BUSINESS MATTERS. Many small businesses would struggle if it were not for the help of family members. In their own way, each member of the family has an interest in its well-being.

Employing family members does have a negative economic consequence on the greater community. The unpaid wife and children helping out is work that could otherwise be carried out by fully paid card-in employees.

A downside to employing family

However, there is a downside when it comes to employing or being dependent on input from a family member.

It isn’t as easy to discipline, let alone confront and sack a malingering wife, husband or sibling. There is the added likelihood of causing a family rift if you do so.

Try firing a wife or son

If you find an employee with their fingers in the till or not pulling their weight, you can fire them. It is not so easily done when the thief is a family member.

There will also be the likelihood of employees taking advantage of their family position. Family employees are more likely to be malingerers, discipline resistance, truculent or poor timekeepers.

They may not be as hard-working or as focused as they would be if they were employed by a regular card-in-hand employer.

Make it clear from the outset

A family-run business has to work on business principles. These must be inspired and mutually agreed upon by all involved. Running any business has to be a team effort.

The business is the boss

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You are not the boss: the business is the boss. An important point is to remind every team member that they are not working for you; they are working for the business.

The boss is also an employee. Everyone, the boss included, plays by the same rules.

Understand what profit is

A common mistake made by employees, including family members, is to consider each day’s takings as profit. It is not, of course.

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A family member who worked for me glowed with pride when he showed me the day’s takings.

I might have rained on his parade by reminding him that the actual profit after overheads, including salaries, was about 10 per cent of the day’s takings.

For some, such as newsagents, the margins are much lower. Is there an answer? Yes, grin and bear it.

Best Business Quotes: You will get what you want only when you convince your customer that he is going to get what he wants.

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