Forums: Discussions for entrepreneurs and small business.

Obviously the Sloan`s are a great example of how a business can work when family is involved but I have heard many horror stories of ruined relationships and had some questions.

Recently my brother and I had discussed some ideas for a company and had come across one that had both of us jazzed. Two weeks have gone by and I`ve registered a couple domain names, done a little research, and threw together a quick place holder website. When I talked to him a couple days ago he had discussed collaborating with another person on nearly every aspect of the company. They had even discussed this other contact providing financing, the website design/programming, and what the split would be. Even after I had expressed interest I notice reservation in my brothers voice.

My question is how do you go about evaluating whether or not doing business with family is a good choice? Is it a matter of setting expectations early (like any partner) or is there more to it? If I`m even asking this question is there reason for concern? When your young fairness between family members is very important but even now I sense this feeling of “I want to make sure your doing as much work as I am” even possibly to the detriment of that persons particular skill set.

PS I would love to have a chapter/podcast on partners (family or otherwise) that kind of breaks down logistics on some level. Thanks!

Netrix,
Unless you share some DNA along the line with JEFF and JOEL. I would say go for it, partner up with your family member.. (HOW DO THEY DO IT?)
Other than that... Don`t do it, save yourself the hassle and the emotional stress that one goes through when partnering up with a family member. Answer this question "Do you like to sit at the same table with your brother during Thanksgiving or Christmas?" If you decide to go into Business with him and something happens along the way, you`re going to spend a few Thnxgivings and X-mas`s by yourself..

Secondly, I think you can do it on your own. For the past week I`ve seen your postings and not anyone elses. Which leads me to believe that; you will be the one doing most of the work.
So save yourself the trouble.. You have a bigger Family now... The Start Up Nation Family.



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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Edgar,

We are absolutely one big family in the StartupNation community - what a fantastic observation! Like in any family or relationship, the more you contribute & communicate, the greater value all receive and the stronger the family bond.

The StartupNation team family is very strong as well, and I believe it is that working toward a common goal with our family-like style that shines through to the entire community.

Just like in many families, the members get confused sometimes, so let me make clear that the Sloan brothers, Jeff & Rich share the blood ties. The rest of us are absolutely brothers & sisters in arms.

Welcome to the family Netrix!

Edgar - Thanks for the vote of confidence! I really appreciate it. Thanks is great to be apart of a community like SUN especially if I do end up going it alone!

Joel - From the way the book reads there was no doubt in either of the Sloan`s minds that partnering together would be a great choice. Do you have any recommendations on picking parters (as apposed to hiring employees that are part of the "family")? Thanks again I`m glad to have read the book and think the community provides a great service.

Netrix,

It`s terrific that you`ve read the book StartupNation: Open For Business. Have you created your Life Plan yet? It`s step 1 in our 10 Steps to Open For Business.

A good start to identifying a partner would be to find someone who`s Life Plan is compatible with yours. You might also consider how you`ve worked together on other projects if it`s someone you`ve known for a while. The best of friends or closest family members may not work in harmony with one another, while often those who bring different gifts end up filling each other`s gaps in a wonderful partnership.

Yes, I`ve created my life plan but never thought of it in the sense of a evaluation of whether your potential partners values are the same. The idea of working together is attractive as he has a completely different skill set but I don`t believe we have the same values. Thanks for the advice!

I`d stay out of a partnership with Family.  Reason being is *if* things don`t work out you don`t have a life long family riff... Freindships come and go.. but Family... nahh....

 

I wouldn`t go there..

 

 

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Bryan C. Fleming

http://www.BryanCFleming.com

key things to look for in a partner include:

• ability
• mutual respect
• loyalty
• commitment
• resilience
• flexibility

you may think up others. you may also decide that some of these are more important than others. for me, i`ve always gained great confidence knowing that my brother would be there no matter what, through thick and thin. the loyalty is beyond question. for this reason, i hold doing business with family as a GREAT thing to do. but to bfleming98`s point above, you have to have the other qualities i mention above or it`s a recipe for disaster.

fyi, most U.S. businesses are family businesses - 80% of them are according to the University of Wisconsin Family Business Center.

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

your wish is our command, netrix! this is a great idea. we`ve done articles on this and a podcast is in order!

best,

rich

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

Everyone has good and bad stories about this, but all in all I think it depends on the relationship between you and the family member. Be careful to keep the leadership hierarchy in charge. Not the personality or persuasive family member.

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