The idea of starting a business
The idea of starting a business with your husband, wife, brother, or parents seems ideal: you trust each other, are on the same page, and can save money at the start. But as soon as it comes to real money, dividing responsibilities, and the first cash flow gaps, this family idyll often turns into a battlefield. In a business with loved ones, it's incredibly difficult to establish firm personal boundaries and chains of command. Personal grievances begin to influence work decisions, and work problems spill over into the home, poisoning relationships. If you're determined to build a business with your relatives, agree on all the terms upfront. Define your shares, spell out areas of responsibility, and, most importantly, immediately determine how you'll share profits and losses if something goes wrong.
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