chriscahn

August 17, 2007

Posted by chriscahn

Are there any benefits of nepotism in a business setting?

I have researched a number of companies where family members or friends of the family have significant leadership positions. In every case, I have seen there is nothing good about nepotism unless you are a family member. :)

I would also be interested in hearing your stories regarding nepotism.

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pollyp

August 17, 2007

Posted by pollyp

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I think it all depends on the family dynamics that exist outside of the business setting. You have to think about the following questions:

- How will I handle conflict with family members?
- Am I comfortable giving/receiving orders from my family members?
- What will happen if I need to hire a non-family member?
- What will happen if I need to fire a family member?
- Will I be able to maintain a family life outside of the business?

This isn't a comprehensive list, by any means, but I think it indicates that there are many issues that must be addressed as you consider hiring/entering a family business.

On a different issue, I think the image/reputation of the small, down-to-earth, mom-and-pop family business is still good in our society. People often automatically feel more comfortable and less fear that they will be taken advantage of if they're doing business with a family team.

In the end, you simply must weigh the benefits against the costs. Whatever happens to the business, keep in mind, you can't hold a "going out of business sale" for your family...

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