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10 Pitfalls of Starting a Family Business


7
Caving When Employees Want Rewards
She's been working at your restaurant for 12 years. How will you reward her loyalty?
She's been working at your restaurant for 12 years. How will you reward her loyalty?
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Every so often, a family-run business will develop a long-term employee, someone who's been working for 10 or 15 years. After a decade in the business, he starts to ask for (and maybe deserves) some vested interests in the company. While you want to keep him around and reward his work, it's problematic to let anyone outside the family have a minority stock share and the legal rights that come along with it. In order to keep valuable employees, family businesses need a solid bonus plan in place to distract irreplaceable workers who start sniffing around for stock options.


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