Family + Business: How to Navigate Balancing Opportunity and Fairness

Family businesses have a unique appeal and a distinct set of challenges. I know first-hand the blessings and curses. From small, family-owned shops to large firms, many businesses across the world rely on family members to help drive the business forward. Whether it’s a parent, child, spouse, or extended family member, the involvement of family in business is a common practice, bringing with it both benefits and potential pitfalls.

The Upsides: Familiarity and Commitment

One of the primary advantages of having family members involved in a business is their inherent understanding of the company’s culture, values, and history. Growing up around the business or being closely connected to someone who has invested their time and energy into it creates a unique perspective. Family members often come in with a natural sense of loyalty and commitment, having witnessed the hard work it takes to build the business firsthand. This intrinsic knowledge can lead to smoother onboarding, quicker learning, and a deeper personal investment in the company’s success.

I grew up doing cartwheels on the sidewalk of the Frasca/Sertich restaurants. I watched as my parents dedicated their spare time to bringing the business to life. I spent every Saturday watching my mom meticulously craft the perfect schedule – so that everyone had all of their needs met and the business was able to thrive. 

When I began working for my extended family, I worked tirelessly. I cleaned with a toothbrush; I handled customer service as if the fate of the restaurant sat squarely on my shoulders; I did anything asked.

The Challenges: Fairness and Perception

Involving family members in a business can also present challenges, particularly around perceptions of fairness. When a family member steps into a role that could have gone to an external candidate, it’s natural for the existing team to question whether the decision was made based on merit or simply on familial ties. This can sometimes lead to tension and impact team morale if not handled thoughtfully.

It’s crucial to create an environment where family members are treated just like any other employee. This means ensuring they are held to the same standards, receive the same training, and are subject to the same evaluation processes as non-family employees. In some instances, it may be beneficial to put the team in charge of assessing the family member's performance to ensure that accountability remains unbiased.

Treatment of me within my extended family’s business was mixed. My mom, who also worked for my extended family, ensured that I had the training I needed. But my direct treatment from my relatives often felt less than fair. While I was young and inexperienced, my perception looking back was that they treated me unfairly in an attempt to over-correct for our relationship. I have always striven to correct this balance by counseling my clients to find a fair and consistent way of treating all employees…no matter their relation.

Striking the Right Balance

The key to making family involvement work is transparency, communication, and a commitment to treating family members like any other employee. This might involve having open conversations with the team before bringing a family member on board, setting clear expectations, and putting structures in place to ensure accountability.

Family businesses have the potential to blend personal relationships with professional success, but it requires a conscious effort to maintain a balanced approach. By learning from past experiences, setting clear boundaries, and engaging the entire team in the process, businesses can create an environment where family members contribute meaningfully without compromising fairness or the overall company culture.

Lessons Learned from Experience

Many of us who grew up working in family businesses have our own stories—some positive, some less so. A bad experience with a family member who served as a manager or boss can leave a lasting impact. For instance, some might recall times when the family dynamic added extra stress, with unfair treatment or a lack of boundaries blurring the lines between personal and professional relationships.

These personal experiences highlight the importance of avoiding favoritism and the need to ensure that family members are neither given undue advantages nor unfairly disadvantaged. An unhealthy dynamic can be as damaging as favoritism, leading to resentment or a feeling of being undervalued, even within one's own family business.

In summary, family dynamics in business are complex. The Frasca Family was no exception. But, with careful management this piece of the puzzle can be turned into a powerful asset, driving the business forward in a way that honors both the family and the company's broader goals.

As I usher in a new chapter of my business, and welcome my daughter as the 4th generation serving Paninos, I understand the responsibility of this balance and I hope the lessons that I’ve learned are a factor to capitalize on family and business as a strength!