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7 Points to Remember If You Startup With Your Family Members


Some Startups try to motivate their team by claiming that they treat their employees as family members, whereas other Startups actually work with family members as a part of their core team. Sometimes this may click well, but there are times when it won’t. It may be due to personal egos, jealousy or any other reason which may affect the Startup mission and vision altogether.

Hence we have come out with 7 basic points to note down before you ask any family member to plunge into your Startup :

  • Have Written contracts : It is obvious that due to love and affection, siblings, parents , spouses or any other relative may enter your business. But these affections may be temporary down the line , as it may happen that your vision may not match with theirs. It’s important to have a clear cut role defined for each member of the family so that in future any conflict can decide , who shall remain in business, who shall pay the price, how shall business move ahead in such circumstances and who shall be responsible for any losses or delays due to such probable conflicts.

  • Keep Relatives who aren’t employees away from your Startup: Regular employees shall feel uncomfortable and under scrutiny if your relatives attempt to take the advantage of your relationship over your Startup Employee. Hence keep your relatives at bay. Do not allow them to interfere in your business.

  • Avoid Direct Reporting to your Family Members : Note that it must be a policy of your startup to have an unbiased and impartial reporting requirement. Employees may not accept a policy where they are made to report to an employee who is a blood relative of the Founder / CEO.

  • No Special Treatments : See to it that the family members who are as a part of your Startup get equal / par treatment as other employees especially, when it comes to making remuneration payments or perquisites.

  • No Nepotism : Besides discussed above on special treatment, it is also to be taken into consideration that your Startup does not depict Nepotism, one example of which would be to place a less qualified relative into a job for which a loyal employee has been preparing for years.

  • Clarify the Prospects: Lying to the non-family employees about their promotions and opportunities which may be set aside for family members and giving them false hope would eventually prove costly for your Startup.

  • Its Business at the End of the Day : Your Sunday dinner may be one experience, but when it’s the next morning work desk, is totally different from your weekend thing. Bringing your personal life to your office along with you at your Startup or mixing it with your business talks isn’t advisable. Your Family member must be ready to accept the professional domain at your Startup work area.

Hence family loyalty, hugs and handshakes are fine for a family member in your startup. But that would in no case make them special or give them liberty to enjoy a luxurious journey at the business platform. Else note that your Startup employees morale would suffer and the peeved employee may leave your Startup sabotaging your Startup dream.

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