“Just because they share your last name doesn’t mean they should share your business profits.”
Let’s get real.
In many African families, the moment you mention you’re starting a business, someone says, “Let’s do it together, we’re family.”
And because you’ve known each other since birth shared rooms, secrets, or even soap you agree. No paperwork. No roles defined. Just trust.
Until things go left.
The Typical Story
You had the idea. You put in the groundwork. Then your cousin came in with capital and enthusiasm. For a while, it worked until:
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They stopped showing up.
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Money started “disappearing.”
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Decisions were being made based on emotion, not logic.
Now, your startup is stalling, and you’re stuck between saving the business and “keeping the peace” at family gatherings.
Why This Happens
1. Boundaries are unclear. You assumed love = loyalty = work ethic. But business requires structure, not sentiment.
2. There’s no defined leadership. No one wants to be “the boss” because it feels like disrespect. So decisions hang in limbo.
3. Accountability feels like betrayal. Asking tough questions becomes “you don’t trust me.”
4. Emotions over efficiency. Business is about KPIs. Family is about feelings. Blending the two without balance often breaks both.
Does That Mean You Should Never Partner with Family?
Not at all.
Some of the strongest businesses are built on family partnerships but not blind ones. The key is to treat the business as a business.
Here’s how:
1. Formalise Everything Especially With Family
Have a clear shareholder agreement. Define roles, expectations, and exit terms. If it feels “too serious,” that’s exactly why it’s necessary.
2. Separate Relationships From Responsibility
Loving someone doesn’t make them a great marketer. Blood doesn’t automatically qualify you to be CFO. Match roles with skill not with surnames.
3. Agree on Salaries and Workload Early
If one person is working full-time and the other shows up once a week, your profit-sharing model must reflect that. Fairness now avoids conflict later.
4. Have Hard Conversations Early
Who handles conflict? What happens if someone wants out? These conversations are uncomfortable, but silence costs more later.
The Bottom Line
Partnering with relatives is not the problem. Blindly doing it is.
If they respect the business, understand structure, and bring real value go for it.
But don’t confuse family loyalty with business compatibility.
Some people belong at the dinner table, not in the boardroom.
Know the difference.
