Business Education

3 Effective Ways to Beat Zoom Fatigue

Family businesses generally operate a bit differently than traditional companies. While many aspects are the same or similar, odd situations occur more often in family businesses. And, that’s due to the fact it’s family and not “strangers” that are part of the day-to-day operations. So, common things in regular business arrangements might be quite different than in a family business. For example, employee compensation. Some family businesses neglect to give their employees pay raises because they are members of the family. In other words, it’s not a common practice, because the business is run by a family, instead of unrelated individuals. Of course, the phenomenon of unconventionality is something that can easily be part of a family business, simply because all the individuals involved are related and feel an obligation and duty to the company.

Family Business Fringe Benefits are Fine, but Not Compensation Replacements

Some family businesses provide their employee relatives with certain fringe benefits. These might be things like extra flexibility with schedules. Or, extra time off for vacations with pay. It could even be things like a company credit card and/or a company vehicle.

The job of operating a family-owned company is often grievously complicated by friction arising from rivalries involving a father and his son, brothers, or other family members who hold positions in the business, or at least derive income from it. Unless the principals face up to their feelings of hostility, the business will suffer and may even die. —Harvard Business Review

While such perks are nice, they do not take the place of compensation. But, it isn’t at all uncommon for the family business head to see such fringe benefits as a replacement for compensation. Since their relative employees enjoy perks, they view this as some type of offset to a raise and reasonable pay. This can create very awkward and sometimes even toxic situations to arise. Moreover, if non-relatives are working in the company, who do receive bumps in pay periodically, this can lead to outright resentment.

How to Talk about Pay Raises in a Family Business

Needless to say, it is a very frustrating and even unfair position to be put into by the very business you so loyally serve. Worse still, is that the longer you let it go on, the more normalized it becomes. And that is definitely something you don’t want to happen. Here is some effective advice for approaching the subject about a raise in pay from your family business:

Determine your actual value. This applies to every employee, and not just individuals working for family businesses. You need to know for certain what your worth is, based on real-world comparisons. Unfortunately, too many employees overestimate their value and therefore, ask too much from their employer. So, be sure to do your research in order to determine your actual value in the workplace, base on your skill sets, experience, position, and responsibilities.
Understand the company’s financial position. Before you bring the subject up, be certain that you know the financial circumstances of the business at large. Don’t assume anything, particularly if you’re not regularly involved in the company’s finances. Guessing and vague ideas will only lead to trouble in one form or another. If you do not have a firm understanding of the business’s financial situation, it might make the entire exercise moot. Or, it could also cause you to become envious and greedy.
Be calm, reasonable, polite, but firm. There’s no question that being in such a set of unfair circumstances will cause you to have any number of negative feelings. Remember these are counterproductive to your end goal. You will get much further by being respectful but firm and by engaging in a good-faith negotiation, rather than starting a family feud. If you let your negative emotions get the best of you, it will only lead to a bad outcome in the short term, and perhaps even ruin your relationship over the long term.

What other suggestions do you have for such a peculiar and awkward situation? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Thinking of Hiring a Family Member for Your Small Business? Here’s Why You Should Think Twice

