Family members start a major portion of new businesses launched in the U.S. every year. Brothers come to mind, of course.
Whatever the family ties, however, starting a business with a spouse, parents, siblings, children or other family members presents unique challenges over and above the usual problems a startup faces. That’s why only one in three family businesses survives to the next generation.
In the startup stage, the dangers can be especially acute. Family members sometimes join the excitement of a business startup without a clear idea of their role once the business is underway. If family is involved in your startup venture, you should be clear up front about compensation, exit plans and other details before they become a problem.
We’ve given this a great deal of personal reflection and come up with 12 essentials for striking the right balance when starting a family business.