Dealing with Relatives in Business

Recently, I approached a relative for legal services. To cut a long story short, I was quickly reminded to temper any sense of entitlement. Yet, ironically, the customer care I received fell short of what I would have expected from a stranger. In the end, it felt like we were both taking each other for granted.

I'm sure many of us have been there before—either as an employee in a company where the boss has relatives on the payroll or as someone trying to navigate the murky waters of mixing family with business. The dynamics can be tricky, and the stakes are high. When boundaries blur, expectations can become unrealistic, and professional standards might slip, leading to misunderstandings, resentment, or even failure.

Here are some common traits often observed when relatives are involved in business and how to manage them effectively:

1. Entitlement and Expectation Gaps

Relatives might expect special treatment, be it in terms of leniency, compensation, or responsibility. On the other hand, the business owner might expect unwavering loyalty, flexibility, or even a discount on services, simply because of the family connection. These mismatched expectations can lead to disappointment on both sides.

How to Handle: Set clear boundaries from the start. Establish professional standards and ensure they are applied equally to everyone, relative or not. Formalize agreements and job descriptions to minimize misunderstandings. Regularly check in to ensure both parties are aligned in their expectations.

2. Lack of Professionalism

The familiarity between relatives can sometimes lead to a more casual approach, where the usual professional courtesies and protocols are overlooked. This can result in poor customer service, missed deadlines, or a general lack of accountability.

How to Handle: Treat the relationship as a business partnership first and a family relationship second. Encourage professionalism by setting an example and holding everyone to the same standards. Don’t hesitate to give constructive feedback if needed, just as you would with any other employee or business partner.

3. Communication Challenges

Communication between relatives in a business setting can become overly informal or, conversely, too sensitive, with both parties walking on eggshells to avoid conflict. This can lead to important issues being overlooked or unresolved.

How to Handle: Maintain open and honest communication. Schedule regular meetings to discuss business matters, ensuring these discussions remain focused and productive. Keep personal matters out of business discussions to avoid muddying the waters.

4. Potential for Resentment

If things don’t go as planned, or if one party feels they’ve been taken advantage of, resentment can build. This can strain both the business and the personal relationship, sometimes irreparably.

How to Handle: Address issues as soon as they arise. Don’t let small grievances fester. If necessary, bring in a neutral third party to mediate and help resolve conflicts. Always prioritize the health of both the business and the relationship, even if it means making difficult decisions.

5. Favoritism and Perception of Bias

Other employees may perceive favoritism if they believe relatives are receiving special treatment. This can damage team morale and create a toxic work environment.

How to Handle: Be transparent in your dealings with relatives in the business. Ensure that all employees are treated fairly and that decisions are based on merit, not family ties. Clearly communicate the reasons behind decisions to avoid misunderstandings.

Conclusion

Mixing family and business is never easy, but with clear boundaries, open communication, and a commitment to professionalism, it can be managed successfully. The key is to remember that while family ties are important, the success of the business depends on treating everyone—relative or not—with the same level of respect and professionalism. By doing so, you can protect both your business and your relationships, ensuring that neither is taken for granted.

About the author

Dr. Jjuuko Derrick, is a pharmacist with a keen business acumen. Having dedicated much of his career to engaging with business owners and employees, he brings a unique blend of pharmaceutical expertise and business insight to the table. As an entrepreneur himself, he is passionately committed to leveraging his technical skills and entrepreneurial experience to foster the growth and development of multiple businesses. Driven by a mission to make a meaningful contribution to the business landscape, he stands ready to empower entrepreneurs with the knowledge and tools they need to thrive.