“I love these,” a fellow customer says, biting into a cranberry-studded muffin at a café I frequent. I smile and nod. “I drive from San Bruno to come here,” she adds. I wonder if others drive past the ubiquitous coffeehouse chain on their way here. Yes, there are places closer to my home and office, but I prefer this little café. Like many Americans, I’d rather patronize a small family enterprise than a large corporation.
But there are pitfalls.
After working for three years as a graphic designer at a small print firm in Burlingame, Calif., I learned about the balance that business owners must maintain. I wanted to be a team player, but somehow I, like other non-family employees, was made to feel different, and business suffered as a result. Finally, the firm’s doors closed forever. Some ex-employees swore they would never work for a family-owned business again. Others looked for a more efficient management team. Now I teach a small-business course at City College of San Francisco. For the last three years, I have taught my students not only how to market themselves and get a business license, but also how to untangle their personal and professional lives.
1. Keep family matters in the family. Although it’s tempting, don’t discuss your personal life at the office. It’s especially important for husband-and-wife teams to conduct themselves in a professional manner. Complaining to a non-family employee about a spouse’s infidelity or asking your assistant to pick out a present for your mother-in-law will result in a team of emotionally exhausted employees heading for the door in droves.
2. Remember that your business isn’t a charity. It’s tempting to hire your just-out-of-jail daughter to do some basic clerical tasks, but beware! Instead of admiring your big heart, your employees will be concerned that the expense of hiring an under-performing relative will preclude you from granting your real workers wage or budget increases or purchasing new office equipment. If you must help your unemployable brother-in-law, allow him to live in your house or lend him money, but don’t give him a make-work job with a real paycheck!
3. Treat all employees fairly, whether they’re family or not. If you offer to pick up lunch at the deli, make sure you collect money from the family and non-family employees. If you give special considerations to family members in the business, you’re liable to end up with a mutiny on your hands. At one company, a group of non-family employees who resented a relative’s more-than-generous commissions planned their mass exodus to coincide with the company’s busiest period.
4. Don’t push your staff’s dedication to the limit. As the business owner, you don’t mind coming in on Saturday to get that last project out for your client—but be careful about asking employees to stay late and come in on weekends. Make sure you don’t overdo it, and that extra compensation is agreed upon up front. And even if your employees say they don’t mind working overtime, listen for big sighs and sotto voce complaints to other managers. Learn about your staff members’ personal lives—what night is bowling night, when their kids’ soccer games are, which evenings they spend taking courses or attending book club meetings. Work around their schedules before they ask—you’ll be viewed as considerate, and your staff will be even more willing to pitch in to get the job done. If you can’t hire temporary clerical help, consider enlisting family members who own part of the business to tackle the really awful grunt work before asking non-family employees to lend a hand.
5. Don’t make promises you can’t keep. Your employees will consider your casual conversations about possible pay raises or new benefits to be a verbal contract. Whether it’s a bigger office, more support staff or a hat rack—if you promise it, make sure it happens. If you need to renegotiate original promises, discuss the matter in private with the employee involved, and be clear about when you’ll be able to keep up your side of the bargain.
6. Don’t hire new employees unless you’re ready to give them tools they need to get the job done. Asking a professional to work on a wobbly card table is no way to run a business. Wait to hire until you can offer what most offices can—a decent desk, ergonomically correct chair, adequate lighting, a computer networked to a printer and the usual desk implements. Employees expect access to a copier, fax machine and postage meter.
7. Use your resources wisely. Asking your general manager to answer the phone will undoubtedly result in backlogs and missed deadlines. When delegating tasks like this, ask yourself which employee can most easily handle constant interruptions. Alternatively, consider hiring a part-time clerical assistant. Local colleges may be a source of interns—people who may be willing to work for low or even no pay in order to gain valuable experience for their résumés.
8. Don’t borrow from your employees. Anything. Ever. At one small company I know, the owner always owes someone a few dollars. His employees don’t respect him, he feels guilty, and no one trusts him. The employees hide when the UPS truck arrives because the owner never makes arrangements for COD packages; the staff ends up shelling out the necessary cash. This conduct not only is unprofessional but also undermines the mentoring relationship between boss and staff. Sarcastic “skinflint-boss” comments will fly. Your employees will scour the want ads for a company that has a petty cash drawer and won’t delay approval of expense sheets. Borrowing aspirin and Band-Aids? Shame on you. All companies should have a well-stocked first-aid kit for use by owners and staff members.
9. Set a good example. If you insist on making personal phone calls, shopping and reading magazines on company time, don’t be surprised when your workers follow suit. If you ask your employees to curtail time-wasting habits, be prepared to practice what you preach. You’ll help to create a more professional atmosphere—and you won’t be embarrassed when clients drop in.
10. Don’t nickel-and-dime on stuff that’s important to your staff. At one small business, staff happily attended a mandatory early-morning meeting. All went well until the boss stopped bringing in donuts, proving that a few dollars’ worth of carbohydrates go a long way in soothing the masses—especially when productivity and expectations within the company are being discussed.
11. Avoid panic phrases when discussing budget limitations. Strive for professionalism on all levels. You wouldn’t hear a vice president at a corporate office say, “Sure, we can afford to buy you a new computer if we sell our company van.” Even if the expense being proposed is out of the question, be careful about what you say when vetoing it. Use words like, “Hmm…. I can see where a new computer might increase productivity in your area. I don’t think we have the budget for that right now, but outline what you might need—I’d like to look into it for the next fiscal year.” You’ll sound concerned, effective and empathetic, instead of cheap. Your employees will feel valued and listened to, instead of insulted and cut off.
12. Don’t discuss payroll concerns with employees unless you’re ready to cut hours or lay people off. Urgent conversations in common areas or sarcastic comments about not being able to afford payroll will spread like wildfire among your employees. An atmosphere of fear and uncertainty will envelop your office, creating a race to the bank on payday, an increase in pilfering and a lot of résumé writing on company time. Instead, discuss payroll concerns and options with your managers behind closed doors. Find other small-business owners to vent to or brainstorm with. Contact your local Chamber of Commerce for information on support groups, or call your local university to see if it offers a family business forum. Before talking layoffs, one boss outlined what the company needed to do about its finances and then asked employees for suggestions about their own department. One employee offered to give up a company car that he hardly used; another suggested sharing computers. Their recommendations helped their boss to avoid mass layoffs and gave the employees the sense that they were part of the long-term plan. Although the boss did have to cut back on hours and lay off one person, he was careful to provide support for those who remained. Later he reinstated hours, and employees felt valued for their contribution.
13. Allow your employees to enjoy the advantages of working for a small company. At one small ad agency, employees can wear jeans to work and bring their dogs to the office. Even if you can’t go that far, make it worth your employees’ while to work for you. OK, so you can’t offer memberships at an exclusive gym, or big year-end bonuses, but how about bagels on Fridays, dress-down days and the occasional pizza lunch in the conference room? Your employees will feel appreciated, and the payback will be noticeable. A desire to please you will become the norm.
Shari Dinkins is a freelance writer based in Pacifica, Calif.