How to Run Your Business Effectively with Family or Friends
Nov 4 2020 0

How to Run Your Business Effectively with Family or Friends

The dynamic between family members and business partners or employees is quite different. But when family members or friends are also colleagues, those lines can get blurred a bit and if there aren’t clear guidelines established before working together any type of dispute can devolve into major problems for personal relationships and the business itself. This doesn’t mean that you shouldn’t work with family or friends, it is just to say that if you decide to do so, taking preemptive actions is well worth your time and energy to preserve the integrity of your business.

When you need legal counsel regarding the best way to set your business up and run your business, the experienced and talented California business attorneys at the Leiva Law Firm can help. The boutique Los Angeles business law firm at Leiva Law has the experience you need and want to protect you and your business. Leiva Law has more than 25 years of helping business leaders in the community handle their legal affairs.

What Should You Do Before You Work With Friends and Family?

How to Run Your Business Effectively with Family or FriendsWhether you are a small business or a larger company, it is not an uncommon practice to trust family and friends more with your company than others that you don’t know. For this reason, hiring close friends and family seems like the natural next step to staff your venture. However, there are several instances where good intentions are at the beginning of a working relationship but turn sour as issues arise. The poor turn of events in a relationship can be very detrimental to a business owner’s reputation and the functioning of their operation. 

There are protective steps business owners can take to ward these pitfalls off in the event a dispute arises including:

  1. One of the most common actions business owners do is to develop strong and binding contracts for protection. While you may feel awkward having your friend or family member sign a contract, or think that it is unnecessary to have such a trusted individual sign anything, you are doing yourself no favors by not putting the right agreements in place. These documents will better help you do many things including clearly define the duties of the job and explain confidentiality.
  2. Clearly defined procedures, standards of operation, the hierarchy of roles, and scope of responsibilities will help you as a business owner set the boundaries that you expect to be followed. This way there is no misunderstanding or miscommunications regarding how every employee, including your close friend or relative, is to operate in their role in your company.
  3. Should you have to deal with a conflict and the working relationship with your friend or family member must come to an end, having a defined plan as to how you will resolve the dispute can make the transition go much smoother.

Speak with a California Business Attorney Today

There are several benefits to working with a Canoga Park business attorney, including developing procedures that clearly establish the expectations which exist for your business’s hierarchy and any employees. Call Leiva Law and schedule your free consultation at 818-519-4465.  to discuss your specific and unique business needs.


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