When you have a small business, should you hire your family or friends? Here are some pros and cons to consider:
Pros:
- You know them; and they know you so the getting-to-know learning curve is non existent
- You trust them
- You know what they can do and their area of expertise
- They know how important this business is to you
- They know how you work (whether you are intense, easy going or high strung)
- They know how to deal with you and they can offer you the work complement you need (e.g. your father may be a great accountant and you need the expertise while you are great with marketing)
- You may be able to get the labor and expertise at a lower rate
Cons:
- They know you and may not take you seriously when you ask them to do the work
- Relationships can be affected if you are not satisfied with their performance or they are not happy with how you are treating them
- It’s harder to ask them to do something because you might be shy to ask them to do an errand and you will do the work instead
- They might not be prepared to deal with a different you — not as the friend or family member they know but as the boss
- Difficulty in adjusting to this new relationship and dynamics
It really depends on the extent of work and your relationship with them. In my opinion, though, generally, hire your friends and family IF AND ONLY IF the two of you knows when to separate the family/friend relationship from the boss/employee relationship. And that you both understand what you expect from each other, and know that it will not always be easy.
It also helps if you know that the family member or friend you are hiring can be a positive contribution to your business (e.g. if you know your friend is extremely flighty and unreliable, you are better off hiring someone more dependable and knowledgeable).
I’ve had a fair amount of success giving responsibility to family members. I’ve focused on four elements:
1. The person selected needs to be responsible enough to perform a certain duty.
2. The person needs to have sufficient skill for the particular duty.
3. I clearly write and explain the responsibilities to avoid misunderstandings.
4. I offer a reward or negative consequences if the person doesn’t meet the requirements.
Just going through this process helps me determine whether the person will be able to handle the chores or not.
I’ve had a fair amount of success giving responsibility to family members. I’ve focused on four elements:
1. The person selected needs to be responsible enough to perform a certain duty.
2. The person needs to have sufficient skill for the particular duty.
3. I clearly write and explain the responsibilities to avoid misunderstandings.
4. I offer a reward or negative consequences if the person doesn’t meet the requirements.
Just going through this process helps me determine whether the person will be able to handle the chores or not.
I’ve had a fair amount of success giving responsibilities to family members. Here are the elements I focused on:
1. The person needs to have sufficient skill for the particular duty.
2. The person should be responsible for the duty.
3. I clearly write and explain the responsibilities to avoid misunderstandings.
4. I offer a reward and negative consequences depending on the performance.
Just going through this process helps me determine whether or not the person is capable of performing the duties.
I’ve had a fair amount of success giving responsibilities to family members. Here are the elements I focused on:
1. The person needs to have sufficient skill for the particular duty.
2. The person should be responsible for the duty.
3. I clearly write and explain the responsibilities to avoid misunderstandings.
4. I offer a reward and negative consequences depending on the performance.
Just going through this process helps me determine whether or not the person is capable of performing the duties.