Family First, But Business Savvy: The Dos and Don’ts of Hiring Family

Family First, But Business Savvy: The Dos and Don’ts of Hiring Family

So you’ve taken the plunge and started your own small business – a venture that likely feels like your baby. And what’s more natural than wanting your family involved in your entrepreneurial adventure? After all, they’ve likely been your biggest cheerleaders (and maybe even secret investors) from day one. But before you hand out matching company polos, let’s delve into the world of hiring family members – a choice that can be a recipe for success or a potential pitfall.

Family: Built-in Support System or Risky Business?

For many small businesses, family members are a goldmine of support, offering everything from bookkeeping help to social media promotion. They might even possess specific skills that perfectly complement your business needs. The question then becomes: should you hire them as official employees? The answer, like most things in life, is “it depends.”

The Salary Conundrum: Love or Leverage?

One tempting advantage of hiring family is the potential for a lower salary. They might be willing to work for less due to the family connection. However, this double-edged sword can cut deep. A discounted salary might lead to a discounted work ethic – a situation where your family member feels less accountable for peak performance. So, if specific experience or expertise is crucial, it might be best to look outside the family circle.

Sales Superstars: Where Family Shines

Hiring a family member for a sales position can be a win-win. They inherently understand your product or service and are likely passionate about your success. Plus, commission-based pay structures create a natural incentive – they get paid based on their performance. Sell more, earn more – a simple formula that benefits both you and your family member.

Fairness is Key: Avoiding Resentment and Building Trust

When hiring family for non-sales roles, ensure their compensation aligns with what you’d offer an external candidate. This fosters a sense of fairness within your company and avoids potential resentment from other employees. Remember, a strong family dynamic is key to a thriving business, and fostering trust through fair treatment is crucial.

Embrace the Help, But Strategize Wisely

There’s no denying that family can be a tremendous asset to a fledgling business. Their support and willingness to roll up their sleeves are invaluable. However, before handing out employee badges, carefully consider the role, compensation, and potential impact on family dynamics. With a little strategic planning, you can leverage the power of family while ensuring your business thrives.

Protecting Your Business: Invest in Peace of Mind

As you build your business, having a solid small business insurance plan in place is essential. Our independent agents offer a variety of customizable plans designed to protect your investment and hard work. Contact us today for a free, no-obligation quote, and get ready to watch your family business blossom!


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

How to Maximize Your Chances of Getting Your Security Deposit Back

Moving Out? Don’t Leave Your Money Behind! Get Your Security Deposit Back Every Time (and Maybe Even Renters Insurance!)

Garage Sale Gold! How to Turn Trash into Treasure (and Cash!)

Don’t Trash It, Sell It! Pro Tips for a Successful Garage Sale (and Extra Cash!)

Don’t Let Your Business Go Up in Smoke! Top 5 Causes of Commercial Fires (and How to Prevent Them)

Commercial Fire Safety: Protect Your Business from the Top Fire Threats (Free Quote Included!)

Taming the Paper Tiger: How to Keep Important Documents Safe

Don’t Let Your Important Documents Become Disaster Snacks! Safe Storage Tips Inside

A Fun Ride Through Auto Racing History (and How to Save on Insurance!)

Need for Speed: A History of Auto Racing in the US (Plus Save on Car Insurance!)

Dive into Safety: Essential Pool Tips for Fun (and Peace of Mind!)

Poolside Paradise or Potential Peril? Top Pool Safety Tips for Families

Presidential Quirks: From Wrestling Champions to Bowling Alleys in the Basement

Don’t just know their policies – Dive into the weird and wonderful world of Presidential Quirks!

So You Want to Be Your Own Boss? A Reality Check for Budding Entrepreneurs

From Dream to Reality: Essential Considerations Before Launching Your Small Business

Fort Knox for Your Family: Why Life Insurance is Your Secret Weapon

Life Insurance: The Unsung Hero of Family Protection (Free Quote!)

Don’t Let Your Drive Turn into a Rage: Chill Tips to Avoid Road Rage

Stay Calm & Cruise: Essential Tips to Avoid Road Rage and Save on Car Insurance