How to put your kids to work - includes related article

Black Enterprise, Dec, 1992 by Kevin D. Thompson

Parents have a tendency to remember the significant "firsts" in their children's lives. Most mothers and fathers can vividly recall their kid's first step, first spoken words and first day at school. John E. Brown is no different. But he can add another momentous "first" to that list.

"I remember the first time my son Geoffrey said he wanted to work for me," says Brown, founder and CEO of Am-Pro Protective Agency Inc., a $34 million BE INDUSTRIAL/SERVICE 100s security guard company in Columbia, S.C. "We were sitting around the table, and he asked if he could work for the family business. I asked him what he wanted to do, and he said, 'Anything.' He started work two days later."

That was two years ago. Eleven-year-old Geoffrey now works 10 hours a week and gets paid $6 an hour to vacuum the office and take out the garbage. Working for his father, notes Geoffrey, has given him "something to do and makes me proud of myself."

The eager fifth-grader also makes his father proud. Brown, who has two other sons, Michael, 15, and Roderick, 12, says he's impressed with Geoffrey's roll-up-your-sleeves, get-your-hands-dirty work ethic. "He wants his own check, and he's willing to do whatever it takes to get it."

While Geoffrey doesn't mind doing grunt work, Michael and Roderick do. "Michael wants to do everything that I do," Brown notes. "He thinks this is the best company in the world. But the right way to start is from the ground up. And Roderick is more into his music."

Brown says he's careful not to push any of his sons into the family business. (Geoffrey is the only one to work for Am-Pro). "I don't want to discourage them at an early age," says Brown, whose company is ranked 30th on the 1992 BE 100s. "I've been reluctant to just toss my boys in the company and let them do anything. Instead, I want them to focus on education. Once they do that, the other things will come."

Going Beyond The ABCs

Teaching our children the value of entrepreneurship and economic empowerment is as vital as teaching them their ABCs. It's no secret that passing on a family business and creating an entrepreneurial dynasty is a dream shared by most business owners. What entrepreneur doesn't fantasize about watching what he started from scratch--perhaps in a basement or cramped office--live on into succeeding family generations?

Many entrepreneurs, however, never realize that dream--mainly because of poor or late succession planning. The average life expectancy of a family-owned business is 24 years--which coincides with the length of time the firm's founder remains active in the company. Less than 20% of the nation's family businesses will survive more than 20 years. And no more than 30 out of 100 family businesses in operation today will pass into the hands of the present owners' children.

Business owners who successfully pass on the company to their children have one thing in common: Their kids started working for them at an early age. Smart entrepreneurs like Am-Pro's Brown introduce their children to the family business and hire them long before they've even had their first date. They routinely bring them to the office, give them tours of the plant and offer them responsible jobs commensurate with their age and skill level. Most importantly, they make the work environment fun and exciting. These owners' kids don't equate going to the company warehouse with undergoing root canal.

Putting your child on the payroll is a shrewd move for two reasons: The parent gets a chance to groom his potential successor early on, and the kid gets a personal view of how to run a business.

But before you run out and ask "junior" to join the firm, ask yourself the following hard questions: What kind of job will I give her? How much will I pay her? Am I up-to-speed on child labor laws? Are there any tax incentives to hiring my kid? Whom should she report to? Can I handle the dual role of parent and boss? How will I handle discipline problems?

Those are only a few of the thorny issues business owners must consider before hiring their kid. The key to bringing children into the family business is to encourage them to join the company. "Children should realize that this is your show and that they're welcome to join it," says Rod W. Correll, a Johnstown, N.Y., family business consultant and president of R.W. Correll & Associates Inc. "But they should know they don't have to do it to please Mom or Dad."

Correll adds that kids shouldn't feel pressured into working for the family business. Participation must be seen as voluntary, not an obligation. Make your kids feel like it was their decision.

"Your kids will want to be like you if they see the business as something that is enjoyable and fun," notes James I. Herbert, president of James I. Herbert & Associates Inc., a Wolcott, Conn-based consulting firm that specializes in family business. "If they know that it's driving you crazy, then they won't want a piece of it."

Entrepreneurship 101

Kids go through several stages of development when being introduced to the family business. Bringing a 12-year-old into the office on a weekend is quite different from showing a 20-year-old marketing major the entrepreneurial ropes.