How to Fire a Family Member You Hired to Work for Your Small Business

How do you fire a family member you hired to work in your small business? It’s a very complicated and stressful situation. You hired your brother-in-law, your cousin, nephew, niece, sister-in-law, or even a sibling. And, you probably did so with a lot of enthusiasm. But, it’s been in one unmitigated disaster after another. He or she just isn’t up to the job. Now, it’s come to the point where it’s hurting your business and you can’t continue on any longer. Fortunately, there are ways to break the bad news. Read on to learn about some of the best ways to fire a family member from a small business.

Training versus Termination

If you have given him or her more direction and a little extra attention, that might have been insufficient. It could be that he or she needs a lot more in order to really be an asset. So, the first step to take is to try and fix what’s broken. Make a prioritized list of what isn’t working and address those things first. Then, mentor him or her according to that list, going one by one.
Many entrepreneurs take pride in their ability to provide jobs for their family members, but it can turn sour quickly when the family member doesn’t perform well. Subsequently, firing a family member can cause a rift between the entrepreneur and relatives who are close to the fired family member. And the entrepreneur may feel guilty if the family member can’t readily find work. —The Business Journals
If this isn’t really applicable to your circumstances, consider moving him or her into a different position. Sometimes, people seem like a really good fit for a particular role and simply can’t do the job up to expectations. This might not even be his or her fault, so turn it into an opportunity to reassign him or her to a position where he or she can thrive. If these two strategies will not work or fail to produce any results, you will have to face the unenviable task of terminating him or her.

Most Effective Strategies for Letting a Family Member Go from a Family Business

Sadly, not every situation will work out as envisioned or intended. Sometimes, it’s just the wrong person for the job and there’s no changing the fact that you cannot pound a square peg into a round hole. Here’s some advice about how to fire a family member from a small business:
  • Be prepared to break the bad news in an appropriate way. Even if this person is driving you crazy, don’t let anger be the emotion that causes you to lose control. First off, you’ll probably say something you’ll regret, and moreover, you might come off so angry that he or she will think you were just incensed and letting off steam. Take some time to reflect on what has occurred and make notes if necessary.
  • Choose the right time and place. The most tactful way to engage is away from the workplace but in private. If you do this at your place of business, there’s too much potential for things to go wrong and become an embarrassing situation in front of your employees. It’s best to have the discussion somewhere else than your business — like a neutral, public place — perhaps a restaurant or park.
  • Be honest but empathetic. You need to be straightforward with him or her but don’t make a big speech. Instead, be brief and direct but empathetic at the same time. Then, give him or her a chance to talk and don’t interrupt. If necessary, repeat your points but don’t belabor them.
  • Remain emphatic and stay courteous. It’s very likely that he or she will push back hard and that may cause you to recant. If you begin to feel guilty, that’s a normal emotion. Try to stay pragmatic and be emphatic yet courteous. Don’t let him or her guilt you into making another bad decision.
What other advice would you give people facing the unpleasant prospect of having to fire a family member from a small business? Please share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Why High-Performing Landscape Companies Grow with Waters

