Keeping It in the Family
The good, the bad, and the ugly about going into business with your family (Plus, tips for success!)
Few entrepreneurs start a company with an end date in mind. Instead, it’s usually quite the opposite—the dream is to create a business that carries on your legacy, an organization that outlives you and brings success to future generations.
This is true especially for childcare agency owners whose businesses are locally owned and operated. Of course, it makes sense to hire your cousin who’s a nanny, let your teenage daughter run your social media, and have your bookkeeper spouse send your invoices. However, it might not make as much sense as you think in the long run.
The perks of working with your family can come at a price. In our previous blog, we showed you the big-picture dangers of Mixing Business with Pleasure. This week, we’re zooming in to discuss common issues (and their solutions) for working with family.
THE GOOD.
Trust and Loyalty: One of the most significant advantages of doing business with family is that you know each other well. It’s reassuring to know that you can trust them and are also invested in your company’s success.
Values and Vision: Additionally, families often share similar principles which are crucial in shaping company culture and creating a cohesive strategy for growth. Plus, celebrating successes together strengthens family bonds, ramping up motivation to keep striving for excellence.
Flexibility and Support: Family members are typically more willing to help during busy or difficult times. Whether that means covering for each other during emergencies or making personal sacrifices for the business, this level of support can be invaluable.
THE BAD.
Blurred Personal and Professional Lines: Disagreements at work can spill over into family life and vice versa. This can make it difficult to compartmentalize the two relationships for a healthy work-life balance.
Tip: Set firm boundaries for discussions and ensure family gatherings remain free of business conversations.
Nepotism: Accusations of nepotism or favoritism are common when working with family. This can cause resentment among your other employees, which may erode company morale and harm the business.
Tip: Bring in external advisors (like a business coach) to provide objective support and offer valuable insights for navigating complex issues.
Succession Planning: Deciding who will take over the business and how the transition will occur can lead to tension and disappointment. Encourage all family members to transparently share their feelings and concerns. Also, be sure to listen to everyone’s perspective.
Tip: Start succession planning early, provide potential successors with the necessary training, and keep plans clear to prevent misunderstandings.
THE UGLY.
Conflict and Negative Feedback: It’s not easy to tell anyone their performance needs improvement, but it’s especially challenging to say that to a family member. Workplace disagreements are inevitable, but when family is involved, they can be more emotionally charged and difficult to resolve.
Tip: Effective communication and conflict resolution strategies are essential to prevent personal feelings from interfering with professional decisions.
Too Many Cooks in the Kitchen: Sometimes family members feel an over-inflated sense of entitlement because of their connection and use it to step on toes. However, other staff members don’t care “who you know” and, in fact, might be less tolerant about taking unsolicited directions.
Tip: Create formal, clearly defined roles and responsibilities to avoid overlap and confusion, ensuring everyone knows what is expected of them.
Sloppy Documentation: You would never hire a nanny or partner with a client without a contract; however, when it comes to family, we’ll often skip getting agreements in writing because “they’re family.” This can lead to murky details and even legal nightmares.
Tip: Draw up a charter that outlines your values, vision, and that states operational guidelines to serve as a master reference point for resolving disputes.
Going into business with your family can be both personally and professionally rewarding. However, it’s not without challenges.
Clear communication, defined roles, and a shared vision can help to prevent many of the challenges that can appear when working with loved ones. This way, your nanny agency can be where you leave your legacy via a family business you’re proud to pass down through generations!
Are you interested in forming connections in the industry that become like family? SAVE THE DATE! Our amazing retreat this September in Lake Norman, North Carolina will be our final retreat until 2026!
We’re going out with a bang! And you won’t believe how much you’ll learn or how rejuvenated you’ll feel.
“MMC retreats are absolutely wonderful! This retreat is an opportunity to learn and meet like-minded agency owners. Some of my closest friends are women who I met at a retreat. If you are able to attend an MMC retreat, I highly encourage you to do so!” – Amanda W, Owner, The Nanny Avenue
