Starting a successful business with family may rely on a paper foundation

MYRTLE BEACH, SC (WBTW) – Troy Hazard – a self-described serial entrepreneur and founder/owner of 12 businesses in the last 25 years – joined News13 NOW at 9 a.m. on Wednesday. Hazard is also the author of the book Future-Proofing Your Business. He shared some tips for starting a business with a family member or close friend.

The interview focused on starting with a strong foundation that begins with the right paperwork. Watch the video for more details. His short list of what to do and not do follows:

DO the paperwork

With family members it’s easy to go with a verbal agreement to start the business – especially if it’s your spouse. But it’s important to create a partnership agreement and document ownership percentages, rules for buyout and how the business would continue should one family member want to leave the business.

DON’T cloud issues in secrecy

Nondisclosure to your partner or family is even more unprofessional than non-disclosure to your business associates. Be clear, open and honest with them. It’s their future too.

DO daily ‘check-ins’ with your partner or family

In a start-up so much happens in a day. Check in for 5 minutes every morning or night with an update of the day. You’ll be surprised how this takes the pressure off the relationship.

DON’T assign roles/responsibilities based on family history

Take time to scrutinize each person’s natural abilities and talents when assigning roles.

DON’T underestimate the journey

It will ALWAYS take longer, cost more, be more of a risk, and be much harder than you think.

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