A strategic framework for consistent turnarounds, stronger profitability, and lasting business value In commercial landscaping, ambition is rarely the thing missing. Most of the companies we meet have deep customer relationships, capable crews, and a real commitment to quality. They got to where they are through persistence and hard-earned expertise. But as these businesses grow, that same growth starts exposing cracks in how the business actually operates. Scale creates complexity. The processes that worked fine at $5 million in revenue start to buckle at $15 million. A leadership structure built for one branch gets stretched thin across three or four. Informal communication that used to be fine now causes real friction. Labor costs start outpacing revenue. Margins get harder to predict. And at some point, the owner realizes every new contract is adding more weight on their shoulders instead of more freedom. Chasing more volume at that stage doesn’t fix anything. What the business actually needs is better design. Waters Business Consulting Group partners with commercial landscape leaders to find what’s actually limiting their performance, then build the systems, leadership, and financial visibility it takes to turn a reactive company into one that can scale on purpose. We’re not just trying to make the company bigger. We’re trying to build something more resilient, more profitable, and valuable enough that it doesn’t fall apart the moment the owner steps away. That’s the kind of institutional strength that brings landscape companies to Waters in the first place. The WBCG framework: building stability from the inside out Real improvement never comes from one initiative bolted onto an otherwise unchanged business. An aggressive sales push can’t fix operations that are already broken. A beautiful financial report means nothing if no manager is actually held to it. Hiring more people just adds more complexity if nobody’s roles are clearly defined. Lasting change has to touch every part of the business at once. Our framework works across six areas that all reinforce each other: diagnosing the business honestly, building financial visibility, tightening operational discipline, creating real leadership accountability, aligning growth with profitability, and building lasting enterprise value. Strengthen these together, and you get a business that performs the same way twice, reliably, instead of getting lucky once. 1. Diagnose before you prescribe anything Every struggling business shows the same symptoms: margins eroding, turnover climbing, cash getting tight, an owner who can’t get out of daily emergencies long enough to lead. Treating any one of those symptoms on its own almost never fixes the underlying problem. A profit problem is often really a pricing problem, or a production-control problem, or the wrong mix of customers. What looks like a hiring crisis is often just unclear management roles wearing a different costume. We start by taking a genuinely close look at the economics and the org structure to find where performance is actually leaking out, across financial performance, gross margins by service and customer, how accurate the estimating really is, labor efficiency, leadership capacity, the sales pipeline, and how dependent the business is on the owner. The point isn’t to produce a thick report. It’s clarity, so leadership can stop reacting to whatever’s on fire today and start fixing what’s actually broken underneath. 2. Build financial visibility you can actually act on A financial report tells you where the business has been. It doesn’t tell you where it’s headed, and by the time it lands on your desk, the month it describes is already over. The companies that perform best treat their financials as a steering wheel, not a rearview mirror. They connect what happened at month-end back to the decisions made on a job site that week, which means they catch a bad trend while it’s still small instead of after it’s compounded for two quarters. We help teams build visibility into the numbers that actually move performance: gross margin by service line, crew productivity, equipment utilization, overhead trends, pipeline quality, and cash flow. Once an owner understands the true economics of the business, they stop managing crisis to crisis and start leading. 3. Build systems, not heroics Landscaping is genuinely complicated to run well. Labor, equipment, schedules, and materials all have to line up, usually while the weather refuses to cooperate and customers expect more every year. The companies that consistently perform don’t lean on a handful of superstar employees to hold the whole operation together. They build systems: disciplined pricing and estimating, real production planning, tight equipment and purchasing controls, consistent quality checks, and reporting that actually gets used. Strong systems cut down on the variation between one crew’s work and another’s, and they let a company grow its revenue without a matching spike in stress. 4. Invest in leadership and real accountability A business can’t outgrow the capacity of its leaders. A lot of owners hit a ceiling simply because they’re still the one making every operational, financial, and personnel decision, no matter how big the company gets. We help build real leadership depth by clarifying roles and actually handing off authority, not just responsibility. Every manager should know exactly which results are theirs, how success gets measured, when to escalate a problem, and how much authority they actually have to make a call. When managers are genuinely empowered and genuinely accountable, the owner finally gets time back for strategy instead of spending every day putting out fires that shouldn’t have reached their desk in the first place. 5. Chase profit, not just activity Growth only matters if it produces profit. Too many landscape companies chase revenue that ends up costing more in cash and leadership time than it’s worth. We help teams evaluate opportunities on strategic fit and long-term value, not just top-line size, which usually means putting resources behind the highest-margin customer segments, contracts that fit inside actual operational capacity, and markets that support healthy cash flow rather than draining it. Real business health takes the discipline to turn down the wrong work so there’s room to do the right work

Read More »

