Forums: Discussions for entrepreneurs and small business.

Should I hire my relatives or tell them to start their own business?
My upstart business is about 2 years in the making (first in my head and now I can finally see it start to come together.  I hope to be up and running  in less than 2 months.  I think other people are starting to realize that I may have  hit on something innovate and filling a need in a market that has no competition yet
in my area. Which will probably be successful in a matter of time (I hope anyway  Since yesterday I have had 3 family members come to me
to tell me of their interest in my baby upstart business.  I am confused to say the
least. They are qualified, that`s not the problem.  I just don`t know if it is good business sense to hire your family?.    Any suggestions for me ?
Don`t want to affend any family but down the road - don`t want to make them
enemies either if something goes wrong !!!
Appreciate your comments guys. THANKS !!!
jo


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Jo
NJ

Thanks very much, I feel the same!

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Jo
NJ

I have been on the loosing end of this equation. To make the
story short, the business was started by my grandparents and
has provided everyone in the family a wonderful success story.
Soon the time came, I thought it would be a good time to ask
my father to enter the business. I knew there was a recent
opening. I thought the position was perfectly placed, being it
was on the bottom. Literally, I was a janitor.

Looking back, I think the journey gave hope that my father and I
would be closer. He and I have always been on good terms,
but we don`t have the same loves. Also, I did see long-term
independence to be gained. What an opportunity. I figured if I
was willing to start at the bottom, eventually family member
would realize my commitment.

Several years later, do to exterior family issues, I was forced to
resign. No matter who supported whom in the family, what was
done was done. My father and I didn`t talk for about 2 years or
so. I am glad we are talking again. If I had it to do over, I know
the result would be the same. We both did our best in the
situation as presented.

I vote NO on hiring family. If it works out, it`s great. But if it
doesn`t, there is too much to loose.

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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

Thanks Vincent for your thoughts. I`ve been mulling it over all day driving myself
nuts, but I feel peaceful now with my decision. I think its a lousy idea myself and I think the best thing for them would be to do what I did. It was and still is a lot of work and determination but I always felt it would be worth it someday or I wouldn`t have gone down this road. Maybe they should think about starting their own business like I did. If it didn`t work out (and there is a big chance in that) then we may never talk again and what`s worse than that?




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Jo
NJ

The thing with family coming into a business that you have already started is that they usually take on an attitude of ownership through association. My personal experience is that they have a tendancy of taking on a superiority role with you, any employees that you have, and clients. If they are an employee under you, they have a tendancy to take an attitude that they are more of a partner than an employee. Causes problems when you want them to do something that they don`t want to.

Totally different animal is you do actually bring them in as a partner, but that too can open up a can of worms if you are not careful.

Really looking forward to seeing Rich and Jeff`s take on this.

Thanks Engraver for your take on this.  You really hit it on the head, so true.
I was thinking the same thing, I have been working on this business for close to 2 years from the time I  first thought about the possibility to now  with almost all of the infrastructure completed. No one was negative about it but no one offered any help either.


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Jo
NJ

The same holds true for the company I am currently working on. I have been going through all sorts of issues getting it started. Been working on it for almost a year and a half now. I actually had family and friends telling me that it was probably not going to work, but now that I am in a position where I have people coming up to me talking about doing business with me as soon as I get set up, they see the profit potential and now wnat to give their advice and assistance. I have a cousin that actually told me that I would never get it off the ground who just recently offered his assistance along with some unsolicited advice on marketing. It might have been rude but I told him I didn`t need any more assistance. Told him that you can`t jump on a moving train and that he should have gotten on board when it was still in the station. Cocky? of course, but hey fair weather business partners are like fair weather friends, only around when things are good.

You don`t get the same objectivity from family members (and that includes spouses)...but on the other hand you get paid back in truckloads of support.  Just something else to consider.

Engraver,
I dont blame you for feeling this way, it is of course normal and appropriate to
feel this way.  I guess some people either dont remember what happened in the
past or they prefer "not to remember".



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Jo
NJ