The importance of Having a Plan When Including Family in Business
In this article Jolene Brown, a family business consultant points to four major mistakes when breaking down a family business. She firstly points out that assuming all genetic relationships equal good working relationships is wrong. Brown says “acceptance in a family should be unconditional, but acceptance into a business should be conditional and is not a birthright.” Her second suggestion is to stop believing that the business can financially support any and all family members who want to work together. Brown suggests checking your business’s financial ratios to see if you are financially capable of paying them. Brown’s third tip is to stop assuming others should change, but not themselves. Her final tip is to avoid presuming a conversation is a contract. Brown mentions how if the contract is verbal then it does not count until it is written on ink.
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