1)\u00a0\u00a0\u00a0\u00a0\u00a0 The Founder \/ Controlling owner – where one person is running the business.<\/p>\n
2)\u00a0\u00a0\u00a0\u00a0\u00a0 The Sibling Partnership \u2013 a more complex and democratic system takes shape.<\/p>\n
3)\u00a0\u00a0\u00a0\u00a0\u00a0 The Cousin Consideration \u2013 widening the business to include extended family.<\/p>\n
We\u2019ve put together some pointers to assist you in going into a start-up business with family.\u00a0 Hopefully these will help keep relations on a relatively happy footing.<\/p>\n Define Roles and Responsibilities:<\/strong> Initially, if it\u2019s your business, you may naturally be the leader and decision maker. \u00a0But as your start-up grows your family partner will have additional roles to play and responsibilities to bear. At this stage, clarify their role by defining them as a leader and give them a title that shows they are a key decision maker. Having a partnership agreement in place as soon as possible is also a great tool to guide your relationship and the business into the future.<\/p>\n Be Honest About Strengths and Weaknesses:\u00a0 <\/strong>Another difficult one! You think you have a great creative eye while your sister believes she\u2019s an excellent marketer, but six months into the business you may both need to reassess your skills.\u00a0 It will help here to have someone outside the family to step in and do a small business assessment to guide you along the way.<\/p>\n Flag Commitments Ahead of Time<\/strong>: There\u2019s nothing worse than having a deadline plus a sibling who has a family commitment and can\u2019t deliver on expectations. You\u2019re caught in the middle because you know what the business requires and what the family commitment involves. You\u2019ll need to be careful about scheduling processes from the onset of the partnership, but disappointments will happen. It\u2019s dealing with these situations fairly and learning from them that will guide your business from strength to strength.<\/p>\n![\"Start-Ups](\"http:\/wp-content\/uploads\/2016\/02\/Start-Ups-and-Keeping-it-in-the-Family-2-300x200.jpg\")
<\/a>It\u2019s good to have these potential stages of growth clear in your mind before you activate your start-up, so you\u2019re aware of the extended partnership a family business may become. From the onset it would be best to have a clear idea of how inclusive you want to be with your business. This will mean your vision for growth is relatively clear and you can manage family expectations along the way. Also, having clearly\u00a0defined\u00a0systems in place will\u00a0distinguish between business and\u00a0family matters. Just a note here in terms of priorities too: A broken business is easier to fix than a broken\u00a0family relationship. \u00a0<\/span><\/p>\n![\"Start-Ups](\"http:\/wp-content\/uploads\/2016\/02\/Start-Ups-and-Keeping-it-in-the-Family-1-300x200.jpg\")
<\/a>Be Transparent About Money:<\/strong> This can be very tricky, but people working closely together will invariably find out what you are earning and billing, even if you don\u2019t tell them. So it pays to be transparent about money from the onset, and honest about recognising the value of family members within the business. As soon as you\u2019re at a level that warrants it, employ an external bookkeeper or accountant who can field money queries if necessary.<\/p>\n
![\"Start-Ups](\"http:\/wp-content\/uploads\/2016\/02\/Start-Ups-and-Keeping-it-in-the-Family-3-300x212.jpg\")
<\/a>Schedule Reviews<\/strong>: In keeping with the information in the Stages of Growth article, schedule official reviews with each other every six months to decide what the business plan for the next six months will be. Minute the meetings, refer back to the last meeting\u2019s notes \u2013 are expectations being met on both sides and is it time for change?<\/p>\n