Should You Go Into Your Family Business?

Summary

In a candid conversation, Scott seeks advice from Gary about maintaining his relationship with his father as they embark on a real estate venture together. They discuss the importance of complementary skills, with Scott bringing operational energy and his dad offering financial expertise. Gary highlights the critical balance between money and credit in family businesses, emphasizing the need for open communication to prevent conflict. Both acknowledge the complexities that arise when family ties and business intertwine, with Gary hinting at writing a book on family business dynamics to share insights from his experiences.

Takeaways

• 😀 Working with family can change your relationship dynamics permanently.
• 😀 Open communication is essential in family businesses to prevent conflicts.
• 😀 Acknowledge differences in perspectives on money and credit between family members.
• 😀 Balancing respect and financial interests is crucial to maintaining a healthy partnership.
• 😀 Identifying each person's strengths can lead to a successful collaboration.
• 😀 Recognizing and addressing vulnerabilities in your partnership can prevent resentment.
• 😀 Establishing a 'safe word' can help de-escalate conflicts during disagreements.
• 😀 It's important to discuss credit and recognition openly to avoid future misunderstandings.
• 😀 Family business dynamics often require understanding and flexibility from all parties involved.
• 😀 Learning from past experiences and observations can provide valuable insights for future success.

Q & A

What is the primary concern expressed by Scott regarding working with his dad in real estate?

Scott's main concern is that disagreements or arguments could ruin their relationship as they work together in real estate.

What skills do Scott and his dad bring to their business partnership?

Scott brings energy, hustle, and operational abilities, while his dad excels in numbers, marketing, and sales.

How does Scott describe his dad's background in relation to real estate?

Scott indicates that his dad is new to real estate, having a background in consumer electronics and distribution.

What are the two major points of contention in family businesses according to the speaker?

The two major points of contention are money and respect.

How does Scott perceive the distribution of values between money and credit in his relationship with his dad?

Scott believes he values credit more than money, estimating 25 to 40% on money and the rest on credit, while his dad values credit entirely.

What advice is given regarding the balance of money and credit in their business?

It's advised that both Scott and his dad need to understand their differing values regarding money and credit to avoid conflicts, suggesting open communication and possibly having a safe word to de-escalate disagreements.

What does the speaker indicate about the impact of entering a business together on family relationships?

The speaker notes that entering a business together will change the relationship permanently, stating it 'will never be the same' regardless of whether it's a positive or negative change.

What does Scott appreciate about working with his family despite the challenges?

Scott appreciates the collaboration with his family but acknowledges the difficulty in balancing the dynamics of money and credit.

What personal experience does the speaker draw from when discussing family business dynamics?

The speaker shares their own experience of working with their father and another individual, contrasting the dynamics of money and credit in both relationships.

What future plans does the speaker mention regarding writing about family businesses?

The speaker expresses a potential interest in writing a book on family businesses, drawing from their experiences and insights gathered over the years.