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CAPITAL QUESTION:

What should you know before entering into business with family?Capital Ideas members offer insights to consider before making the leap

Ashley Janssen, principal at AgileStyle (agilestyle.com), says there are many factors to consider before working with loved ones. “It’s easy to bring in your existing relationship dynamic and past emotions, which can cloud your judgment and impact how you treat each other. Ask yourself: Is this someone I am willing to challenge? Can I respect them as an equal? How have we handled conflict in the past? Do we share the same values? What is the worst outcome if things don’t work out? Honest answers can prevent future problems.”

“Family comes first; the family business comes second, or even further down the line. Do not expect everyone in your family to be interested in working in your business. Grumpy kids missing out on a special event with their friends while being stuck serving customers can [prevent] that customer from returning.”— Leslie Boyer, founder of Site BIM Ltd. — sitebim.ca

“Make sure everyone knows their role and what they will be accountable for. I would also spend some time talking about the vision for the business. It can be very difficult when one person’s vision is worldwide domination, while the other’s is only a hobby business.”— Laurie McNaughton, owner of ActionCOACH — actioncoach.com/lauriemcnaughton

“Two important things: First, what is the family’s vision for the business, and can you achieve your personal goals and dreams within that vision; and secondly, what does the business require in terms of skills, and do your skills allow you to make a meaningful contribution to the business while giving you the challenge and growth necessary for a successful career.”— Don Zinyk, owner of D. A. Zinyk Consultant to Business Families

“Family provides us support as no others can, and the rewards can be immense. However, the risks or pitfalls are numerous ... It is fundamentally important to define and understand the difference in structural characteristics between family and business to avoid [failure]. Family inclusion is not a choice; business is.”— Darryl Moore, vice-president of marketing and communication at Executrade — executrade.com

“Have a written agreement, address succession, buyout clause, insurance provisions for illness, injury or death, as well as the specifics on all types of compensation. Agree on business goals, visions and budgets, and make a plan to prevent misunderstandings with family. Recognize what each member brings to the business… and degrees of commitment.”— Elaine Parker, CEO of Analyisis360 — analysis360.ca

“It’s not only about the numbers; it’s about process as well. It’s important that matters are dealt with in a fair and equitable manner. For example, if you are planning to buy into a family business or sell to a family member, it’s important that the process is transparent and independent of family dynamics. Getting independent advice is a way to alleviate some of the issues that come with dealing with family.”— Hussein Poonjani, managing director at Grant Thornton Corporate Finance Inc. — grantthornton.ca

“You need to know their personal goals for their lifestyle and finances. Being related doesn’t mean that your goals and practices are in alignment, and incompatible visions for personal lifestyle, or clashing financial values, can lead to major trouble in communication and operational management down the road. Honesty and transparency in these areas is paramount.”— Lauren Sergy, owner of Up Front Communication — laurensergy.com

“Just because it is family doesn’t mean it isn’t a business deal … so get the agreement in writing. Unforeseen things do happen … so clarify your duties, work hours, vacation time, salary, bonuses, dividends, etc.”— Lorn Stanners, chief informing officer at Financially Speaking — financiallyspeaking.ca

“With any business [partner], family or otherwise, the rules and regulations have to be spelled out from the beginning: Who will be the boss and what roles you will each play. Your values, goals and vision have to be the same. Good paper is good business — put it in writing!”— Dorothy Briggs, owner and publisher of Womanition Magazine — womanition.com

“Can you divide work life from your personal life? If you can’t, don’t enter into business with family. You need to be able to turn off the work switch, or family will become work and work will become family. Is your business a ‘we’ business? A family business needs to be run with the best interests of the family in mind. If you are self-serving, your family will see that sooner than others will. A ‘we’ business serves the interests of others before the interests of the self.”— Daniel Dromarsky, capital partner at Enviro-Plus Business Services Corp. — enviro-plus.ca

“Any business venture can be stressful, and adding family to the mix can make it an easier journey. Your family knows your strengths and weaknesses and can help you play to your strengths. Having family around can make the journey less stressful. I have leaned on many family members as I grow my business.”— Kelsey Ford, owner of Lendrum Eyecare — lendrumeyecare.com

“Know that the relationships you have with the family members you will be working with will be tried and tested when dealing with the many obstacles small businesses face on a daily basis. On top of the usual small-business chaos, your relationships will face the added stresses that accompany separating personal and professional roles. Working in a family business can be an incredibly rewarding experience, but before doing anything, take some time to evaluate the entirety of the situation and how it could affect your family.”— Anuj Gupta, president of Anu Homes — anuhomes.ca

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“The core to any successful partnership is believing equally that you have the same commitment and that you make the same contribution to the company … Ideally you have a partner with a different skill set than you in certain areas so you can cover different parts of the company.”— Justine Barber, co-founder of Poppy Barley (poppybarley.com)

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These answers are in re-sponse to a question posed by Wellington Holbrook, executive vice-president of ATB Business. Here’s his take:

“Being in business with family can be great; you know your partners, you can trust them and you believe that they will be there when things get tough. On the other hand, there are some challen-ges, like having the tough conversations with a family member at work and then trying to leave it there when attending a family event or dinner. Truth is that money and business have broken up lots of families, but it has brought them together too — I personally grew up in a family business with my mom, aunts, cousins and many people being involved, and it was great! The best thing you can do is look into the eyes of your prospect-ive business partner, who happens to be a family mem-ber, and answer the following question: Will we still be family if a disagreement — perhaps one involving lots of money — comes between us? If the answer is yes, then drive on!”

Chasing leads and follow-ing up with potential clients is crucial, but how do you know when to cool your jets? This week Joanne Blake, owner of Style For Success (styleforsuccess.com), is asking you to weigh in.

How can you be persistent without nagging?

You can answer the question in two ways:• Open today’s Capital Ideas email if you’re a mem-

ber, or• Visit capitalideasedmonton.comWe’ll publish the best answers, along with your busi-

ness name and website address, on Sept. 26. Have a burning business question of your own? Submit it to capitalideasedmonton.com/ask.

COMMUNITY QUESTION: How can you be persistent without nagging?