Tips on Hiring Family Members for Your Business

Cutout paper chain family with the protection of cupped hands, concept for security and care
Just my thoughts for today on how best to hire family members to work in your business.

I run a family business and wanted to share with you some tips on hiring and employing family members.

First, not all family members are well suited to work in your business. I know this from experience. Before you hire a sister, brother, son or daughter, consider first if this is best for your family relationship. In some cases it may hurt the relationship and it may be better to just stay as family than to move to a family and employee relationship.

I personally found that I was able to have a better employer/employee relationship with my children than I was able to have with my sisters.

If you do decide to hire a family member make sure you do the following:

  1. Make sure you are not just hiring just for charity.
  2. Set clear standards of your expectations.
  3. Create a backup coverage plan.
  4. If they do not work out, let them go early.
  5. Pay generously.
  6. Make sure their hiring makes sense for your business.

Now some details on the list above.

On creating a backup plan, when you hire a family member, you will typically be more generous when problems come up then you would be with a typical employee. For example, I employee my college kids, I have a backup plan in place for exam week so I do not need them or expect them to work that week. If they miss work for me, I keep a backup library of writing things to use if they are busy at school and miss one of my deadlines. It takes the pressure off of them and me and the just take a hit in pay and I move on with my week. There’s no stress or anger on my part when they miss a deadline. For them, it is a choice – get paid or not.

On letting go early, if you feel that the employee/employer relationship is not working or is causing stress in your family, you have two choices. You can suck it up and consider the employment as charity and don’t let missed deadlines and inattention cause you stress. Or let the person go with the understanding that it simply did not work out, and you prefer and value a strong family relationship, rather than an employer/employee relationship. From my experience, the longer you let a situation get under your skin, if expectations are not met and you allow that family member to not meet expectations, the more difficult and problematic the separation will be when you are finally forced to let them go.

On paying generously, I have found that this is important as the family employee will talk with other family members. If it appears to them that you are making loads of money off their work and they are not paid generously, they will grouch behind your back and other family members may judge your actions without knowing or understanding. Pay more and better and you come out looking like a hero. Family harmony and your reputation in the family is worth the extra money you may pay to employ a family member.

I have found in some cases that employing a son or daughter can be a lifeline for them – to generate income they need and the opportunity to build marketable skills. For me, I am able to get quality help that I need as long as I keep a very strict separation between being a parent and employer.

I have had much more trouble employing my sisters. I think that some of this is due to relationship dynamics. Children will naturally be more able to submit to your plans than your own siblings who may interpret the new working relationship as a threat to their own power in family dynamics.

Just my thoughts for today. Feel free to share your own experience below by clicking comments.

“Just Nancy” – Strategies for Success

Young Man In Graduation Gown Holding Certificate On Green Background

This month has been a month of changes for my team who also happens to be my family. In fact, my entire family works in my business now. My husband is our IT guy and proofreader and all four of our children work for the business in many different categories.

My assistant and my oldest son just graduated from college on Saturday with a semester grade point average of 3.8 and cumulative GPA of 3.017. That is excellent work for an older (mid 20 year old) student who was not successful in college the first year and then took a four year break. With a crushing schedule his senior year and intensive capstone project now completed, we are proud that he has achieved his goal and now ready for a career on his own.

As my administrative assistant and AdWords assistant, Chris will be phasing out his service with my firm and launching into his own new career. I am very excited for him!

My other three kids, triplets, have completed their first years at college with GPAs ranging from 3.8 to 3.1 for the year. They will be cycling in to take on more job responsibilities this summer gearing up to learn more and do more for my  business.

My words of wisdom for young people and their adult mentors is that motivating, boosting, and pushing kids is key to their success. Help them to understand that a GPA determines their employability and that it is a real discriminator is important.  They would like to believe otherwise.

Dig a deep hole, with a low GPA because they have not been serious about school, and it may take them three years to dig out. Get under a 3.0 and their resume may not even make it to the hiring manager’s desk when they start looking for a job after graduation.

My younger kids are already seeing that to get an internship, you’d better have a 3.2 to 3.8 GPA to even be considered.

The bottom-line is to not be a helicopter parent or mentor, but to demand accountability and encourage good and early study habits at college. Lay down the law if you are paying for college that bad grades really mean they won’t go back but need to take a break and work as a cashier or waiter for a few years to gain maturity. These may be some of the hardest decisions you as a parent may make, but will benefit your kids and better prepare them for future employment.

Congratulations to all college graduates and we are wishing you much success in your future endeavors.

Why I Love the Amazon Experience

Nancy McCord
“Just Nancy” – My Point of View for Today.

