Idea to Action quote: A friendship founded on business is a good deal better than a business founded on friendship - John D Rockefeller.
When you are starting out in business chances that your first clients will be family are high. It is also quite likely that family will be your first employees This is because you start working with your existing network and build the network as you grow. Family are inevitably a big part of your network.
My experience with working with the family can be summarised thus: family is no more or less motivated, dedicated, honest, skilled or experienced than any other person. Yet, when you fall out, the ramifications go further and deeper than with other persons. This is because there are two connections here: the business connection and the family one, and severing the former can hardly be done without harming the latter.
How can you minimise falling out with the family over business relationships?
1.Talk about it. Use the opportunity at the start of the business relationship to set boundaries. Don't assume family knows that it is a business relationship and will behave appropriately. Put the issue on the table and talk about your expectations.
2.If the family member is going to be suprvised by someone else, let both the superviser and the family member know the appropriate hierarchy. It is best to say this in front of both. This allays the supervisor's fear that your family member is a sacred cow, and sends a message to the family member that as far as the business is concerned they are simply one of the team. Remember to respect that same hierarchy yourself.
3.Enforce the same controls as you would with non family members working with you. Have them sign the same contracts or agreements as any other employee or partner would, and let them be subject to the same rules and regulations.
4. Do not discuss business matters at family gatherings. And, in the same vein, do not discuss family matters at business meetings.
5.If the business relationship should flounder, do not automatically break family ties. This is easier to manage if you applied 1 - 4 above.
6. If you cannot enforce 1-5 above, then better not employ family. You could always find other ways to support them.
7. Finally, to the extent that friends are like family, all of the above applies to them.
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