by Susan Scotts
Are you thinking of a family partnership or working with a family? There are many benefits that come with family-run businesses, but with anything, it is important to consider all the details before making a choice to move forward.
My old boss used to say, “A partnership is a leaky ship,” and that can be especially true if the partner is a family member. I’ve been working in franchising for over 30 years now, and I’ve had the opportunity to see many partners, whether business associates, friends, or families, work together. I generally have a discussion with them altogether, then each person individually to help them really think it all the way through. I want to ensure everyone is on the same page so they can create a successful business for themselves and their families.
Here are some things to consider when exploring self-sufficiency with family members:
On the positive side, you are familiar with and know your family and may get along well with them. Of course, this would work to your benefit and be fun as well!
It is likely that your family members also know your strengths and weaknesses, especially if you work with a family member who has strengths other than yours – that could come in really handy! The trust factor is also a plus. Working with family often provides a higher level of trust than with employees; if you can’t trust your family, who can you trust?
However, sometimes mixing business and family can be harmful. If things don’t work out, think about having to discipline or fire your own family member. That could prove to be difficult.
Additionally, it could be difficult for your loved one to show you the respect you deserve and need in the workplace because of your familiarity with each other. That can invite further disrespect to others in the organization. They may even feel that the regular rules don’t apply to them since they are family, which may cause them to goof off or resent your authority if you have to discipline them.
If they know the accounting of the business, they may also cry foul if you are earning more than they are or don’t get the raise they feel they deserve.
And what if they do a sub-par job, call in sick too much, or come in late? Do you take action and potentially ruin the relationship? But then the other employees will surely notice and cry favoritism to the family. You won’t be able to win either way.
As you can see, thinking through all the challenging situations could go on and on and lead to a rift in the family or friendship that you cannot mend. Then how will the holidays be spent? some ground rules and guidelines and make sure everyone understands the rules. You may also like to seek legal advice to create a partnership agreement that is fair and create a clear list of job responsibilities to retain harmonious family dynamics. This should be your first priority. Because you can choose a business partner, but you can’t choose a family.
If you still feel like it is a good fit, and you have a compelling reason, set up some ground rules and guidelines and make sure everyone understands the rules. You may also like to seek legal advice to create a partnership agreement that is fair and create a clear list of job responsibilities to retain harmonious family dynamics. This should be your first priority. Because you can choose a business partner, but you can’t choose a family.
Susan Scotts is a Multiple Award Winning Career Transition Coach with The Entrepreneur’s Source® and possesses three decades of experience in helping empower individuals to become entrepreneurs through franchise business ownership. For a complimentary consultation, she can be reached at 561-859-9110 or SScotts@EsourceCoach.com or book a meeting