Bring Your Family into Your Business: As the owner of a business with family members involved, it can be tempting to think that getting them involved means selling stock or signing an agreement making them partners in your venture. However, an effective approach would be giving each member appropriate tasks and responsibilities tailored to their abilities as well as appropriate compensation packages that reflect what they’re getting out of being part of your enterprise.
Starting a business without the support of family can be challenging at best. Even if they lack capital to invest, there are still ways to involve your loved ones without placing them at risk or forcing them into uncomfortable situations. Note: if any relative desires being an employee rather than contractor, this should be discussed prior to signing any contracts related to their services.
1) Hold Meetings With Your Family
As most business owners know, holding meetings with your employees is necessary; however, you should also regularly meet with family to discuss what’s going on with the business and where its going. At least quarterly meetings should take place and should take place at a neutral location (not your office).
At these meetings, your goal should be to have an open and honest discussion about your business, its goals and opportunities in the market. Meetings like these with family members should also take place; in fact it may even be advantageous; family members could offer insights that could benefit your venture, or they might spot opportunities that have yet to emerge. Furthermore, regular meetings allow family members to stay up-to-date with what’s going on within your company while giving them an opportunity to ask any pertinent questions they might have about what’s happening within it.
2) Help Train And Mentor Your Employees
Businesses of all types are opting to outsource certain tasks and functions, even if you conduct operations exclusively within their walls. Even so, even employees needing training may require mentorship – this also goes for any contractors hired as you must ensure they perform their task appropriately.
If your family members are willing to work for you, consider assigning tasks requiring extensive training and mentoring. This can be an excellent way to show your gratitude for their involvement while simultaneously showing them just how much knowledge and skills are necessary in running a company.
3) Assign Tasks To Family Members Based On Skill Set
Having family members who are willing to work for you can make life much simpler; but some tasks require knowledge or skills that particular members don’t possess. If there’s a task which needs completion but requires skills that a certain family member doesn’t possess, don’t give them it!
Instead, look for tasks suitable for them. For instance, if you own a software development business and you have an eager family member willing to assist but with no programming knowledge at all – don’t give that person programming tasks! There are plenty of simpler tasks they could complete instead.
4) Create A Benefit Program For Your Employees And Family Members
Every business, even those owned solely or with family, should offer benefits programs to their employees. Offering this can help attract and retain good workers while showing you’re committed to treating everyone fairly.
If your business employs family members, consider expanding its benefits program to reflect this fact. For instance, if each family member has an individual health insurance plan with a $1,000 deductible per person and you wish to show how much you value and appreciate their contribution to your company by increasing this to $2,000. Doing this shows them you value them while simultaneously appreciating all they bring to the table.
5) Create An Employee Stock Ownership Plan(ESOP)
If your family members own stock in your company, they are business partners. However, if you want them to become partners without giving them stock ownership rights directly, consider setting up an employee stock ownership plan (ESOP). An ESOP acts like an insurance trust fund designed to pay out your family members when selling or retiring from business ownership.
Your company could create a fund to purchase stock in its business, while you use this fund as a way to increase family involvement in its operation. Appointing family members as board directors could bring them closer into its workings while regular board meetings allow them to gain more insight into its operations.
Owning a business might make it appear that family engagement opportunities are limited, but there are actually several effective strategies you can employ to bring your relatives into it. From holding family meetings and training programs for employees and relatives alike to assigning tasks according to skill sets based on family memberships – engaging family can make for stronger businesses! With their assistance you can build better businesses.