How to run a franchise as a family member

FASTSIGNS franchisees John Harvey and Andy Simpson offer their expert advice on working successfully with members of your family

There’s an old showbiz adage that says never work with children or animals. Should this be extended to going into business with family members?

Not according to two successful FASTSIGNS franchisees, who have managed to get the balance between work and home life right, and as a result built thriving companies.

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Now 61, John Harvey explored the possibility of becoming his own boss after being made redundant by British Gas when he was 45. Like many people lacking business experience, he investigated franchising and ended up setting up FASTSIGNS Guildford in 1995.

“I was drawn to signage franchises and FASTSIGNS impressed me from the start,” says John. “Over the past 16 years I’ve seen the business grow and change because of some huge advances in technology, and FASTSIGNS’ training and support has been invaluable in keeping me ahead of the competition.

For the past 14 months John’s eldest son Tom has been working in the business. “University wasn’t for him, so he did a diploma in media studies and is studying for an A Level in graphic design on day release,” explains John.“It was always in the back of my mind that he might join the business, and with the way the job market is at the moment it made sense. When my designer left, Tom was keen to step in and I thought, why not?

John says his relationship with his 19-year-old son hasn’t changed since he joined the business:“We probably disagree less and I guess that could be down to Tom’s new insight about what it’s like to run a business and the kind of pressures you’re up against. He has a greater understanding of what it’s like to be me now.”

Invest
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Andy Simpson, 41, runs the FASTSIGNS Leeds franchise with his father, and with his wife, mother and sister all contributing to the business, describes it as very much a family affair.

Andy explains: “When my father was made redundant in 1995 he started looking at various franchises. I was keen to run my own business, but didn’t have anything to invest, so I asked if I could join him.

“I liked the FASTSIGNS concept of high visibility centres that are more accessible to customers than the traditional sign company and we’ve been going for 16 years now. We moved into larger premises a few years ago and we’ve invested in new equipment, which has helped us to grow the business.”

Andy says the franchise provides a good living for the various family members who work in it, but explains times were hard at the start-up stage:

“I decided to move back home to cut down the amount of money I would need to take out of the business. So we lived together, worked together and even travelled to and from work together.

“But I’m glad I was involved in the business from the beginning and have done all the jobs that have to be done, which has given me a good understanding of every aspect of the business.”

## TOP TIPS ##

### PUT YOUR FAMILY RELATIONSHIPS TO ONE SIDE ###

John: I try to forget that Tom is my son and just focus on the job in hand.

Andy: since day one, I’ve always called my parents by their first names when we’re at work. I think it sounds much more professional than shouting “Dad!” or “Mum!” across the office. It also helps to set the scene and focuses us all on our work roles, rather than our family ones.

### BE PREPARED TO MAKE SOME SACRIFICES ###
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John: I can be open with Tom about the financial side of the franchise and he can see for himself what the business can afford.There needs to be room to increase his salary according to what he’s bringing into the business, but he’s got to be value for money.

Andy: I was only 25, but the thought of going into business appealed to me. I had no money to put into the franchise, as I’d been travelling, so when we decided to go for it I moved back home so that I could take as little out of the business as possible.This was hard because for two years we were in each other’s pockets.

### DEFINE ROLES AND RESPONSIBILITIES ###

Andy: in the early days my father was responsible for sales and I was the designer, so we weren’t doing the same work and there wasn’t much opportunity for conflict. However, now we have similar roles there are more occasions when we might disagree about how to take the business forward. So I think it’s a good idea to draft job descriptions for everyone to avoid any clashes. And be prepared to amend job descriptions as the business grows and roles change.

### DON’T MIX BUSINESS AND PLEASURE ###

Andy: we arrange set times to discuss the business. That way we don’t have to do it when we are together for a social gathering, as it’s healthy to keep business and pleasure separate.

### PROMOTE TRUST AND OWNERSHIP ###

John: Tom being here has changed the way the business operates. I’m not dealing with a third party any more and he’s not just drawing a wage as he has a vested interest in making the business a success.There is a greater level of trust and ownership than with someone who is not family. My wife also helps out one day a week and my other son, Max, who is still at college, has expressed an interest in coming into the business. He has skills that would complement Tom’s very well, so it could be the perfect scenario.

Andy: one of the major benefits of working with family is the loyalty you get. I know a few businesses that have gone under because staff have left and the owner couldn’t cope. We are all involved in the business and everyone is working for the collective good of the company and the family.

### SUCCESSION PLANNING IS A MUST ###

John: Tom is learning every aspect of the business and I’m happy to invest the time to show him the ropes, because ultimately I would like to hand the business over to him.

Andy: my father is looking to exit the business in the near future, but it’s proving hard working out when he should leave as we are so busy and in a healthier economic climate we would be taking on more staff.

### PUBLICISE YOUR FAMILY CONNECTIONS ###

John: Tom is very good with customers. He started his working life in a fish and chip shop, so he finds it easy to get on with all different types of people. On the whole, customers are impressed that we work together.

Andy: being a family business is reassuring for customers. It speaks volumes that we are committed to making the business a success and not a ‘here today, gone tomorrow’ set up.