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Doing Business With Friends and Relatives

I've got business on the brain right now, since I've been working on a new project. My personal plan has always been to create businesses that provide excess money to invest with (real estate and more businesses) , so that's what I'm doing.

Just last night I was talking to a friend who had decided that he only wanted to do business now with friends, which I was surprised at. Maybe that is because after starting a business with my ex, our marriage and the business both suffered, so I am careful when it comes to mixing business, friends and family.

Rhonda Abrams (The Passionate Entrepreneur) column this week on Yahoo Finance is about this very thing... well, Hiring Family Members- but I think the same sort of thinking applies if this is something you are going to attempt:

1) Hire them because they are qualified for the job.

2) Set clear boundaries and be respectful.

3) Leave it at work.

Do any of you work with friends or family, or do business with friends or family members? If so, what are your thoughts?

Posted by E on May 15, 2007 6:09 PM |

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Comments (1)

I would be very wary I think, and if I did do business with friends or family for whatever reason I would make sure it was something small or short-term. I think if I worked with family we'd just fight, and if I worked with friends and it didn't work out I might lose the friendship, so it doesn't seem worth it to me. But I guess it depends on the personalities and the situation.

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