Family and Friends

Q: My sister-in-law recently hinted that she'd like to come work in my scrapbooking shop this fall, even though she doesn't have any retail experience. We get along fine, but I don't know if it's a good idea to hire a relative. What do you think?

A: There's a saying in retail that you shouldn't hire anyone you can't fire. That saying is certainly worth considering before offering a job to a relative or close friend. Think about how you'd feel giving this person constructive criticism, or even having to let him or her go. Your family relationship or friendship could potentially be harmed.

If you have other employees, you also need to be careful not to show favoritism in hiring and supervising a relative or friend. You must demonstrate fairness and objectivity by giving all staff members similar responsibilities, and judging their performances objectively.

Start by using the same hiring criteria you applied to other employees to evaluate your sister-in-law's application. First, she doesn't have any retail experience. But is she an avid scrapbooker, with good people skills? You might hire someone with those qualifications, since retail procedures can usually be learned on the job. On the other hand, you should always think twice before hiring an employee unwilling or unable to give the level of customer service you require. If such a person is hired, it will hurt staff morale, and may hurt your business.

Another consideration is how to keep complications in your personal life separate from your business. If your sister-in-law were to divorce your brother, for example, it might be awkward to continue seeing her every day at the shop. The dynamics of your personal relationship should be kept out of the workplace as much as possible.

There is, of course, a positive side to hiring someone you already know. For one thing, you may continue to enjoy each other's company both at work and in your personal life. Sharing experiences at the shop may enhance your relationship and give you a new appreciation for each other's talents.

The rules regarding hiring relatives don't usually apply to members of your immediate family. If you own a gift shop, everyone pretty much expects your spouse and children to pitch in. Whether you pay your spouse or not is up to you, but teens and young adults should be paid the same as other employees, and perform the same duties. They should also be expected to act professionally, even if they do call the boss Mom.

Q: Next summer, my husband and I plan to take early retirement from our teaching jobs to pursue our dream of opening a gift shop. We've never worked together before, and I'm a little worried about how we'll handle being partners in both marriage and business.

A: If you look in the dictionary, you'll actually find "mom and pop store" listed as a term for a small retail business. So you'll be following a well-established tradition by running a shop together. Retailing may be the perfect occupation for a couple to share. And I speak from personal experience: my husband, Dean, and I have co-owned Orange Tree Imports for almost 30 years.

We learned the hard way that the key to maintaining harmony at home and work is to have separate areas of responsibility. When Dean first joined me at the store (I had a year's head start), I second-guessed his buying decisions and tried to maintain control over most aspects of the store. We soon realized that each of us should have exclusive control over certain merchandise areas, and that we should divide major management responsibilities based on our strengths. For example, I'm in charge of personnel, while Dean handles advertising.

We do, of course, collaborate on important decisions, and we try to give our staff a say as well. And disagreements are handled behind closed doors. Co-retailing is a bit like co-parenting — it's best to present a united front.

In addition to dividing our job duties, we try to schedule our work week so we're not always together. Like many retailers, we work on Saturdays, so both Dean and I take Sunday and Monday off as our "weekend." During the rest of the week we also each take some additional time off — separately.

At dinner, we share stories from our day at work, discussing customers and employees. Traveling to trade shows together is another perk of going into business together. It may be helpful, however, to limit the shop talk at home, especially if you're finding work stressful. And be sure to take vacations that are time to relax and leave work behind. You don't want the shop to be the only focus of your life, or your relationship.

There are a few other factors you should consider before starting a business together. Do you each have skills and interests appropriate to retailing? Do you communicate well enough as a couple to be business partners and manage employees? Do you share the same vision for your shop, and how much work will each of you put into it?

Your dual teaching pensions may put you in a good financial position to start a store worrying about it supporting you both. Many couples, however, would do well to consider having one spouse continue working elsewhere until the shop is well established — especially if the other job provides health insurance. There will still be plenty of time for both partners to be involved on weekends and in the evening. And if all goes well, eventually the shop will be profitable enough to be your sole source of income.