3 Things to Consider When Working for a Family-Run Business

I’ve been an accountant for almost 15 years now and have worked for many different types of companies – from small and medium-sized businesses to public sector and now, large corporations. But I have to tell you, one of my least favourite experiences was with a relatively small family run business. Why? Read on!

Many companies start as small family-run businesses that eventually morph into large, successful conglomerates. But at that smaller stage, things can be a little sticky if you’re an ‘outsider’ being hired to come in.

FAMILY HIERARCHY
In most companies, there is a chain of command – if you’re a manager, you expect to have a certain amount of control and be able to issue tasks to your subordinates … unless they are related to the owner. I went through this situation where my ‘assistant’ thought they were the boss and tried to issue orders to me.

The simple fact is, it’s difficult to discipline someone who works for you if they share DNA with the owner - very difficult, indeed.

GET PROMOTED?
This also brings to mind the possibility of advancing. Obviously, the bigger the company, the more opportunities to advance, but I assure you, if you’re face to face with a family member, who is going to get the job?

As per my previous example, titles may not even matter if you get the job, because siblings know they will be around a lot longer than you. They could also outnumber you if the family is fairly large. You could end up not having very much influence at all!

RELATIVE BENEFITS
Depending on how big the family is, I wouldn’t be surprised how many are actually on payroll … even if they don’t come to work! When I used to do payroll, the owner would come in and scoop up certain family member’s cheques.

One time, my boss was very concerned about expenses. I wanted to tell him, ‘Why don’t you take your brats off payroll?’ I couldn’t really say that … but it would have been nice.

A good friend of mine works at a family-owned distribution company that has so many vehicles, they have their own gas station. Well, it’s not uncommon for family members to drive up and fill their cars with gas. Meanwhile, there is constant pressure for employees to keep the fuels costs down.

Now, not all family businesses are bad – there are clearly many that thrive and prosper, but I’m thinking in terms of being an employee at one of them.

Would I do it again? Probably not – but I would consider a few things before I entirely discounted a position in a family-run business:

• Size of the company - the bigger the company, the greater likelihood that normal, coherent systems are present. Family members may not be able to provide as much influence as there could be other shareholders.
• Size of the Family - the bigger the family, the greater possibility that many are taking ‘perks’ out of the company, putting an upward pressure on company expenses. This may not leave much for employees and does not make for a fun working environment.
• How many years in business? - again, the longer they’ve been around, the more likely that they’re organized.

Anyways, getting along with my own family can be challenging at the best of times. I'm not sure I'd want to work with someone else's family.

Photo credit:freeparking

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