Don't let the Entrepreneur hire Friends and Family

Oh hello. How are you .

I have a great idea about hiring my family to run my business.

What do you mean this is not a good idea?

Oh I get it you think my family can't handle it?

You don't want me to succeed?

You don't think they can help?

You just don't understand my situation.

I love my family and I want them to be involved with my business!

   

What's that? I can have my business and help my family?

    

Fantastic! Just keep them separate. OK that works!

All too often we want to help our loved one and hiring family or friends is a common experience entrepreneurs face. Over the last decade I have seen families torn apart because they have co-mingled business with family connections. I have seen mothers stop speaking to daughters, husbands divorce wives, cousins separate from other cousins and I have learned to keep things separate is best. 

If you desperately want to provide for your loved ones then do it without co-mingling the situation. While there are many businesses that have successfully run a family-own business it has additional challenges that you have to strongly consider when pursuing this avenue.

I never ask entrepreneurs to find the funds from family or friends because I have realized how difficult this request has on the relationship. If you are going to venture down this path makes sure both parties are clear on the funding process. Determine if it is a loan, a gift, or an investment and whenever possible get it in writing. Whenever possible it is best not to hire friends and family but you can always gift them money when you start bringing in the funds.