Friday, February 3, 2017

Saving a Family Business from Emotional Dysfunction


There are some pretty eye-opening stats, like

  • 2/3 of the businesses around the world are family-owned
  • It is estimated that 90% of U.S. businesses are family-owned
  • Only 3 out of 10 family businesses survive into a second generation and only 1 out of 10 survive into a third generation

As the article points out, one of the best ways to deal with these issues is to get the controlling family members to focus on the future and what the business will look like after that generation is gone from the business. 

The article also suggests the importance of "Fairness" in the dealings between family members, pointing to three possible practices to implement:

  • Give everyone voice, creating the perception that everybody in the family can make a difference
  • Provide clarity, offering timely and accurate information about family and business issues
  • Be consistent, applying the rules in the same manner to all members of the family

In addition to these practices, the article discusses the benefits of creating a "Constitution" for the company and the importance of having a strong Board of Directors.

The advice laid out is good food for thought, especially for many of the small businesses I have worked with over the years. A family-owned small business inherently has unique issues that need to be addressed so that it can thrive for generations, especially considering how many family-owned businesses there are in the world.

Wednesday, February 1, 2017

Nanny Tax Requirements (State by State Guide)

One of the big benefits of starting your own business is often the flexibility that being the boss allows when it comes to your children's schedules. But when you first start the company, you'll often be working longer hours than you ever anticipated. For some people who choose to go that route, hiring a nanny can be a good way to make sure your children are taken care of.

This week I came across a good site that allows you to see the tax and labor law for your state when you hire a nanny:


You can choose your state and it will give you a summary of how your state's laws treats your nanny, including their Worker Classification, Tax Responsibilities, Labor Law Requirements and Insurance. It also includes a Budget Calculator for you to examine the financial impact the nanny will have on your home budget.

If you are preparing to hire a nanny for the first time, or just want to make sure that your current situation is checking all the requirements, check out the website for some good answers.