
One advantage of running a small business with family or friends is that the principals know and are committed to one another and the success of their enterprise. But intimate partnerships also have potential relationship-based perils, some of which could cause work-force demoralization, legal problems and even failure.
The trick to making a small venture succeed is to acknowledge these risks from the start and institute processes to contain or minimize them.
Conflicts are inevitable, so prepare for them: Disputes arise in all businesses, but they’re harder to conceal in a small operation that doesn’t have a formal complaints-resolution process or human resources personnel...