Another potential issue is the issues involved with taking time off, hiring and firing, and basic human resources issues. Family owned businesses do not always adhere to the norms of the general business world. First, many families choose to hire family members and friends to aid in the daily functions of the business. This should be avoided when possible. However, it does still occur regularly. When hiring family and friends to be employees, the expectations must be clearly stated. Your employees must know where they stand with vacations, benefits, and even their employment status. If they do not fulfill their work responsibilities, you may be left with the uncomfortable choice of having to fire a family member or friend. You must be prepared to address all of the issues – including the awkward family dinners. Remember, just because the employee is family does not mean the employee can get away with murder.
Owning a family business requires intensive planning and clear boundaries. Issues can arise in any business. However, when you leave the business for the evening, you generally do not have to see that person until the next work day. This is not always true for family owned businesses. However, the benefit of entering into this type of business is that you know you can trust your business partners. After all, you will have to live with each other! To learn more about setting up a family owned business and creating a plan for the future, contact the experts at Hubler for Business Families at (612) 375-0640.