I love Amazon, but I think my husband loves it more than I do as he shops more. We have been Amazon Prime Members for years and I have used a Kindle Fire since they were first launched.

We are an Amazon family and our kids each have Amazon Prime Student accounts and I just bought 4 Amazon Fire tablets for family members due to the fabulous Amazon experience and ease of use with integrated books, music, apps, and shopping. I guess you could say that our family is an Amazon advocate.

What is it that makes the Amazon Experience so great?

  1. Ease of use.
  2. Integration of desktop account management and integration with Kindle Fire.
  3. Exceptional customer service that shine when there are problems; infrequent as they are – hey it’s life.
  4. One stop shopping experience, due to my shopping habits, Amazon is typically the place I will start a purchase.
  5. Free shipping with same day or two day shipping from the Amazon Prime Membership.

What can you learn from Amazon to improve the experience on your own website and earn advocates.

  1. Free shipping will make you stand out from competitors.
  2. Exceptional customer service that is easily reachable when a consumer has an issue. The ability to phone and talk to a real person is very important.
  3. Ease of shopping experience across all devices is super important.
  4. Have a wide selection of products that meet consumer needs at competitive prices.
  5. Excellent results with every purchase – are you consistent in delivering?

Now it’s time to think about what you deliver when it comes to your own services in  your own industry. Do you provide an experience and results that makes your own customers become your advocates?

Find out what our own customers say about their experience with us.

Tips to Opening a New Business

Nancy McCord
Nancy McCord – has moved, feel her pain!

I have to say after what I have been through in the last three months in closing my Maryland LLC and reorganizing into a Virginia LLLC, that there is really room for a business concierge service to help business owners navigate the process.

It is hard to know exactly what to do and incredibly stressful to navigation the Federal, local and State hurdles to be properly and legally set up. I would have paid for a service to help me or hold my hand through the process. But as there does not appear to be a great resource, I will share some of the information that I have discovered.

Set Up Your Entity
1. Use MyCorporation.com for your setup, but make sure you make the decision from your own research on what is best for your needs. My Corporation has made it very easy for me to get my State LLC and even got my new Federal EIN.

2. They do not get the state payroll tax or state unemployment numbers for you. (I wish they did.)

3. Plan on this taking about a week or less.

Get a Local Business License
Okay, here’s where is starts to get time consuming but let me demystify this for you. One you need a business license to operate even if you have a home office. Typically you need to go to that office first and get papers, they you will go to the local zoning office and then pay there for them to review the zoning on your office location. Make sure you take all your business entity papers with you when you go.

So two stops and typically one payment. Take a check book with you. I was able to get my business license the same day and got the final zoning approval in about 10 days.

You need all this done before you even go to the bank to set up a checking account.

Save a morning to get these steps done.

Get a Local Business Checking Account
You’ll need just about every paper you can think of. It is best to make copies in advance so very important organization papers are not jumbled up or lost by your bank photocopying your records.

Make sure you take your business license. You won’t need your zoning permit. Also take your organization papers and personal identification.

Plan on being at the bank for about one to two hours. You should be able to leave with a new business checking and savings account as well as online access to your money.

Understand that some banks, I did run into this, will hold deposits for 10 days for new accounts so make sure you have access to money during this period. I recommend putting a portion into your new account or paying to take cashier or certified checks for deposit as these will only be put on hold for three days.

After your account is about 30 days old your bank will not hold your money so long. Now for me my money I deposit one day is available the next, but my first deposit was help 10 full days really putting me into a jam.

Call or Get Online and Set up State Withholding and Unemployment Accounts
If you will have employees you need to take care of business before hiring as there is sometimes a delay. Most states allow you to apply for a payroll tax withholding account online. Some will give you a number right away online and others will regular mail it to your address on file. Plan on about a one week delay.

For unemployment, you may get a number right away and in other cases may have to wait several weeks to get one. Virginia where I am does not even give you a number until you reach a threshold.

Plan ahead before you hire to have this in place. Even before you hire though if you have numbers you’ll have to file a zero dollar return. Make sure you know the dates your tax reports are due to prevent a penalty.

Check Insurance Requirements
You may find out that you need special insurance if you hire employees. I have to have Workers Compensation Insurance. It costs me under $300 a year for coverage, but took over two weeks to get it for my business. I had to call several agents to check price. Insureon is a great place to check out. Through them I am using The Hartford for my insurance.

That’s all the super important stuff that you need to know and do to open a business. I found this all out by trial and error and hours on the phone. Hopefully this blog post will help you to save some time and at least know what needs to be done to lower your stress level.