Thousands of people go into business with family and friends each year, yet few of them realise the toll that working so closely with your loved one can take on your relationship. It is crucial to go into the business with open eyes and to discuss how you would cope with certain situations and disagreements.
Here are some quick tips to ensure your business venture doesn't end up a disaster.
Look at your family. Are you in good shape to run a business? If you doubt your ability to take the strain, bring in the professionals, sell up and be happy.
Watch out for warning signs of conflict before it happens – including complaints about unfairness, communication gaps, and indications of poor decision-making.
Be aware of the most common causes of family conflict, and head them off at the pass: overbearing fathers; frustrated children; incompatible siblings and family factions.
Don't let the family become insular and isolated from the outside world. Get reality checks from genuinely independent voices, outsiders and professionals.
Put a stop to story telling that caricatures, exaggerates, and divides the world into good guys and bad guys.
Don't set rules that turn into poisoned games of winners and losers.
Create disciplines through sensible structures and good governance practice. Don't trust to instinct.
Forgive and forget. No matter how bad things get, treat the present situation as a blank slate with no history.
Always remember to look towards the ultimate common interest that can unite your family, rather than at the issues that divide you.
Remember, your family culture is potentially a source of unique competitive advantage. Celebrate and embody your values.
About the author
Nigel Nicholson is a Professor of Organisational Behaviour at London Business School and co-author with Grant Gordon of Family Wars: Classic Conflicts in Family Business and How to Deal with Them, published by Kogan Page, www.koganpage.com, hardback, 288 pages, £18.99
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