For some, the idea of going into business with family is a no-brainer — they’ve got a great relationship, working together comes easy, and they can effortlessly collaborate towards their shared business goals. For others, however, going into business with family is a headache in the making, with nothing but drag out arguments and a future trip to a business litigation lawyer waiting in the wings. It’s best to know what likely outcome awaits before you give it a try, so here are a few pros and cons to keep in mind if you’re thinking about going into business with a family member.
The Pros Of Being In Business With Family
Perhaps the biggest upside to going into business with family is that you already know one another. There’s a level of trust, a level of respect, and a strong chemistry that you’ve already developed through knowing one another for years. All of this can be a powerful advantage, if harnessed correctly.
Consider this — you already know the other’s tastes, for the most part. This means that when it comes to anticipating what they’d like to do about a certain business decision, potential hire, purchase, or pretty much everything else, you’ll be able to do it better than with someone you don’t know.
And as for that bond of trust, if you have it, it’s something that’s hard to break. Most people put their family first for a reason, and since you’ve got that bond, you’re much less likely to be swindled out of a deal (though it isn’t impossible).
The Cons Of Being In Business With Family
Now, on the flipside, being so close to family, there’s a greater chance that one (or the both of you) will acquiesce to certain decisions just to keep the peace. While that might be great for civility, it’s not great for having ideas challenged in a way that will make them stronger.
What’s more, when things do go sideways, they can get pretty bad — perhaps even worse than with a non-family business partner — simply because you know each other so well and strong emotions might come into play. It can certainly be risky, to the point you find the rewards to not be worth it.
Make Sure It’s Right For You
Obviously, there are plenty of factors for you to weigh before making your decision. Be sure that in your situation, the benefits outweigh the risks and that you feel comfortable making that leap into business with someone who is so close to you. Read up on a few ways to keep your business partnership going strong, and be sure to keep those lines of communication open so there are no mishaps down the road!