Working With Family and Friends? Keep It Professional #Shorts

3 May 2023 · 1 min

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1:00

In this short advisory video, the speaker outlines six practical guidelines for successfully working with family members or friends in a business setting. First, all parties should agree to behave professionally. Second, proper legal documentation—such as equity records, loan agreements, and partnership contracts—must be in place. Third, expectations need to be detailed and explicit, covering decision‑making processes, conflict‑resolution methods, and core values. Fourth, clear boundaries should separate work from personal life, ensuring work‑related conversations stay at work and home time remains personal. Fifth, the high level of trust inherent in family or friend partnerships can be an advantage, but it also creates unique dynamics that require careful validation. Finally, while family members may be willing to accept lower pay, the creator warns to remain aware of the implications of differing compensation and relational dynamics. Following these steps increases the likelihood of preserving relationships while building a thriving business.

Chapters

Follow these 6 guidelines and increase your likelihood of maintaining your family relationships and building a successful business. 1, with family members on your team, agree to conduct yourselves professionally. 2, make sure you have proper documentation— documents that show equity, loans from banks as co-borrowers or to each other, and/or partnership agreements. 3, be more detailed and explicit about expectations. Things like how will you make decisions, Resolve this agreement, and especially discuss anything around what you each value. Whether you're partnering with friends or siblings or both, work to set boundaries to minimize spillover. When you're at work, focus on work. When you're at home, no work conversations. Trust and validate. Trust factor is high in these partnerships or hires. You know them, they know you. They might support you more, be willing to be paid below their going rate. But beware that having a family member in the business creates different dynamics.