I remember when my older brother gave me a Volkswagen car he wanted to sell off at one million four hundred thousand naira. He asked me to rather pay N100,000 monthly for 10 months into the family's pocket allowance. What I am certain of is that I didn't pay up to N200,000, as he mentioned, and I took ownership of the car. In fact, I sold the car after three months, eventually for N700,000. This was my first-hand experience running a business with my family. The bond of love among us would not permit us to take drastic measures against those we cherish.
I have witnessed a couple of businesses that have run down as a result of not being able to take legal measures to hold responsible those people that caused the business to collapse. It is common news to hear that relatives abroad get duped of their investments back home in Nigeria. Oftentimes, they send money to relatives to help them run a business, build a house, etc., but eventually get the shock of their lives as they often come back to meet dilapidated structures or nothing at all.
During my period of medical internship, I engaged in the sale of groundnut cake, popularly known as "Kuli Kuli," for which my aunt has a special recipe she uses to prepare hers. My aunt is based in Bida town, which is about a 4-hour journey by road. When I have orders to meet or sales to offer, I make the orders, and once the product arrives, it barely spends 72 hours with me before it gets sold off. Here, I was a doctor selling groundnut cake. I wasn't selling it to make huge profits. I wanted the people around me to enjoy quality produce, and such was my basis for engaging in the business. I learned it the hard way. My co-workers and friends often bought on credit, and because of the work-life relationship I tried to nurture and protect, I realized the small business was beginning to count as a loss, which was separate from the stress I was undergoing. The business died barely six months after it started. Just a month ago, I saw one of my customers who used to enjoy the product, and she asked me if I was still in business, as she didn't mind. Regrettably, I disclosed that I had shut down the business.
Thankfully, I've not engaged in multiple businesses that involve loved ones, but that path is not one I would love to take. There is no relative that is spared from ruining one's business. Mismanagement can emanate even from a spouse and spread through children and other extended family members. It is worse with extended families as businesses are not often seen as theirs, and they could manage it as they deem fit, which may not necessarily be as desired or required.
One of the best pieces of advice I received from an old man who retired from the private sector was never to lend a family relative any money one cannot do without. The implication is that, when the matter escalates or gets blown up into a case that requires legal proceedings, it's often difficult to pursue loved ones to an end that would have been more comfortable with when it's with a stranger.
I would rather stay away from doing business with loved ones; trust is easily shattered.
Thank you for reading. I would love to have your comments and contributions.
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To be honest, when I first saw the heading I was about to argue but reading through convinced me to change my mind. Your last paragraph was what I resonated with the most. I think doing business with family is great and all but there is always space for that see finish which can lead people to back out or misbehave on the agreement made. They know that they cannot face strict consequences because they can always play the family card and of course, you would not want to be the one to tell your close ones off. That would make you the bad guy. It can be very tricky doing business with family actually but some family members too have proven to be good business partners. All in all, I think the advice the woman gave was very important and wise. Great post!
Thank you very much @babymoyin for your kind comment. You're right, some family members have proven to be invaluable assets but, when things go South, there's really nothing we can do to blood
Exactly. Nice write-up. Kindly follow back.
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Even some family members can suck one dry, in business there's need to be strict to some extent else the business will just collapse.
It has happened to me aswell, I end up closing the business.
You're right, relatives can ruin businesses
Businesses often go to end when loved ones are involved. I also have seen and observed so many business which went down only due to involvement of loved ones.
It's a path we should tread with caution and preferably, not at all. Thank you for your kind comment
This advice is a solid one. I extend it to everyone, is just go to offer what can afford to let go because of you want to consider legal charges, that will land one to another level of expenses. The last set of people to lend money and expect refund is family members.
You're right, money to family members is a 50/50, it may not come back completely or none at all
Having a joint business with family can turn out badly; not every family can work together. Like you said, you might not be able to take legal proceedings when the business fails, and it's also better if it were with strangers.
Regarding lending money to a family member, you have to keep in mind that they may not return it anytime soon, so you won’t be disappointed. You should only give out money you know you won’t need anytime soon.
You're correct. Family should be kept at arm's length when doing businesses