He owns the firm. He started it 20 years ago. He’s a good lawyer with a thriving business.
She’s his wife. She’s also a “bookkeeper.” At least, she says she’s a “bookkeeper.”
Unfortunately, the books are a disaster. I won’t waste your time citing specific examples, but basically, she doesn’t understand bookkeeping. It’s a big, fat mess.
The solution is simple.
He needs to fire his wife.
Um, maybe the solution isn’t so simple.
The Easy Answer to Nepotism
At some point, you’ll face the prospect of going into business with or hiring a relative.
Don’t do it.
I know, I know, everyone knows people with a story about how things worked out so well when they worked with their spouse, father-in-law, mother, or whatever.
For all I know, you’re sitting across the hall from your law partner/spouse right now.
If you’ve already done it, then enjoy it because it’s what you’ve got. I’m not suggesting you change it. I’m only speaking to those facing the decision of starting the business relationship with a relative.
Business is hard. Family relationships are harder. Mixing the two is hard squared.
If you’re looking to grow a business, then you don’t need any additional problems. If your goal is something different, like a lifestyle business where you get to hang out with relatives, then go ahead and bring in the brothers, sisters, cousins, parents, and anyone else you like.
It’s your business, and it’s up to you to do what feels right.
But if your business is about delivering amazing service while increasing the top and bottom lines, then why make it harder?
How Relatives Complicate Your Business
I hired my brother. He’s amazing. He’s five years younger, an MIT graduate, and a former business owner. He has been successful at everything he has ever done (with the exception of the rock band right after college).
How did it go? Great. He produced terrific results.
Was bringing him in a good decision? Probably not.
It was weird for him, weird for me, and especially weird for our team. It lasted for several years before we called it off and he went on to much bigger and much better things.
Nepotism creates all sorts of odd dynamics and complications.
- The business relationship and the personal relationship make decisions awkward.
- Conversations get hard.
- No one knows exactly where he or she stands.
- It also freaks out your other employees. Is there favoritism? Are you doing what you’re doing because it’s the right thing or because the person is related to you? Every decision gets questioned—twice.
There are six billion people out there. Is there no one who can do the job better than your relative?
Time after time, I’ve been asked to help with small firm business issues. Very often, the family relationships within the business are a big part of the problem. When you’re faced with the decision, just say no. It might not be easy to walk away in the moment, but it’s much easier at the outset than it is later when things have grown more complicated.
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