Small Business Management: Child's Pay

This article was about owners of small businesses and how they compensate their children who are also involved in the family business. This article contained significant points. Three significant points that this article made were about over compensating, market rate, and what is expected of the children to run the family business.

Over compensating may and may not be a good thing. It may be good in helping an entrepreneur improve their business because the child might think that since they are getting paid more, that more is expected of them. If they follow that rule the child will help out and benefit the business by going ahead and doing extra beneficial things or just going the extra mile. The downside however is that the child will do the complete opposite and not benefit the business at all.

Market rare is also good in helping an entrepreneur improve their business because it can help prevent the loss or "wasting" of money. I think a child might benefit from market rate in a sense that they do not expect things to be just handed to them and that is a good quality to have. It can make them appreciate the value of a dollar and maybe even appreciate their job a little more. You can always give them incentives and extra gifts to add a little more to their pay as well and to make market rate not so bad for them.

Lastly, what is expected of the child will help an entrepreneur improve their business because it will make their business run more smoothly and successfully. Having your child go to college, meet special qualifications or just do other things to learn more about the business will benefit the business, I think in a great deal. It will have them making better business decisions that can and probably will lead to a more successful and beneficial business for everyone. Knowing more is always better. You and your business will also not be taken advantage of opposed to people running a business who do not really know much