Family business owners worry about unhappy cousins
10 posts across 4 communities in the last 60 days; 60% from r/smallbusiness.
“Sell the business. If he can buy it, let him. Otherwise let his entitlement be someone else’s problem. This is like the people who think that because they have been paying some small rent in their girlfriend or boyfriend’s home, that means they should have that much in equity in…”
“I have been working for my Uncle's (through marriage) company for over 10 years. My Uncle is about 70 years old. Yes it pays well, but it is disturbing my peace at work and at home, and is getting to the point of making me sick to the stomach to go to work in the morning. It is…”
“Just found this subreddit today and figured I'd try and ask for some advice. I'm 19 years old, my dad had bought a shop in a neighbouring town to which myself, my brothers and him have been working at for the past 6 or so months. (We do get paid, my dad insisted). It's a…”
Several posts revolve around the challenge of managing family members in a small business. Users suggest options like selling the business, replacing the employee, or increasing pay to retain them, highlighting the emotional and financial complexities of these situations.
SOURCES (22)
“I have been working for my Uncle's (through marriage) company for over 10 years. My Uncle is about 70 years old. Yes it pays well, but it is disturbing my peace at work and at home, and is getting to the point of making me…”
“Just found this subreddit today and figured I'd try and ask for some advice. I'm 19 years old, my dad had bought a shop in a neighbouring town to which myself, my brothers and him have been working at for the past 6 or so months. (We do get paid, my dad insisted). It's a mechanical shop, to which my dad and brothers repair all sorts of things (Cars, machinery, farm equipment etc), as well as wielding and metal work. I have no qualifications myself, and isn't really something I”
“Without detail and coming from an individual who has worked 20+ years in my family business... along side, under, managed family members. Don't. [re: Family Trying To Join/Copy Your Business]”
“Obviously he used you. It was already planned from his side to make you join and eventually quit . He just didn’t want to take the responsibility of quitting the family business and lured you with fake hopes to make you continue the business when he’s done. That’s my interpretation based off what you described”
“My family owns a grocery store/restaurant and Event center business. Being in the family business is tough. I don’t know how to deal with the constant stress and constant stress around the family. If I decide to leave what are even my options? I know it might sound like a stupid question but I don’t know honestly what I could do at this point. submitted by /u/Ironhide05 [link] [comments]”
“I 20M Currently in my last year of graduation (bba) and i was planning for mba afterwards. So giving you basic overview of me and my family business, my family owns 2 shops in my town one is managed by my grand father another one is by my father now my grandfather he wants to quit and want to get retired and he's asking me to leave the education and take care of his shop now I want to do a production in sanitary pads and kids diapers(we sell it in our shop as retail) I want to go into produc”
“Try to offer the same opportunities to your kids what your father passed to you. Men don’t work for themselves. They work for their families and their children.”
“Hire 2 more high end employees to split you and your sisters work between 4 people. Alternate vacations with your sister so one of you is always in the office or available. Take a week long vacation every 8 to 12 weeks and be grateful for what you have. There are a lot of us that work more hours than you, are around your age and do very good, but couldn’t “retire” to a fun job in 3 years and live off income earned before 40. Be very grateful for what your dad has built (with you and your sisters”
“Trying to "downsize" the family biz while my dad was alive would have created huge conflict due to his emotional attachment to the biz, so I just let it ride until he died (no, I wasn't eagerly "waiting" for him to die - I just let nature take its course). Did I sacrifice my "best years" with this strategy? No, not really. I had worked long enough for others to understand how privileged I was when I joined the family biz in a senior role. Note: taking good healt”
“If the family starts being seen shopping at the competitor's store, it might sell the idea that somebody else took over and the family has a lot of resentment over it. If the family keeps a consistent story, customers might return just to spite them.”
“When things involve money, relationships can go sour real fast. And with a family member, you are always in a dilemma whether to be strict or lenient.”
“1) first of all, there is no: “how does this typically work?” It’s always unique, to each situation. 2) it only works when both parties are ready for the transition. From what little you shared, I assume your father is not yet ready for the transition. I assume you feel you are ready. What’s the objective view on this about the readiness of you both? 3) if and when you both are ready, a solution can be found. I suspect your first reaction might be to think my message is not helpful as it doesn’t”
“I could never find a person to replace me or my partners. Just wasn't going to happen within our niche. The fact that you have a family member who can run it is a very nice luxury if it got you to Fat. The answer is always more money and to respect them. Just pay him more.”
“What's wrong with profit sharing? That's a good incentive. Having some equity and with it ownership and sense or responsibility does not imply "partner", let alone "equal partner". Equity does not require voting rights. It is fairly normal in the tech world I am in that employees of public or young private companies receive part of their pay in stock. How this can be done: 10% pay raise along with a program that allows him to be receive 20% of his paycheck in the form”
“Sell the business. If he can buy it, let him. Otherwise let his entitlement be someone else’s problem. This is like the people who think that because they have been paying some small rent in their girlfriend or boyfriend’s home, that means they should have that much in equity in the home. They didn’t think the same when they had been paying a much higher rent to a landlord who is a near stranger to them. Guess I’ve been spending too much time on AITA and the relationship subs.”
“He’s worth whatever price he or you walk away at. Don’t give equity away ever. Pay him what he’s worth not to lose. If he goes you retrain someone else at your expense of time and money. No one is indispensable including you.”
“Thank you all for reading. It’s all really helpful. Thank you for reminding me that he is loyal.”
“Hi, Would love to hear how other families have navigated this kind of situation. We have a small business with extended family as staff. My cousin has been with us for just shy of 10yrs. We’ve been operating for 25yrs and worked our asses off for the first 15yrs. We now work part time, fat fire and living a more extravagant lifestyle. Cousin became our manager and runs the physical operation side of our business. While we are still working, we are also travelling more and bought a new car - whic”
“Candidly, it doesn't even sound like he should be a manager. If he has assets you could sell the business to him or do an earn out. Or you could replace him with someone more talented and less complicated. Or role with it until he quits but that may also cost you the relationship.”