Running a business can be challenging enough without adding any extra complications. There are many successful examples of impressive businesses run when family members or friends share a committed goal and the desire to add a professional component to a very personal relationship. We suspect, though, there are even more tales of things going wrong.

Entering into a business relationship with anyone is a serious thing and needs to be managed well to boost your chances of success.

Thinking of going into business with family and friends? Mums and Co wish you every possible success.

Here are some tips that might help make your journey smoother:

Remember – relationships always come first (except for the times when business comes first)

Petty disputes aren’t worth giving up a lifetime of familial bonds – or an important friendship. Don’t dig your heels in over little things that don’t really matter – especially if it sees you run the risk of damaging some long-standing, meaningful bonds with people you really do love.

But every now and then, business is business. Just because you’re in business together, friendship should not be used as an excuse for behaviour that is unfair and business-damaging. Not everyone is cut out for business management and if someone really isn’t pulling their weight and they make it obvious they don’t care as much as you do and – on top of that – they are making decisions or displaying actions that are obviously taking advantage of their position in the business, just because they are a close friend or family member, it’s time to cut them loose and move on. The trick is knowing when to do it…

Define roles and expectations

When individual roles and expectations are clearly defined, there is less room for error and misinterpretation. 

Set the rules at the beginning and establish individual roles that enable the talents of each unique individual to shine.

Set the standard

By proudly putting in your best effort, you’re showing the standard that you expect them to give in the business too. Don’t take it too far, though. If you start to display work-a- holic tendencies and you’re always the first to arrive and the last to leave, the pressure on others to over-extend themselves may cause cracks – as well as putting pressure on your own good health and wellbeing. This all comes back to the previous point of defining roles and expectations. If everyone understands what is expected from them at the start, the business will build with positivity, rather than resentment.

There’s more to life than business

One potential problem about doing business with family and friends? It’s always about business…

Make sure you remember the fun times and don’t step on every family gathering or celebration with discussions about strategy and 5-year goals. Your cousin’s wedding is still just your cousin’s wedding – not an excuse to have a board meeting in between the speeches.