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“How do you do it?”
“Do what?”
“Your whole family works here and everyone gets along.”
We hear that a lot. Like most companies in the scissor industry, Bonika Shears is a family business. Most of our employees are family members and the rest are close friends of the family. In the past, I worked for a car dealership that was 51% owned by the wife. Most of their six children plus daughter-in-laws worked there as well. I remember weeks when the husband and wife didn’t speak, even though they shared an office. What a mess at work!
Sharpeners ask us about working with their family, especially when their spouse decides to join the sharpening business. Portland, Oregon’s Nose to the Grindstone sharpener, Debbie Finck has a daughter contemplating working with her mom. Here are some suggestions based on what we have learned from trial and error, what works and what doesn’t. These tips may help when you bring family into business.
1. Use each member in his or her area of strengths. This means everyone is doing a task that their talent and personality is best suited for. Because you know your family members so well, you will know their shortcomings. Don’t expect them to change. Work around their shortcomings and give them duties that fit their abilities. Give them extra training in areas of talent and don’t be afraid for them to excel you in some area.
2. Give authority along with responsibility. To allow for creativity, growth and less stress, be as hands off as possible. Keep informed, but don’t interfere unless the problem is so large you cannot live with it. Create a clear chain of command in the work place that may differ from the home. For instance, my daughter Mystie is totally in charge of collections, billing, invoicing and I give her decision making authority on pass due customers and other areas of daily business operations. If I were to step in and make those decisions, her sense of responsibility would also be affected and the work and our relationship would suffer..
3. Set up written expectations and consequences at the beginning. In order to have a frank discussion on how a family member has failed to live up to your expectations, they need to have a clear understanding of their job description from the beginning. Forgiveness is important, but so is the family income. Remember, just because a family member did not work out this year, circumstances and people change and they may become your best partner in later years. My husband Gene and I worked together for a short time in another business I owned in the earlier days of our marriage. We needed a few more years of marriage and are now a great team even though that wasn’t always true in the past.
4. People are more important than things. Don’t let the business cause family friction. Be proactive in attacking potential problems that can cause family disruptions. Face problems of personal issues square on and demand apologies when needed. Working together in the same business is like a catalyst. A family growing closer will grow closer still. A home with problems will have those problems increase.
There is a good article the National Federation of Independent Businesses website, www.nfib.com by Jeffrey Moses Keeping It in the Family: Special Advantages and Disadvantages of Hiring Friends and Relatives. He points out that hiring children has some real financial advantages. If they are under the age of 18 you won’t have to pay payroll taxes plus their pay is deductible to your business. The pay to the children should be appropriate to the age of the child and the work they do. We utilized our children from age twelve up in the business giving them responsibility in managing their lunch money and clothing which were paid out of their business earnings. Check with your accountant for more details.
Written by Bonnie Megowan, Bonika Shears. www.bonika.com
Published in ON THE EDGE publication 2005
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