Going Outside – The Runaway Manager

“Before we knew it, we learned that we were having a Grand Opening for our new Manhattan retail store later that week. And we weren’t even a retailer“

To help with the growth our family business, our family hired a key non-family manager for the first time.  Attracting an outside manager into a family business is especially challenging with regards to compensation.  Like many closely-held firms, we weren’t willing to give up equity in the business, so we created a compensation package built around a performance bonus.  We selected an outside executive who came from a larger company, who brought proven expertise to grow our company rapidly. Coupled with their high ambition, it seemed like a good idea to tie their compensation into sales growth. More…

Entering the Family Business – Working Your Way Up or Landing in Management

Hazing in the Family Business

I’ll never forget my first day in our family business when I had completed my morning shift and took a break for lunch.  The warehouse manager asked me if my father was going to take me out for the customary steak lunch for all new hires.  I went upstairs, walked into my father’s office and told him I was ready to go for my steak lunch. He looked at me with a confused stare and told me he never takes a new employee out for lunch on the first day. His confused stare was only matched by the laughter of the warehouse manager when I returned to my post after lunch. I realized I had been hazed by the warehouse manager as part of the ritual for new employees.

What job positions do family members assume when they first enter the family business?

Some of us come in at the bottom of the organization chart in a line position and work their way up, while others land into management level positions and take control more quickly. Here are some of the differences: More…