Anyone who has ever worked in retail at any point in their life knows the life of retail is a hard, but rewarding career path. The hours may be long and the customer service may be the most demanding and rewarding part of the job. It takes a certain kind of person to successfully handle a career in retail as it is physically demanding no matter whether you work for a large corporation or a family owned retail business, yet always exciting. Once you add the family-owned dynamic, you have created a need for success to make sure your customers can continue to expect the same quality and service they have come to know and love since your retail business's inception.
1. Do Not Utilize a Family-Only Approach
Family owned businesses are perceived to be about family only. This perception truly does not work in retail businesses. That does not mean your succession plan cannot include training your child to take over the business; however, retail usually requires outside staff. As a result, you cannot allow your staff to think their new boss is less qualified than they are to run the store. Make sure your children have all of the proper training to take your place such that the transition is seamless and all are happy. It is also important to understand that a succession plan from you to your child can create tensions if your successor has a different perception about the business and family member accountability. These tensions usually arise due to poor communication styles and difficulty in both parties articulating their expectations in their family business roles.
To further illustrate this situation, here is a story about one of Hubler’s first clients:
About 30 years ago, a woman who owned a fast food chain with her husband came to us because of an unhealthy dynamic between her and her stepchildren. She was being outvoted on business decisions by her husband and his children, which was causing tension in the business she was trying to run with her husband. His youngest son, about 10 years old, also felt a sense of entitlement and believed he would own the business when he grew up. While that was a possibility, the sense of entitlement was an unhealthy and dysfunctional addition to the business. Hubler worked with this family to set up clear expectations and roles for each family member. This improved the dynamics within this family business and helped them work as a team.
To further illustrate this situation, here is a story about one of Hubler’s first clients:
About 30 years ago, a woman who owned a fast food chain with her husband came to us because of an unhealthy dynamic between her and her stepchildren. She was being outvoted on business decisions by her husband and his children, which was causing tension in the business she was trying to run with her husband. His youngest son, about 10 years old, also felt a sense of entitlement and believed he would own the business when he grew up. While that was a possibility, the sense of entitlement was an unhealthy and dysfunctional addition to the business. Hubler worked with this family to set up clear expectations and roles for each family member. This improved the dynamics within this family business and helped them work as a team.
2. Create a Plan
When you run a retail establishment, you must have a plan in place for not only succession, but training, hiring, inventory, etc. There must be a clear, concise plan that anyone who has access can understand the goals, how things operate, and who to call when the family is not there for any reason. This plan must include how you will choose which of your children will take your place upon retirement or death, as well as the standard business plan items that are necessary to run a successful business for years to come. You must also create a plan that will allow for other succession options, should your children chose to not join the family business.
3. Keep Family and Business Separate
Retail businesses require long days and even longer weeks. When people are working and living together 24 hours a day, 7 days a week, the boundaries can become quite blurry. It is essential to make it a point to take a break from both business and family. Make it a point to connect as a family away from the business and make sure you do not discuss business during this time. The worst thing you can do to keep your business from being successful is to create rifts within the business based on the family dynamic.
Any family business is difficult. Whether you are in retail, the service industry, or the trades, you are taking many risks that could lead to big rewards. However, they could also lead to big problems. To make sure you are taking your family owned business on the path of success, contact the experts at Hubler for Business Families at (612) 375-0640.
Any family business is difficult. Whether you are in retail, the service industry, or the trades, you are taking many risks that could lead to big rewards. However, they could also lead to big problems. To make sure you are taking your family owned business on the path of success, contact the experts at Hubler for Business Families at (612) 375-0640.
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