One of the greatest complaints small employers have is how difficult it is to find good employees. But there’s one place they often fail to search for new job applicants – the families and friends of their best employees.

After all, current employees who have great work attitudes probably have brothers and sisters with great work attitudes too. Before rushing headlong into hiring family or friends, consider the ups and downs.

Advantages

Family members and close friends often come into a business with a strong commitment to the company, more so than the average employee.

Because relatives may think of the company as an extension of the family, they may be more likely to be flexible and work into the evening and over weekends when needed, anticipating that they will personally benefit from the long-term success of the company.

You know family and friends well and are familiar with their capabilities and shortcomings. This may enable you to place them in just the right position. Also, your familiarity may allow you to train them more quickly than other new employees.

Disadvantages

A relative may take advantage of family status, knowing that it’s hard to fire them when you’re sitting down at the dinner table with them that night.

Other employees may see the hiring as nepotism, especially if the family member is given preferential treatment or given a position without having the appropriate experience or training.

Family problems can be brought into the workplace. It’s one thing to have a family disagreement at night and be able to leave it when going to work in the morning. But it is entirely different when you’re facing the same person at work; the strain may affect the entire business.

Managing The Mix

Hiring friends and relatives is tricky. If not handled well, it can sour the work environment. But there can also be great benefits, as long as you proceed carefully.

Your Business Is Not A Charity.

Do not hire someone’s relative just because they ‘need’ a job. If someone has trouble holding a job, you don’t want them either. Write a detailed job description. Make it clear that if the relative or friend doesn’t perform as expected, he or she will be let go. Hire on a probationary basis, establishing a two-week or month-long period to see how things work out.

The Right ‘Stuff’ 

Ask specific, detailed questions about the relative’s qualifications before you agree to interview them. People rarely see their relatives clearly. They’re likely to make comments such as “He’s a wonderful guy” or “She’s so smart.” That doesn’t tell you if they’ve had relevant work experience or training. While you want to hire people with the right attitude, leave yourself an out: “I’m not sure Chris has the right computer skills we need.”

Don’t Have Too Many Chiefs

It is advisable not to have relatives reporting to one another or working too closely together. It’s one thing to have siblings work for the same company in different areas, but if they work together on the same project, you’re likely to see old family patterns emerge. If something goes wrong, don’t be surprised if you hear: “He started it.” “No, she started it.”

The Trouble With Spouses 

Spouses or domestic partners working together can present many difficulties. There can be:

• logistical issues: vacations or family emergencies may leave you doubly shorthanded.
• And behavioural issues: a terrific, eager worker may change dramatically with a spouse around.

The dynamics of a couple’s relationship are stronger (and usually less comprehensible) than a boss/employee relationship. Moreover, in a small, new, or very risky company, having both breadwinners work for the same company puts a lot of stress on a family and their budget. That’s a lot of extra stress on you.

Be Cruel To Be Kind

Be the toughest on your relatives. It is essential to set ground rules so that relatives are clear they are not entitled to a ‘free ride.’ It is also important for other staff members to see this strategy in place. Before hiring a relative, make it clear to them that they will have to prove themselves and be held to the highest standards. Never supervise a relative directly.

Don’t Play Favourites

Make sure all the rules apply to all employees. Everyone has to be qualified, and they have to do their jobs well. Otherwise, they will not be hired, or they’ll get fired. Even if they’re your mother.

Making your business seem more significant than it actually is can go a long way in helping you secure larger clients.

Appearing larger can help customers feel more secure when dealing with you and possibly give your voice or presence more authority. Exaggerating elements of your business regarding first impressions is easier than you might think, and many of the available strategies are cost-effective.

Put Extra Effort Into Your Website:

Your website is one of the first places potential customers will visit to size you up. The impression that your website makes on them can seriously influence how your company is perceived. A website with a dated design, difficult navigation or poorly written copy can instantly give a negative impression. Poor-quality websites suggest you’re a small, amateur company that doesn’t care about online presence. This can alienate an entire group of potential clients.

Work On Your Social Media Presence:

Developing an active and current social media presence can help a business connect with its customers and assist in making it appear more prominent and experienced. Social media sites increase the amount of information that can be found on a business and are usually far more engaging and cost-effective than traditional forms of advertising.

People generally assume that businesses with a lot of online material have been there for a long time. Businesses with many followers on social media can create a sense of age and experience, enhancing the brand’s image.

Invest In Your Promotional Materials:

Professionally designed business cards with consistent stationery and letterheads will give business credibility. For example, printing the details on cheques and envelopes rather than writing on them by hand are small and cost-effective options that can assist in building professional reliability.

Continuity over different marketing platforms also promotes a sense of brand unity. Using professionally designed images on all company material will demonstrate your reach and stability in the market.

Get A Virtual Office:

For businesses that cannot afford a full-time receptionist, setting up a virtual office can have the same effect at a much cheaper cost. Having a virtual employee answer phone calls and manage customer service from an outside location means eliminating the costs of actual employment while giving the impression that the business is much bigger than it is.

Turning A Vehicle Into A Company Car:

Visiting clients is essential in specific industries, such as businesses within construction or maintenance. Pulling up in a company-branded car can build respect and show professionalism. However, check with an accountant about the tax treatment involved with company cars, if buying a company car is the right move for the business or what records may need to be kept for work-related expenses involving the car.

Assess The Location:

There are many external elements of a location that can affect your business. Look at the traffic in the area and work out how it can support or hinder you, as well as what services are in the area in which you choose to locate. Consider asking other businesses in your desired location for some advice on the best providers for services such as gas, electricity, water, phone and internet. Access for both customers and employees is also a large factor when assessing the location. Consider whether it is easy enough for clients to find and employees to travel to every day. Making your business accessible can allow you to obtain a wider pool of staff.

Remember your legal and environmental obligations when choosing a place to set up your business, and check with the local council for any planning and building restrictions if necessary. For example, consider how possible noise produced by your business would affect the local community. Before making any big decisions, consider seeking further legal or professional advice. This gives the added benefit of your brand getting noticed on the street.

Spreading The Word:

To get the attention of more prominent potential clients, it may be necessary to spread the word on some of the other big-name clients the business has had. Once a business has obtained a few large contracts, using them to help promote services and secure other clients can be highly beneficial. Business owners can mention previous jobs in meetings or display work for other clients