Why Working With Friends And Family Could Cost You Your Business (And Your Friends And Family)
Father and Son
They say 9 out of 10 business start ups fail in the first year. You may ask why? Well… It could be down to a number factors – from poor choice of market to inadequate abilities (let’s be blunt about it). The business graveyard is riddled with such examples. One specific consequence (and potential cause) of business failure that seldom is discussed is regarding the number of broken relationships as a result of such failures.
Families have split, as have friends, spouses, siblings, cousins, uncles, neighbours…(Need I go on.) It’s common in the cut-throat world of business that individuals with an initial spark of an idea and the drive to take it further tend to bring in familiar acquaintances to further their venture. For sure it spreads the risk, and it’s fun to have someone there as you ‘count the chickens’. However, previously established relationships with such familiar acquaintances also have previously established boundaries.
Strictly Business
We’ve all heard the business maxims – ‘Business is Business’ or ‘Business Never Personal’, Nevertheless, Can a husband and wife really work well together? How about best friends? Fathers and sons? Could negative experiences of the business spill over into the non-working relationship? Well the answer to both questions is yes and no.
If one were to work with someone they didn’t know too well both parties would surely ask the right questions. Who does what, how are they going to be remunerated, how are decisions to be made and so forth. Unfortunately with known acquaintances the whole process is run a lot informally. The substantial questions are often skated around if ever asked. Assumptions such as “I know them and they’ll be ok if I do…” often are the norm. Such ‘psychic’ insight more often then not is a recipe for wires being crossed and ultimately relationships being damaged – as well as the business in question failing.
Why do you think ‘extra curricular’ relationships between employees of the same company is time and again frowned upon in the corporate world? Certain decisions lose their ‘neutralness’.
So what can be done? Are all Father and Son businesses doomed to fail? Should old friends never even think about new ventures together? Well….
When in business assume all parties are strangers.
If the right questions are asked and discussed frankly the heartache and the headache may well be avoided. I write this piece out of experience….unfortunately.
