Family and business?

[Deleted member 403]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

 

[roman roxas]

If worse comes to worst though, differences can be easier settled within your blood. Not like if you have a business partner not related to you which could end up in court settlements. And also, I still find it appealing some Chinese companies that are run by the whole family, and that is from generation to generation.

 

[Ralphjoe]

Businesses and family most times don't go hand in hand as there are always going to be issues both legal or otherwise that will rise up in such a situation.
This reminded me of my neighbors who quarrelled often because of the business they are both managing, the father always accuses his son of squandering the business money on clothings and latest gadgets. This quarrells most times even leads to physical scuffles between them till it got to a point that the son left home, no one has seen the guy till this very day.

 

[Josemendez]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

I think this is a matter of understanding between the family members. I have seen a family business that have survived years of peaceful existence. Issues may come but if there is true love among the two parties , it will be resolved

 

[WhiteHouse]

It creates a kind of Cooperative synergy

To place it in another manner, when there is no basic agreement or reason for imaginative collaboration, at that point, no cooperative energy is conceivable.

Cooperative synergy is the point at which one in addition to one equivalents at least three.

So it is a smart thought to set out some sort of structure, which at the public level is known as a constitution, to qualify or preclude somebody to join a business or task.

For instance, for an individual to be acknowledged as another resident of a nation, the person in question should know and adore and be faithful to the nation. On the off chance that he means to separate himself in his condo or land, at that point the individual in question isn't fit to be another resident.

This structure isn't subjective. It is a demonstrated disposition towards main points of interest.

 

[Presido]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

Youy right sir, I have once witnessed a very similar issue where by the son was the general manager of his father's company, so at a point in time, they had misunderstanding and since then the business have been both economically and financially unstable

 

[Adegbindin Abdullahi]

Going into business with family members or adding someone from your family to your team after you have expand can seem like a good idea on the surface since you may feel like you can trust them more and be more comfortable around them

 

[Trexxxy]

Definitely, I think it is best we keep people we are closely related with out of our business. There was a time I had a joint venture with my brothers , if one of them needed funds for something urgent,he would want to take the fund out of the business finances, sometimes it leads to fight and we end up not talking for days. The sometimes sour business relationship has transcended into our personal relationships. I personally wouldn't advise it

 

[Damismiling]

A lot of business I know had crashed because family is not separated from the business, many people run business like charity when dealing with their family members, this has collapsed many business, it is very wrong to allow family interfere into business, business is a separate entity infact the owner of the business and the business are two separate entity, because I own a restaurant does not give me privilege to just consume many wine as u like! I should pay for anything I take then only can the business grow

 

[Tunnexisco]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

In Africa here, most especially Nigeria as a case study. It is known fact that when a father owns a company and son works under his as an employee, either sooner or later the son will emerge as the director or manager of the operations within the organization or business venture, this term is called "Legacy". But, when a disagreement sets in between them, it depends on the type of personality they likely conform. But, I believe that the inter-personal issues should be settled out of the business without transferring the matter into the extent that could cause dissolution of the business agreement.
Talking from experience, i once saw a father doing business with his son, and later the father retired leaving the son to take mantle of the business control, and thereby see to the smooth running of the business. However, running a family business is not a barrier to determine the success of the business, but it defers from family to family.

 

[Adeyoola7]

The importance of trust

Whether you’re a recent college graduate, as I was, or a professional transitioning careers or industries, a steep learning curve is a prerequisite for success. Choosing a partner that you unconditionally trust will melt away the kinds of inhibitions that come along with a lack of confidence in peers and mentors.

2. Shared vision and expectations

It’s critical to communicate about the objectives for the business venture prior to entering into any type of relationship. If your cousin is aspiring to build the best local neighborhood pizza shop, utilizing your family recipe, but you are looking to create the next national pizza chain and dethrone Papa John’s, you’re almost certainly destined for failure

 

[kaychiz]

I share the same sentiment that family and business should not mix. Many times when family members go into business together, they tend to take some vital things for granted. Emotions usually take the center stage when important decisions are to be made. Such an arrangement will require a great deal of self control and objectivity to succeed.

 

[Ridorz]

I didn't support the ideas of family and business. especially, father and son because if the son need money he would take the money and spend it without the authorizing of father and that may cause a big problem between them.

 

[Niftyyem]

In the scenario of a father and son, it may be a bit difficult because, where I come from, sons are seen as apparent heirs to their fathers' properties, so, I doubt a father will evict his son. However, in the case of other blood relatives, I would not advise mixing such relationships with business.

 

[kayode10]

Family and Business are things that should not be mixed together without proper legal documentation. If fact this has ruin lots of aspiring business and blossom family.

A billionaire once narrated to me and my friends how went bankrupt all because he entrust his entire business on his son who was still naive about the whole system.

The son made some bad deals with investor and acquired unnecessary loans from the bank. This has caused the billionaire a great depression because he is in his old as rebuilding of the business is nearly impossible for him

 

[Mary]

Yes, that's true, Business issues should be considered different from family issues, a misunderstanding between family who are also business partners should be easily without any effect on their business

 

[Farhan Aslam]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

You are right there are many difficulties and troubles in doing business with family.That's what happened to a friend of mine. In the beginning, he did business with his brothers and the brothers got all their property and made it their own. As time went on, when they separated the business, they did not give anything to my friend, but had registered all the property in their name. That is why whenever a business is started, all the demands and statistics must be met.

 

[Aumeabbas]

I've heard that starting or doing business with a family member or relative, can create many legal problems as well as relationship issues. For example, a father letting out a house to his son could be problematic if the son chooses not to pay the rental costs. This ultimately means an eviction will occur sooner rather than later. Another scenario would be a family restaurant, where the father is the owner and the son is a general manager. What happens when they both get into an argument, on a personal level? This is why I think business and family don't mix.

Share your thoughts and personal experiences below.

I think family business is not problematic but if we do woth our relatives might be we have to face your discussed issues.because a family in which father set up all the business and he prepares for his sons. And then his sons follow his instructions,many families in pakistan are successful in such way, most of businesses are doing tn such way in pakistan and they are top rated business mens. But the problem is arised when you include your outsider relatives.

 

[giddy]

Successful businesses are made based on the decision makers’ ability to put logic ahead of lofty dreams. Unfortunately, relationships are not based on logic; they are emotional, which is why the risk of things going bad is high.
When working with a friend or family member — or anyone else, for that matter — you should be able to be candid and critical with the people who are close to you. If you think you, your friend or family member can’t handle criticism, then getting involved in a business venture is not a good idea.

 

[Alexandoy]

This issue depends on the kind of family. I know some families who are cooperative and supportive. On the other hand I also know some siblings who are not in good terms with each other when it comes to money. When my brother started his importation business of special steel from Japan, he borrowed the title of our ancestral home - it was transferred to his name so he can use it as bond for the importation. He got his business going and it was earning good. After some years my 2 sisters wanted the title to be back to our parents' name. My brother spent a large sum for the transfer of the title. When my mother died, we had difficulty in selling the house because the signatory to the deed of sale are my father and mother. If that title was in my brother's name then it would be a breeze. That is my sad experience with my siblings.