August 25, 2023 No Comments

Bringing family members into your small business might seem like an appealing idea, often driven by the desire to strengthen family bonds and keep the business within the family circle. It very much seems a win-win situation. At least, on first thought. However, this decision merits careful consideration. While there are undeniable advantages to hiring family, there are also potential pitfalls that can impact both personal relationships and business success. So, read on to explore the pros and cons of hiring family members in your small business. Pros of Hiring Family in Your Small Business There is certainly no question that hiring one or more family members comes with a few enticing benefits. (You can probably think of a few right off the bat.) Here are some of the biggest advantages to bring a family member on board your small business: Shared values and loyalty. Family members usually share your values and vision for the business, resulting in loyalty and dedication. Family members are more likely to be invested in the success of your business than non-family members. They’ll be more likely to work hard and go the extra mile to help the business succeed. Trust and reliability. Family bonds often translate into greater trust and reliability, reducing concerns about employee dishonesty. Plus, you know their strengths and weaknesses, their work ethic, and their commitment to the family. This can make it easier to trust them with important tasks and responsibilities. Flexible work dynamics. Family members might be more willing to work unconventional hours or take on varied responsibilities, contributing to the business’s flexibility. Additionally, hiring a family member can save you money on labor costs. You won’t have to pay them as much as you would a non-family member, and you may be able to arrange a more novel pay structure or compensation package. Another benefit is their personal knowledge of family dynamics. Family employees often understand the nuances of family dynamics, which can be quite advantageous in managing the business together. Cons of Hiring Family in Your Small Business Obviously, as with anything else, working with one or more family members can cause a few headaches. While the good can easily outweigh the bad, there are some things you should think long and hard about before hiring family to work in your small business: Blurred boundaries. Lines between work and family life can blur, leading to conflicts and stress that spill over into both realms. Working with family members can create conflict, especially if there are personality clashes or disagreements about how the business should be run. This can damage your personal relationships and make it difficult to work together effectively. Lack of objectivity. Family dynamics can hinder unbiased decision-making, potentially leading to poor business choices. When you’re working with family members, it can be difficult to be objective. You may be more likely to give them preferential treatment, even if they’re not the best person for the job. Creating unfair perceptions. Non-family employees might perceive favoritism or unequal treatment, affecting team morale. What’s more, it could involve limited skill diversity. Relying solely on family for expertise might limit the diversity of skills in the business. The decision to hire family members in your small business requires careful consideration of both the benefits and challenges. While shared values, loyalty, and trust can be advantageous, the potential for blurred boundaries, lack of objectivity, and conflicts should not be underestimated. Navigating this dynamic successfully requires a balance of clear communication, well-defined roles, and professionalism. Before extending a job offer to a family member, weigh the pros and cons, assess the potential impact on both your business and personal relationships, and establish strategies to manage challenges that might arise. By doing so, you can make an informed decision that serves the best interests of both your small business and your family ties. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

Stress Points Entrepreneurs Should Avoid

May 24, 2017 No Comments

Being an entrepreneur means being able to pursue a dream, to fulfill a passion, and to realize your full potential. It’s also a stressful role, even for the most intelligent and resourceful. Though we like to think of stress as just an inconvenient emotion, it can take a substantial toll on your health. It’s linked to heart disease, obesity, depression, headaches, gastrointestinal problems, and more adverse health conditions. It’s also one of the most common conditions in starting a new venture or continuing to build a business. However, it doesn’t have to get the best of you. Stress Points Entrepreneurs should Avoid Stress is actually a biological response to certain conditions and situations. It consists of releasing hormones, including adrenaline and cortisol, which cause the body to physically and emotionally respond to its environment. In an entrepreneurial role, you’ll have a lot invested, which can include your personal savings, time, and effort. What’s more, you’ll be responsible for managing others. That’s certainly conducive to causing stress and you need to be equipped with the right response to make the right decisions. In the business world, there’s a certain cache attached to being able to soak up all that stress. But people can’t keep putting themselves under a lot of pressure for a long time without consequences. Eventually something’s going to give. —Entrepreneur.com When you’re an employee, you deal with stress but it rises to a whole other level when you are running your own business. After all, it is you that’s “calling the shots,” and you are at the helm of the enterprise. Stop to think about the entire situation and it can be practically paralyzing. You’ll definitely have a lot to deal with when you’re running or starting a business and one of the single biggest challenges to overcome is how you deal with stress. Because of this, you should know the most common stress points and how to cope with them effectively: Capital. Money is essential to business, but there will definitely be times when cash flow is anemic. You should learn to use free and low cost resources when money is lean. For instance, you can pay a freelancer that’s just starting out, or, can take-on a little more personally to keep costs down. Promises. As a business owner, you’ll make promises on a regular basis. When an unexpected event takes shape, it can seriously throw-off your working timeline. When possible, you should rearrange your schedule and revisit your priorities to make good on your promises. Commitments. Alongside promises are your commitments. When starting or running a business, it’s often tempting to fully load your schedule to help build your brand. This can take its toll, so, think about what’s most important and only commit to these. Clients. While clients are the lifeblood of your business, early on, you’ll probably take anyone who comes across your radar. Over the course of running your business, it’s helpful to reexamine which clients are worth the effort and which are making your journey an agonizing proposition. Talent retention. Having talented people on your team is key to success but this comes with a cost. Said cost rises as time goes on and you’ll face one or more moving-on sooner or later. Instead of fretting over the loss, look at it as an opportunity to forge a strategic partnership. Though these are all real and can be large problems, one stress point is particularly painful: the unknown. As the saying goes, “you don’t know what you don’t know.” That however, is true with just about everything in life. Instead of letting it worry you, look at it as a new opportunity to embrace. Even if you fail at this or that, it serves as a lesson learned which helps to make you a better leader. Remember, we learn far more from our failures than our successes because it’s easier to deconstruct. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

