Many lifelong friendships begin in the workplace.<\/p>\n\n\n\n
But can it work the other way around? Can aspiring\nentrepreneurs rely on their nearest and dearest to help them do what it takes\nto succeed?<\/p>\n\n\n\n
Apparently 80% of startup founders recruit family and\nfriends. While the idea of doing this might sound great in principle, what\nexactly does it take to make this kind of arrangement a workable reality?<\/p>\n\n\n\n
What are the major pros and cons of hiring a loved one? Some\nmajor considerations are needed, relating to:<\/p>\n\n\n\n
Let\u2019s take a closer look.<\/p>\n\n\n\n
Trust<\/strong><\/p>\n\n\n\n For many entrepreneurs, a startup business is their baby.\nThis makes it incredibly difficult to hand over responsibility to anyone. Trust\nis a crucial factor, which is why it makes perfect sense to give those you\nalready trust implicitly a central role in your business efforts.<\/p>\n\n\n\n After all, if things work out, you\u2019ll be able to celebrate\nyour mutual success and progress to bigger and better things with them at your\nside.<\/p>\n\n\n\n However, trust is a two-way street. And while you can trust\nsomeone to be honest and open with you, you might not always like what they\nhave to say.<\/p>\n\n\n\n You also need to be able to trust someone\u2019s ability to do\nthe job you\u2019ve created for them. Sometimes our capacity to trust can cloud our\njudgement. For example, your partner might be great at handling your family\nfinances, but that doesn\u2019t necessarily make them the best fit for that critical\nCFO role you want to fill.<\/p>\n\n\n\n If you do choose to hire someone you trust, it\u2019s vital to\nmake sure that the skills they offer match your business\u2019 needs.<\/p>\n\n\n\n Affordability<\/strong><\/p>\n\n\n\n Some of the world\u2019s most successful company founders started\ntheir businesses by borrowing money from family and friends (Jeff Bezos\u2019\nparents\u2019Amazon shares are rumoured to be now worth billions). But employing\nthem? That\u2019s quite another matter.<\/p>\n\n\n\n As a company founder, you\u2019ll be watching every penny you\nhave. By hiring a close friend or family member, the obvious benefit is the\nfact you\u2019ll instantly save money on advertising and recruitment fees.<\/p>\n\n\n\n You also might be able to pay them less. Or (if that doesn\u2019t\nsway them) even offer them equity in exchange for their efforts.<\/p>\n\n\n\n When Facebook founder Mark Zuckerberg needed someone to help\nhim communicate his vision, he turned to his marketing expert sister, Randi.\nShe willingly took a pay cut to help outher younger brother. It seems that\nmoved paid off for all concerned.<\/p>\n\n\n\n Possible downsides, however, could be that other staff could\nstart to ask questions about your friend or family member\u2019s pay or stake in the\nbusiness. Anything that smells of nepotism can cause resentment.<\/p>\n\n\n\n Equally, if there\u2019s a big pay gap between staff and your\nfamily member\/friend \u2013 and this isn\u2019t evident from the outset \u2013 there could be\nsome degree of animosity. This could then spill over into other aspects of your\nlife.<\/p>\n\n\n\n Commitment<\/strong><\/p>\n\n\n\n To get your business off the ground, you\u2019ll want to surround\nyourself with dependable, hardworking people\u2013 the kind that\u2019ll go above and\nbeyond the call of duty. What you need is someone as committed to your vision\nas you are. Someone engaged and able to deliver.<\/p>\n\n\n\n After all, the more engaged employees are, the more\nproductive they\u2019ll be. They\u2019re also more likely to put in extra hours and help\nwith additional work \u2013 off the clock.<\/p>\n\n\n\n However, there\u2019s a difference between asking someone to take\non occasional extra hours and relying on them to stay late at the office\nseveral evenings a week \u2013 even if they are related to you.<\/p>\n\n\n\n It\u2019s crucial to respect that they may have other commitments\noutside of work and to give them the time and space they need to fulfil those \u2013\njust as you would with any other employee.<\/p>\n\n\n\n Of course, having a friend or relative working for you might\nmean you feel comfortable asking more favours of them \u2013 but there\u2019s always a\nlimit to someone\u2019s generosity \u2013 especially when it comes to their own precious\ntime: no matter how close you are.<\/p>\n\n\n\n Communication<\/strong><\/p>\n\n\n\n One of the main reasons for employing friends or relatives\nis that they \u2018get\u2019 you. Great communication has already been established \u2013\nwhich in business accounts for a great deal: trust, output, and morale.<\/p>\n\n\n\n However, some of the other aspects of business can be a\nstumbling block: hierarchy for instance. This can be a problem when working\nwith those you know well as it instantly puts a communication barrier in place:\nbetween \u2018you\u2019 as the boss and \u2018them\u2019 the employee.<\/p>\n\n\n\n But for many people this is less of an issue, particularly\nin startup environments which by their very nature tend to be less formal, and\nmuch smaller in size than established businesses.<\/p>\n\n\n\n That said, by giving everyone in your business an\nopportunity to regularly voice concerns, and by establishing clear lines of\ncommunication between management and employees, barriers are more easily\neroded.<\/p>\n\n\n\n This means a more egalitarian mood prevails \u2013 based on\nmutual respect for each other\u2019s status and abilities.<\/p>\n\n\n\n Some final thoughts<\/strong><\/p>\n\n\n\n Ultimately, running a startup usually requires a set of\nspecialist skills \u2013 often technology- or business-orientated.<\/p>\n\n\n\n If your friends and relatives are experienced in certain\nareas and are willing to share the benefit of their expertise with you on the\nodd occasion, then that\u2019s great. But entering into an employer-employee\nrelationship is a different matter entirely and requires considerably more\nthought.<\/p>\n\n\n\n Here are a few final things to consider before employing\na close friend or relative:<\/strong><\/p>\n\n\n\n Do<\/strong><\/p>\n\n\n\n Don\u2019t<\/strong><\/p>\n\n\n\n Many lifelong friendships begin in the workplace. But can it work the other way around? Can aspiring entrepreneurs rely on their nearest and dearest to help them do what it takes to succeed? Apparently 80% of startup founders recruit family and friends. While the idea of doing this might sound great in principle, what exactly does it take to make this kind of arrangement a workable reality? What are the major pros and cons of hiring a loved one? Some major considerations are needed, relating to: Trust Affordability Commitment Communication Let\u2019s take a closer look. Trust For many entrepreneurs, a […]<\/p>\n