Nov 30 2011
If there’s one no no I know of in business it’s that you should never do business with family.Â Hell I even think that doing business with friends is highly risky.Â Â Don’t get me wrong, there are some rare cases out there where a husband and wife run a successful business or a couple of brothers kick ass.Â And we know there are plenty of family owned businesses out there.
However, let’s get one thing straight.Â This is not the norm.Â Â These are highly disciplined people who are able to put family aside to run a profitable business.Â Â Â Remember, these people are NOT normal.Â Why?Â Because for every successful family venture there are tons that fail, just like any other business.
So I’m here to tell you, if you’re thinking of going into business with a family member, don’t.Â And here are five reasons why….
Never Mix Finance with Family
Have you ever borrowed money from your parents and had the kind of parents that are a pain and bother you to pay them back?Â Isn’t it awkward?Â I mean, they’re your parents right?Â Yeah well just think of that kind of scenario only you’re not borrowing money.Â You’re sharing it to make a business.Â Or maybe you’re paying a family member a salary.Â Â Whatever the case may be, mixing finances with family is very dangerous.Â Â It can lead to resentment, trickery, sneaky behavior, you name it.Â Â It’s just a no no.Â Unless it’s your own wife or husband, sharing financial information with family members is usually more harmful than good.
Anything involving a hierarchy will be problematic
I know two guys that are brothers.Â One is the owner and the other works for him.Â Â It’s got problem written all over it.Â Â Can you imagine having to work for your brother?Â Screw that.Â Â It’s one thing to work for a parent.Â You’ve been their subordinate your whole life.Â But to work for a sibling, let alone one that’s younger than you can be flat out awful.Â Â Feelings of resentment would arise.Â Â The whole ‘Big Brother’ thing is kind of wiped out the window because you’re now working for the guy.Â Â It’s just bad, really bad.
World’s Colliding is a No No
Imagine a family member works for you.Â Said family member is doing a horrible job for you.Â Â That very weekend you go to see his kid’s baseball game and attend a party afterwards.Â How do you treat that family member?Â You can be damned sure it’d be different than if they weren’t working for you.Â Â How you work together will affect you outside the office, no matter what you say.Â It’s inevitable.
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