answer these questions? •
Can the business afford the cost? Too many family businesses rely on cheap family labour to prop up businesses that are no longer sustainable. Once in the business it’s hard to leave – I have heard people say, “I can’t leave, or my dad will lose his livelihood.” Ask yourself – “Would I employ someone to do this job?”
4 l Covisor y Conn ec t Ma gazin e
Am I creating a job for a family member that has other issues? – When a business owner brought
For most working relationships, we say goodnight business day. In family businesses we might also
Does the job have prospects? Are you bringing
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What will the staff working within the business think? Sometimes there is an expectation that family will join the business; however, ambitious staff may leave, and talent may not consider joining if they see that to get ahead you need to be part of the clan. Ask yourself “Will this increase the talent pool?”
These questions highlight the views of the participants, but let’s look forward at the question from the perspective of building a business that has value, and that a family member will be a strength to join.
Principle One – Have a plan for the business, and stick to it If your goal is to keep the business in the family, plan for it.
