GOING INTO BUSINESS WITH FAMILY MEMBERS AND FRIENDS

Should you? Or, shouldn’t you?

People have wildly different opinions about whether it’s a good idea to go into business with family and friends, and for good reason. Personally, I have dreams of grandeur that in some situations it can go well, but plenty of my close friends and colleagues have warned me against these optimistic notions. Some have gone even further, warning me about near brushes with divorce over working with a spouse.

The biggest issue I’ve heard about is that you lose all sense of boundaries. Particularly with spouses, or partners, who work together—it’s never clear where the business stops and the marriage begins. They blend together and it can get rocky because no one knows their role. It’s often the same when people go to work for their parents—there’s a weird power balance in the office, or getting caught in the middle between other employees and the parent, or boss. God forbid, you get into a situation where you have to fire a spouse or family member.

In fact, according to psychologists, couples who work together experience an overload and interference. Overload because couples have insufficient time and energy to perform both as a family and business owner. Interference because work and family activities occur at the same time so it becomes hard to know when family begins or ends.

On the other side of the coin, the biggest upside of having family in your business is trust. In most cases… For example, with businesses like car washes, bars, places that are cash heavy, it helps having people up front who you can trust. As long as you trust your family members, they’re the best people to have handling your cash.

The other huge benefit to working with family or partners, is having someone there to be the rock. When everything’s going chaotic in your in business, you’re behind on your taxes, you’re bouncing checks, you’re trying to make payroll, you’re having to do all these things that an entrepreneur who’s starting up has to do, you need somebody there to hold you together. Someone who will put you back together and fix your wounds and send you back out to do more.

If you’re lucky enough to have that healthy business/personal relationship with a family member or partner, that’s great. If it becomes unhealthy with the family member for any reason, then the work should probably be removed because you don’t want to jeopardize the one person who you can count on above all else.

At the end of the day, whether going into business with friends and family is a good idea really depends on who your friends and family are and what your relationships with them are like. It could be the best situation—it could be the worst. So, get real clear on what kind of business partners you want. If your loved ones don’t fit the bill, or might not be able to handle your ambition, work with people you feel comfortable pushing and keep your loved ones safe from the ups and downs of the business life.

Do you have any experiences working with friends and family?

Reach out to me on Twitter at @bulldogcollins. I’d love to know what you think.

Listen to the full episode our new podcast, Chris Collins Unleashed, on Apple PodcastsStitcherGoogle PlayYouTube or chriscollinsunleashed.com.

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