Should I go into business with my family?

It might seem sensible to go into business with a family member or spouse. Employment costs are not as likely to be as high and the negatives of the employer–employee relationship are not so prevalent. Successful family run and controlled businesses include the likes of: Dyson, Nike, JCB and Specsavers (source: Institute for family business).

If you do decide to take this step, make the agreement formal, ensure that employment contracts and shareholders agreements are in place so that there is clarity in all arrangements. These documents will not only help protect the business but also the relationship.

There are some key considerations when forming a family or ‘copreneurial’ (where couples co–manage) business:

• Emotion – is always involved
• Clarity – is required about what tasks are inside or outside of remit
• Perceived nepotism – if there are other employees
• Meritocracy – may be lacking
• Fresh ideas – may be harder to come by

See our other Big Questions here