Family matters in business success
DOES the family that pay together, stay together?
Given that trust, mutual understanding and shared values are fundamental aspects of any business partnership, your nearest and dearest would seem the logical people to launch a business venture with.
There is, however, more to business success than love and rapport.
In any business, product and service are the basis of success but businesses involving family and friends have some unique considerations.
Separating work and home life is not as easy as logging off or downing tools. Out of hours, it's important to know when to switch off.
Look for business partners with complementary skill sets that will cover the wide range of tasks required in a business team.
Establish distinct and well defined roles from the very beginning.
Set boundaries and communicate with each other about every aspect of the business, even the uncomfortable parts like money.
As with any relationship, communication is key.
Regardless of the mutual respect, it is essential normal business practices are followed.
Formalise the financial and operational structure of your business.
Seek legal advice so you detail how much of the business each person owns and what happens if someone wants to leave the business or dies or, if there are problems, how you will resolve them.
Despite the saying, business and pleasure can mix but only if everyone involved shares the same passion and commitment.
The SBDC provides a range of services to the small business sector, from business workshops to advisory services and much more.
Visit smallbusiness.wa. gov.au or all one of our experienced team on 13 12 49.