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A Family IT/Tech Business??
adzoox writes "As I have just hired on my girlfriend to help out with some secretarial work in my Apple consulting, sales, and technical service business, and considering having my brother work with me soon; I'd like to know what the /. readers think about family in the 'Tech Workplace.' Obviously things aren't hectic like a restaurant, but my father and friends have all warned me against mixing business and pleasure and family. Do any of you have successful family owned IT businesses, eBay businesses, or programming/software consulting engineering businesses and what's been or secret to success? If not successful what unique problems did you encounter? How can I make it successful? And most importantly how do you handle authority (tardiness, work ethic, and workplace codes) with a girlfriend?"
1. Your family may get along exceptionally well but keep in mind that any other employees may view the relationship skeptically and even resent you when you take a long lunch with your brother or promote a family member.
2. Make sure you have a well written agreement between any family members. If there's a falling out, it hurts much more when there's no clear solution to the business interests.
3. What happens if your girlfriend, God forbid, breaks up with you? Can you handle seeing her at work, knowing she's not your girlfriend anymore? The reverse is also true, she could resent you. Have a reasonable employment agreement for this. Be generous up front and you'll save legal fees down the road.
I've found that when the money's flowing and times are good that even big problems aren't much of a challenge. It's when things get tight that even the best friendship can be tested. A family member isn't usually someone you can say goodbye to and never see again.
Good luck,
M
Basically, you just need to keep clear documentation indicating who owns the business and who works for it.
;-)
Additionally, you may want to file for LLC status, so if you and your girlfriend part ways on less than friendly terms, she can't take the business away from you.
If you just barely manage to stay afloat, this doesn't really matter. But if you start making good money (and to support three people, you presumeably can't do all that bad), CYA.
Of course, this only covers the business aspects of the arrangement. If things do go sour, you may end up estranged from family and your GF leaving for completely financial reasons. But you can't really do much to avoid that, short of listening to your father (Gack! Did I just say that? Damn, getting old, I guess...)
PS, IANAL, which for any discussion like this, we could all save time by just sticking that in our sigs.
It probably varies by state, but community property only applies to the increase in value. If the company is woth $100K when you marry, and $120K when you divorce, community property only splits the $20K increase.
My own divorce showed up this and one other oddity. She provided the down payment on the house, I provided the monthly payments, yet her down payment counted as a gift to community property because it was BEFORE the marriage, and would have counted as her own money if we had bought the house AFTER marriage. Two lawyers told me the same thing.
Community property is not at all intuitive.
Infuriate left and right
Make sure that any family members included in contracts are specifically aware that tthis is a business relationship, and include that in the contract. In Australia, you can run into all sorts of problems with family members and contracts unless you specifically ensure that it is a business realtionship. In some circumstances contracts can be voided between family members because it is implied that family members don't consider the contract as a business relationship rather thaan a family one.
My father and I once owned a successful local ISP - We resently sold the business, though due to the offer - not by problems caused due to our working together.
We had one problem with my sister working for us.
We later determined the reason.
It was not caused by her work duties, moreso due to the lack of specifying her duties.
When my father and I started the company we knew exactly (to the letter) what each of our responsibilities were. He handled receivables, billing, banking, and purchasing in regards to available monies, overhead etc.
I handled all administrative duties, patching, programming, upgrades, analysis, determining expansion requirements for growth and current loads, etc.
We evenly divide client support. and jointly decided on possible advertising ventures to increase client base - though the final word in this was his. My final word came in the form of implementation, how to, the means to achieve it on a broad ratio.
Advanced or trouble tech support issues fell toward me to finish them up and bring them to a close.
When my sister came aboard with a wide range of experience, we simple dropped her in the middle of it, had a single current chore that she needed to accomplish, though after that we constantly felt she wasn't doing her part. We later determined that the flaw was that her duties and responsibilities were not defined, nor were deadlines sets.
As long as you specifically indicate what each person has on their 'virtual' plate, what their deadlines are - and what vocal power they have in choices made (whether none or only in certain areas of the business), then I do not see an issue.
Tardiness is something that you should be able to determine ahead of time. Do the family members current work? Have they been previous let go because of missing work? If they been at their job for year, then most likely you won't have a problem. Though in order to curb this, set a mandatory morning meeting every work day. Specify that the meetings are mandatory and missing or being late for more then two a month will mean immediate termination.
Another possiblity, if you perform a lot of on-site work, schedule these service times at the beginning of the day. The customer will let you know if the person is late or didn't show up. Then if you need to terminate you can say because the client requested that they have someone different service their needs. This takes some of the wieght off of you and puts it directly on the shoulders of the offender.
Require you girlfriend to do banking first thing in the morning. Banking statements will have time stamps on them and you'll know if she there on time. Let her know that it is mandatory that the banking be done first thing to ensure all cash and deposits are avaiable as soon as possible.
Working with family provides an immesnse amount of closeness and fun time. I've share numerous times with my father that lead to hours of laughter. Good Luck!
Never try to beat a professional at his own game!
This doesn't really make much difference. If your business is incorporated, but you are the only shareholder, then the business is still yours and could be split in the event of divorce. If you only owned 25% of a business and got a divorce, then your wife could conceivably get 12.5% of it. A corporation can always help smooth out legal issues involving a business, but it cannot make your business immune from the usual estate laws.