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Hi Everyone,
Have you ever hired a close friend or family member to help you with your new business? If so, did you have any luck, or was it a nightmare? I`d love to get some opinions on this.
Thanks!
Melanie
Melanie,
You`ll probably wind up collecting a bunch of ancedotes with this question, but I do have my personal, real-life experience with hiring or partnering with friends.
I`ll try to keep this brief. I used to work for a technology consulting company back in the early `80s and I got this friend of mine hired on with the same company. She got good reviews, etc. Then I left the company to start my own consulting business. After about a year, I convinced her to come on board with me as a partner, she would work up to a full 50% ownership in the entire company after 2 years of working with me and helping me build the business, but she would get 50% immediately of all new business that she brought to the table. Not bad for not putting any money into the deal, just bring new business.
After about a year and a half of no new clients, and running off two of my existing clients, it was time to part ways. That was tough! I risked my friendship with the business, but this one turned out OK. She was tired of not making money, I was tired of her not making money and losing me even more, so we both agreed it was best to part business company.
We remained friends, seeing each other and our spouses for several years after that until they moved away.
Bottom line: Tread cautiously. If you must us them, agree that it will be only on a temporary basis until a definite goal is reached, one that is clear, objective and measurable. That way the criteria for parting is recognized by all.
If you are considering giving someone a job to help them out, you`re asking for long-term trouble. Eventually human nature will take over and either they will feel resentment at your good fortune, or you will resent them free-loading on you.
No matter who you hire, always have a clear understanding of what work they will perform, the payment terms for such work, the criteria for evaluation for performance reviews and the criteria for terminating their employment. Be objective, clear and in writing.
I hope this helps.
I tried hiring family and friends into my businesses... mixed results ensued.
My worst was tryhing to hire family, I would definately opt against sharing your business with any family other than you spouse and/or children. I`ve found that others will try to wrnech your business away from you based on their "life experience" or trying to "save you from a terrible mistake". Just my experiences, but, I`ve also had friends with similiar ones.
As far as friends, the biggest peoblem to overcome is, can they create a line and keep it wherein they say "Point A, I am your friend, Point B, I am your colleague", and not get those two points confused? I`ve lost a few friends due to their inability to keep these two points straight. I`ve also gained some, due to their ability to seperate those points, and help nourish a friendship from a business meeting.
I think the most direct advice I can give is:
1.) Don`t show preference, or give them a "special" chance/ leg up because they know you.
2.) Don`t treat them any different than you would anyone else you went into business with, and let them know you expect the same. (This includes titles and/or taking orders no matter if they are "above" you or not elsewhere.)
3.) Have a clearly defined job role, and stick to it. Don`t suprise them with suddent expectations, and don`t allow them to change their job role "because you love them" or are "buds".
Hope that helps -- it`s all I can think of right now.
Thanks for your input Rojgiean. I appreciate it! A lot of people are completely against hiring family and friends, and it is easy to see some of the many problems that can arise.
Melanie
A lot of people refuse to hire friends and family due to them not being able to see how to work with them. With clearly defined rule, if both people keep true to them, then it is possible...but rarely can you find friends and family that will follow the rules you initially lay out. I think that`s why so many people are against hiring them!
Like I said, I have been down that road before, with disasterous results... so I can see why they would be leary -- but I don`t think that most people would "get burned" and willingly open up for the same thing to happen again. I guess I`m just too trusting...lol 
Thanks for your input! From all of the feedback I`ve received, it seems like there are a lot of issues to deal with when hiring family and friends. For new entrepreneurs, this is really something to think about prior to moving forward with hiring efforts.
Thanks to everyone to gave me their thoughts on this,
Melanie
Hello Melanie,
Having had experience with both family and friends and working with them, in the past, I would suggest NO! Don`t do it! I almost lost my relationship with my sister as she thought that being my sister she could "slide" as to not working all day as required.
My best friend Paul S. was aslo on the lazy side but also drank too much and thought he could get away with it being my best friend. He is no longer my best friend and I really hurt by what came about.
DON`T DO IT! It`s just not worth it.
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