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Family Business Issues
#1
In reading the thread "Being sick blows" started by George Rimel in the main discussion area, the tread veered to "working with Dad." The posts got me thinking of my experiences of working with my parents and the experiences my clients have had of working with family members.

Being in a family business with spouses, siblings, parents, etc. can be great when both the business and the family are strengthened but it can also be terrible when the stresses can tear either the business or the family apart - I know of brothers who haven't spoken in years after an arguement that caused one to leave the business, divorces (even one where they still work together as co-owners but have divorced).

So I thought it might be of interest if I started this thread and perhaps helpful if there was a place these topics could be discussed. What do you think?

Larry Galler
Small Business Greatness Coach
http://www.oneyeartogreatness.com
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#2
Larry as you have stated, it has been both for us.

On the positive you can get commitment and loyalty.

The negative you can get entitlement, favoritism and jealousy.

I've worked with sister inlaw's, uncles, aunts, cousin's, nieces and nephews, even my son.

We have found it's best to keep it on a professional level and despite what your last name is, you have to earn position. It's tough on some, they think because they are family they get immediate position. It's also difficult for those in position, because they are always concerned about disciplining those beneath them when they are family.


We are at a point now where we do not want to hire any immediate family and would only hire family if they had something to bring to the table.

For many years we became the dumping ground for every family misfit or stray that didn't have a job. Yikes

My dad was far too kind, I have no problem being heartless when it comes to the future and success of this business. I will get you
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#3
Wow, good post Rich.


I went into a partnership with my Oldest Brother's wife with my first purchase of a Chem-Dry Franchise.....pretty much means I went into it with both of them.

Seemed like a great idea at the time....it even worked out well for a while.

This is where I learned to run a business the hard way.

I was to do the physical stuff and she was to run the office etc.

I was very hands off the office because I was so busy and so good at the carpet cleaning and customer service part.

Ended up she was stealing from me.....and her husband. Yikes

She ended up screwing over the entire company because for the last part she didn't pay any bills, pocketed money and I ended up owing the IRS over 30 grand YikesYikes

My fault, my brother's fault. But I learned a very valuable lesson....ok, a few lessons.

If you want something done right....be involved.

Don't trust anyone...no matter how much you love them. They can screw up on purpose or accidentally.

Never get into a partnership with anyone....Bad business plan.

Be the "boss"

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#4
Women have no place in business.

They belong in the kitchen.
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#5
Cynthia!!!!

Delete him! Tongue
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#6
Women in the kitchen ARE the boss.

My wife leads me by food. and another thing we can not discuss here.

I love both of those things. And licorice.

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#7
Red or black?

I love red, but black is nasty.
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#8
Red...is not licorice. It is strawberry or cherry or some silly crap.

I like black but not the silly kind twizzlers makes.

Real licorice has a very distinct flavor and has to be made right or it does suck. It is always made in New Zealand.

I have handed people who hate licorice....licorice... and watched as their eyes light up with the exciting news that real licorice is unbeatable.

We have officially hijacked this thread.

Now it might be fun to read.
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#9
LOL

I'll take your word for it, but I prefer the red twizzlers or the red rope from Sam's Club.
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#10
You guys crack me up but I'm grabbing back the thread... because the issue is so important as the posts above by Brian and Richard illustrate.

I'd like to mention, relative to Richard's post that there is a difference of providing jobs for family members and shared ownership of a business when the other owner(s) are family members.

While it might cause family problems, you can fire (or threaten to fire) family members who are employees but it is much more difficult and expensive to sever a shared ownership situation and even more problematic.

The issues raised by both Richard and Brian boil down to the fact that you need to actively manage. That doesn't mean that you need to do everything, but develop a management system and have ways of finding out whether the reports are accurate and this goes for all the shared owners so everyone knows what is happening - no surprises.

Larry Galler
Small Business Greatness Coach
http://www.oneyeartogreatness.com

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#11
When we did hire family, we told them at hiring that "we may be family but at work it is work and there are expectations and if they cannot make the grade don't expect to work here long".

I've canned my share of family and for the most part we still speak, however there are some I will never hold in the same esteem that I did prior to hiring them.

I've actually had the non family employees be more bothered when we fired their relative.

We have to be one of the easiest businesses to work for, if they can't make it with us, they are borderline unemployable. Big Grin
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#12
I use my son's from time to time and I told them just do what I tell you and don't let anything hurt your feelings.

When I say jump.....jump because it's all business.

And the more we goof around on the job the less money we make.

They keep their mouth shut and just do the work.

Afterwards I take them out to eat and thank them before I pay them.

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#13
Rich doesn't have anything on me.


I actually had to repossess a company vehicle from them. Yikes

Long story.
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#14
I'd like to think of a family business in two different ways:
1. When family members work in a business as employees
2. When family members are in some sort of shared ownership - could be equal partners or majority / minority shareholders.

These are completely different issues. Of course the way the owner interacts with family member employees impacts the family dynamic, it is completely different when there is a co-ownership arrangement, it is much more difficult to resolve disputes, and the effects of disputes can be much longer lasting.

Larry Galler
Small Business Greatness Coach
http://www.oneyeartogreatness.com
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#15
My mother, brother and I own the business.we employ some family, a cousin, younger brother, older sister, nephew, and son. Fortunately the majority of employees are not family.
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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#16
You guys must be Catholics.[/code]
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#17
With the last name of Chavez, OF COURSE THEY ARE CATHOLIC!
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#18
I agree.....did you SEE the barn with all the cats??


He needs to hit a meeting.


Rich, admitting you have a problem is the first step.


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#19
He could be a Sephardic Jew.

A lot of you will look that up.
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#20
Phil does that mean horney?
Wink

6-kids in my immediate family. I have 4- of my own with me. Is that too many? YES well, inthe business it can be. Yikes
You never rolled in the hay
Ya never thrown it in four wheel
Climb on up in here, girl
Let me show ya how country feels


"How Country Feels" Randy Houser


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