It is well known that most small and medium sized businesses are family affairs or are based on partnerships. And while businesses involving family and friends can run smoothly and be successful, there are some key factors to consider before mixing family, friends and business.

1. Your Relationships Are More Important Than Your Business

Fortunes are made and lost. Businesses succeed and some do not. Family however, marriage and close friendships, need to be protected.

Sarah and I decided very early on in our own businesses not to employ family or friends. We counted our relationships as more valuable than our business and frankly didn’t want to mix the two. This has held us in good stead. The people we have employed have been employed solely on the basis of their attitude, skills, expertise and suitability for the role and decisions about their employment haven’t been clouded by an existing relationship. While we have employed some great staff, and in some cases friendships have developed from staffing decisions, this is a bonus.

And if like Sarah and I you are going into business as a couple, make sure your relationship comes first. If your business is impacting negatively on your relationship something needs to change in order to protect your relationship. This is not just a good life choice; it is a very good business practice. Relationship breakdown can sink a business.

2. Be Clear About Responsibilities and Commitments

If you are going to work with family or friends responsibilities, expectations and commitments need to be clearly stated. Write down areas of responsibility and stick to them. Formal written agreements can save relationships and strengthen the business.

As a husband and wife team, Sarah and I have worked hard on ensuring that we know exactly what our areas of expertise are and we highly value each others strengths and abilities. We trust each other. In Sarah’s areas of responsibility, the buck stops with her, as in my areas, I have the final say. These principles have served us well during over a decade of doing business together.

3. Balance

Keeping family and friends separate from your business can also assist in keeping balance in your own life. It is important to keep perspective and have relationships and interests not impacted or influenced by your business. However, if you do decide to go into business with the ones closest to you, ensure at close of business each day or when you walk out the door that you leave the business talk for business hours only. When at home, be at home, when at work, do the work stuff. In other words, be where you are.

Owen Watson
Founder & Director,
Brick Pig Coaching