Are you ready to go into business with friends and family?
11/06/2015 | Author: Editorial Staff
The idea of working alongside a loved one may be appealing. But if you’re thinking of bringing in a friend to grow your business or becoming a relative’s sponsoring broker, make sure you start with a strong foundation and set some ground rules.
- Understand each other’s goals and values. Meet with your prospective business partner or agent ahead of time to set expectations and confirm you’re on the same page.
- Get arrangements in writing. Plan to draft agreements that establish governance of the business, such as a partnership agreement or articles of incorporation, that spell out how you’ll conduct your business and how someone can relinquish ownership. For agent-broker relationships, the Texas Association of REALTORS® has available the Independent Contractor Agreement for Sales Associate (TAR 2301) and the Statement of Understanding (TAR 2302).
- Clarify who’s in charge. If you’ll be sharing ownership of your business, you should also define in writing who is empowered to make decisions to ensure business progresses.
- Communicate your concerns early. Relationships can be strained when finances are involved, so discuss topics like how you’ll spend and save money and who’s responsible for which tasks at the outset.
- Discuss issues in a formal setting. Treat your colleagues like professionals, even if they are your family members or friends, by implementing a regular meeting schedule with agendas.
- Seek an objective opinion. Enlist the counsel of a trusted adviser who is not involved in the business and can offer independent advice when needed to avoid family friction. And it’s always a good idea to talk to your attorney when making any kind of business arrangement.
Are you in business with your friends or relatives? Comment below to share your experience.
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