Hiring My Daughter, What And How To Pay Her

Business By susaneholcomb Updated 1 Jun 2015 , 8:59pm by susaneholcomb

susaneholcomb Posted 25 May 2015 , 10:39pm
post #1 of 5

I am hiring my daughter to work with me in my cake business. I have gotten so busy i need her help. The question is how do i pay her? do i pay hourly or a % of each cake. 98% of my business is weddings and want to pay her fairly, but don't know best formula.

I am also considering her becoming a partner after 1 year. Any suggestions of how to do this? Should she buy in or build her % over time through sweat equity?  Just would like some opinions on this matter.

4 replies
Pastrybaglady Posted 26 May 2015 , 4:21am
post #2 of 5

Interesting question...  How old is she?  If she's a teenager I would pay her the going minimum wage.  If she's out of school and she's interested in becoming your partner I would go with the % over time with skill building and sweat equity.

julia1812 Posted 26 May 2015 , 4:32am
post #3 of 5

Wow. Tough question.  That can be the start of a family drama or a wonderful work relationship/partnership.  Don't know neither of you that's why I find it hard to say "do xyz". Best in my opinion is to sit down and have a chat with her. What are her expectations? Tell her yours too. Find out if she wants to become a partner at all. Find out what other cake decorators get paid in your area. Maybe start out with a three months work contract. That gives both of you the chance to back out without too much of a bad feeling in case... And then reevaluate the situation after the "trial period".

johnson6ofus Posted 26 May 2015 , 5:06am
post #4 of 5

We did something similar with our kid. But it was construction/ building but same theories could apply:

Phase 1: Pay for ALL costs and supplies. Pay "kid" minimum wage ($8) , pay "parent" double minimum wage ($16).

IF money was left over (which it was)

Phase 2: Pay kid an additional ($4) and pay parent additional ($8) (so at this point, kid makes $12/hr, parent makes $24/hr)

IF money was left over (which it was)

Phase 3: any remaining profits split 50/50


The theory was, cover costs and minimum pay for all, then increase to a "experienced level", and then share in some profits. Also, my kid could put in any hours he wanted, and all that did was increase profits--- so he got paid AND benefited (and parent got to reduce hours). Avoid using the word "partner". You built the business, you own it. That doesn't stop you from paying her well. BUT, in the event of any marriage/ divorce----you still own the business. 

Negotiate LOW and leave room for "bonuses". Kid will never fell bad or cheated if you give them more, but no way you can pay less...you know? 

susaneholcomb Posted 1 Jun 2015 , 8:59pm
post #5 of 5

thanks for the input. She is an adult 30 and a school teacher. she started learning the art of cake decorating this year. i had her work the crazy wedding season for 32 months with me to make sure she was willing to put in the hours and still love the job. We are now about to be past the crazy season and want to sit down with her and start paying her something. i want to be fair, but also make sure i still keep enough to support myself. i was thinking about paying her a $ amount depending on what she does for each cake. for example, if she bakes then X% of profit of cake. Decorate from start to finish X%. Does entire cake start to finish X%. i am not sure about paying her hourly since that would be a night mare to keep track of. I agree with doing more bonuses than anything. i gave her $500 this last month for all the help she did while learning in April and May. Any thoughts on my idea would be great. She and I work well together and She would only be helping in times of need since she works full time. thanks again for your feedback.

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