The Young Entrepreneur Council asked 15 successful young entrepreneurs for tips on how to handle disagreements with employees and partners who are also family members. Here are their best answers.
1. Keep Up the Clarity
Have clear legal agreements in place from day one. Beyond the good practice of securing contracts, you'll have an impartial, non-family member reference point--should conflicts arise.
--Kelly Azevedo, She's Got Systems
2. Hire Slowly, Fire Quickly
As with other employees, business and personal issues have to be separated. Communication is important. Let the employee/partner know that the issue is not personal, and that the personal relationship does not have to be tainted by the professional issue. Don't let issues fester. Address them early and often.
--Lisa Nicole Bell, Inspired Life Media Group
3. Know Your Place!
Keep business discussions out of family dinners and other personal gatherings. Funny work stories are always welcome, but nothing critical or sensitive.
--Nick Tarascio, Ventura Air Services
4. Contracts Are Crucial
Don't ease up on legal documentation just because you're working with a family member. If there's push-back, explain that as a family member, it's even more important to have a contract in place so that everyone's on the same page. You don't want to split up a family over money. Get all the issues on paper before you get on the start-up roller coaster.
--Doreen Bloch, Poshly
5. Do Your Best to Be Fair
As simple as it sounds, it is sometimes difficult to be fair. Our relationship--family, friend, long-time employee--with the employee makes our decision biased. The best tip is to deal with them the same way you would to other employees (who are not your family or friend) in the same situation, without worrying about the rest.
--Devesh Dwivedi, Breaking The 9-to-5 Jail
6. Think Reasonably, Not Emotionally
Everyone responds to reason, even if it's a family member. While they might react emotionally (and you might be tempted to act the same way), make it clear that you're all looking to approach the problem logically and constructively, rather than get angry and therefore, get nowhere.
--Danny Wong, Blank Label Group
7. Outline Those Roles
Too often, people create a start-up and jump in without defining everyone's roles, especially with family businesses. Defining the roles from the start keeps you from stepping on each other's toes when it's not necessary, and it keeps everyone focused on what they need to get done in order to make the business a success.
--Ashley Bodi, Business Beware
8. Word of Advice: Don't Do It!
Everyone says it, but too few listen! It's a great feeling to get your company up and running and to finally be able to help out a sibling, a cousin, or even a parent by giving them a job. In today's economy everyone is struggling, so when you have the chance to help, you want to do it. However, it's better to leave them at home.
--Roger Bryan, RCBryan & Associates
9. Put Everything in Writing
I've worked with more than my fair share of family--my first job was working for my dad, and my sisters worked for me. What I've learned is that you have to write down everything: pay rates to responsibilities. You don't want to think of anyone as having a flexible memory when it comes to money, but family members seem to be particularly susceptible to that problem.
--Thursday Bram, Hyper Modern Consulting
10. Define Your Goals
This problem can be tricky, but can also be easily avoided early on. Be transparent about expectations and goals. A family member takes issues a lot less personally if he can clearly see that he did not perform well. Defined goals can help keep everyone in check and can help employees know where they stand, performance-wise.
--John Hall, Digital Talent Agents
11. Board to the Rescue!
A strong board of directors helps the founders do what's best for the company. Whether your board enables you to tell your family member, "The board is requiring that I confront this issue" or "The board has decided your separation from the company and here are the terms ...," boards can reduce the relational damage.
--Kevon Saber, Stealth
12. Separate, Separate, Separate
Separation is essential. I've worked with many family members, and separating work from the personal is key. Keep business confined to your workspace and handle the personal on your own time. Don't let the two overlap in either direction, or neither one of you will ever get a break.
--Nicolas Gremion, Paradise Publishers
13. Rework the Office Space
My father is a partner in my company. Initially, we spent almost every second of every day together, and we sometimes wanted to kill each other! Since you spend time together from a both business standpoint and a familial one, it's best to try and mix things up sometimes and work remotely, or in different areas, so that it does not become too much.
--Justin Beegel, Infographic World
14. Be Transparent About Flaws