Pros and Cons of Working for a Startup

There are pros and cons of working for a startup — everyone knows this. But, it’s the actual realities versus the imaginary which cause a lot of undue anxiety and stress. Of course, it’s only natural to feel a bit uneasy about joining a fledgling organization. Even if it’s a great idea and a wonderful team of individuals, there are still up and downsides of working for a startup. Cons of Working for a Startup Let’s begin with the downsides first. It’s certainly no secret that salary is a huge concern. Often, what you’re paid is either low or in some circumstances, it’s “sweat equity.” Even if there’s an acceptable salary, there’s the real possibility your job description will contain a whole host of duties. In such an environment, it’s quite common for specialists to become jacks of all trades. Working for a startup can involve a lot of risk, that’s no secret; according to the Wall Street Journal, three out of every four startups fail. In fact, there are startups funerals in Silicon Valley where CEOs can highlight the demise of their defunct companies and ruminate on any mistakes made. But that doesn’t mean taking a job with a startup – even one that ultimately fails – won’t allow you to gain valuable experience and skills to add to your resume. —Monster.com Then, there’s the real possibility of working with less. It isn’t unheard of to have little to practically no resources at your disposal. Of course, one of the most common downsides of joining a startup is those long, irregular hours. Finally, there’s the real risk of untimely failure or an inescapable decline toward failure. Pros of Working for a Startup Obviously, it’s not all bad news. (If it was, no one would ever even consider working for startups. In fact, startups might not exist.) So, here are the upsides for working for a startup: A potential huge ROI. We’ll begin with the ultimate enticement — a gigantic payout. After all, isn’t this why startups get going in the first place? And, there’s certainly no shortage of examples out there to showcase big-time successes. Big gain in experience. Okay, let’s suppose you just earn a good salary and don’t hit the entrepreneurial lottery. You’ll gain a whole lot of experience during your journey that’s probably not available anywhere else. Making new connections. Another advantage of joining a startup is your ability to make new connections. You’ll meet a host of people in different roles which can really expand your professional network. The intangible excitement factor. It’s not just all about money and experience. There’s also the excitement of an unknown journey. It’s all wrapped up in a whirlwind of circumstances and emotions. What other factors would you say play into joining a startup? Please let others know about your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Here’s the Most Important Takeaway from the Trump ZTE Fiasco

ZTE who? What? Wait just a moment. There’s headlines all over and most Americans don’t know what to make of the situation. In fact, it’s a bit confusing since it deals with a very boring subject. But, it’s really not that difficult to understand. Ostensibly, it’s the result of bad business practices, and it’s causing real-world consequences for a very large company. At the most basic level, it delivers a great business lesson, which many entrepreneurs would otherwise avoid. It’s an uncomfortable topic but it’s also a never-ending threat — complying with the law. The Trump, ZTE Fiasco in a Nutshell Of course, very few business owners intentionally break the law. However, this doesn’t mean it’s not possible to accidentally cross the line. (In fact, it’s entirely possible to inadvertently make a mistake, only to realize it when it’s too late. After all, there are so many laws, it’s nearly impossible to always be in-the-know, all the time.) Basically, the Chinese company, ZTE, sold its products to Iran and North Korea. Now, what triggers the trouble is the fact those products contained American-made components. Today’s business owners have a wide array of concerns, not the least of which is turning a profit in what can be a volatile economy. However, financial success is of little consequence if the government compels you to dissolve your company for failing to comply with legal requirements. —Intuit Quickbooks The net result is a colossal fine of $1.19 billion. Yes, “billion, with a ‘B.’” That’s the cost of violating trade agreements and it’s one which will surely make every international company take notice. But, such a financial penalty will put ZTE out of business. That’s where the controversy comes into play. What to Do if Your Business is Out of Compliance Now, let’s look at the core lesson here — operating a business within the confines of the law. Sure, breaking the law is not something you set out to do. Although, this doesn’t mean it can’t happen. If it does, here are some helpful suggestions for how to deal with a compliance issue: Don’t try to hide it or ignore it. Whatever you do, don’t attempt to hide it or ignore it. The problem won’t magically go away. It will only worsen and that’s much more damaging. Face it, apologize, ask for forgiveness, take responsibility and do so humbly. Get sound legal advice, right away. If your business does break a law, it’s not necessarily the end of the world. Sure, it’s definitely unpleasant and uncomfortable. But, that means it’s time to tackle it head-on, as soon as possible. Speak with a lawyer, if necessary to learn about your options. Openly address the situation carefully. Chances are excellent your team members will learn about it at some point. Do yourself a favor and address it pragmatically. Just like when you fire an employee, there will be questions and you have a duty to provide answers. Learn from your mistake and move on. While it’s a bad experience, that doesn’t mean it’s worthless. Take the opportunity to learn from your mistake and then put it behind you. Have you ever experienced violating a code or law? What other advice would you offer about learning and getting past the experience? Please share your thoughts by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.