Mixing Business With Family

Running your own business can be both exciting and liberating. Typically, it’s an industry or interest you love, you’re your own boss, and that “daily grind” is a thing of the past. But there are definitely some issues that can come up—some you might not have even anticipated when diving in headfirst. 

Two common concerns we see relate back to family—when, how and IF you should involve them in your business.

Are you relying too much on your spouse’s income?

Putting other money into your business account that’s not profit from the business is a pretty good sign you’re not making money. 

At this point, you and your partner need to create two things: 1. a household budget, and 2. a profit and loss statement on the business. Put all your business expenses (in detail!) on the profit and loss statement, then write out what it’d take to break even each month. If you can’t break even? It might be time to do something else.

The only money that should go into the business account is income the business creates. Your own household and its immediate financial responsibilities come first!

Are you hiring family members into business with you?

As an entrepreneur, you have the right and responsibility to do what’s best for your company. That means only hiring people who’d be a good fit. 

If your relative is qualified and understands the meaning of bringing it every single day, then by all means hire them. But if they’ll expect special treatment or if they’re not reliable, it could be a nightmare for everyone (you, your company, the whole family).

Ask yourself one question: Would you hire this person if they weren’t part of the family? If no, that’s your answer.

Have more questions? Let’s chat! Contact us now to get your no-commitment session in the books.

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