The Problems Of Mixing Family and Business

Any smart entrepreneur would second the statement Mr. Subroto Bagchi ( COO of MindTree Consulting) made “Blood is a poor substitute for competence”. There are times when an entrepreneur is tempted to involve family into the intricacies of the business and worse, get them to be part of the business.

The presence of family removes a clear reporting structure. Wrong decisions can be made with emotions being in play. Let’s just say you are the CEO and your wife heads the HR. Can you see the devastating effect it could have? Your people would never have the confidence to speak up about the flaws that a management has. Flaws if corrected, would transform the value that your organization imparts.
Family and business don’t really mix well. The presence of family usually results unnecessary politics within your organization. The value chain is ruined. It would not be long with vultures flying in destroying what’s left of your business.

As with everything in life, there are exceptions. With increased people maturity, It sometimes make sense to have a smart and more importantly a trust worthy family member handle certain functions of the business. Let’s say for example finances could be one.

Summarizing it in a nutshell, it’s prudent not to involve business and blood. But if your judgment with perfect logical backing says otherwise go on and make the best of it.

Feel welcome to post your thoughts, views and questions in the comments.

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Copyright © Dennis D Maliekal