How Business Owners can Deal with Bad Managers

February 5, 2021 No Comments

There’s a plethora of advice for how to deal with bad managers — from an employee’s role. But, little is out there about how to deal with a poor manager for business owners. Entrepreneurs rely on a number of other individuals to make things happen. Everyone onboard is supposed to be onboard as a team. Sadly, there are times when a manager’s style is counterproductive to the larger organization. Fortunately, there are some effective ways entrepreneurs can deal with bad managers. Bad Managers Undermine Good Employees You’ve probably heard the old computer software cliche that “garbage in equals garbage out.” Meaning, if the right ingredients aren’t entered, the output will totally reflect its input. This same sentiment goes for your company’s team members. If employees have the right management leadership, their performance will reflect it. However, if that leadership is poor, you’ll get poor results. Bad management can impact employees and a company’s overall operations. Incompetent managers exist, and they can have challenges relating to staff members and keeping them motivated. In addition, substandard supervisors may not be able to balance budgets, increase revenues or capably perform other crucial tasks. —Houston Chronicle Small Business It’s a bit more difficult to manage a manager than it is an ordinary employee. Largely because these individuals are experienced and used to managing others — but not necessarily themselves. So, it’s entirely possible for them not to see their own flaws and shortcomings. If an employee under him or her doesn’t produce the right outcomes, a bad manager believes it’s because of the employee and not himself. Of course, this is circular logic and the situation will only worsen over time. 3 Effective Ways Business Owners can Deal with Bad Managers The good news is there are ways to get a wayward manager back on track. (Or, reform a bad manager into a good steward of their team members.) Here are three effective methods business owners can use to deal with bad managers: Identify their weaknesses. Okay, this goes under the “obvious” category. But, it’s something that simply cannot be ignored. By getting feedback from your employees and observing him or her in their official capacity, you can pinpoint his or her weaknesses (and strengths). Then, work with them to formulate a plan to help them overcome their weaknesses and rely more on their strengths. Don’t be overly critical. Instead, speak about their shortcomings in a transcendental way and emphasize their strongest traits. Always strive to set an example. Here’s another bit of obvious — but absolutely necessary advice — always strive to set an example. After all, if you run the company like the infamously bad side of Steve Jobs (who was reputedly a ruthless and hard-driving boss), expect the same behavior from your manager(s). But, run your company as a benevolent yet firm boss and your manager(s) will most likely follow your cue. When you make a mistake, own up to it and do so honestly and humbly. Give him or her public praise when deserved. This is difficult because it could easily backfire in a number of ways. Still, it’s necessary to bestow praise when and where it is due to encourage others and to foster a sense of unity. Of course, you can’t just praise your manager(s), you must also do the same for your employees. What other suggestions do you have for dealing with bad managers as a business owner? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Effective Ways to Beat Zoom Fatigue

Family Business Fringe Benefits are Fine, but Not Compensation Replacements

How to Talk about Pay Raises in a Family Business

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Thinking of Hiring a Family Member for Your Small Business? Here’s Why You Should Think Twice

Stress Points Entrepreneurs Should Avoid

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