The Perks and Pitfalls of Hiring Your Parents

Allen Esrock of NxtGen Nexus weights in on how to optimize the free labor and other benefits, and how to manage conflicting goals, sibling resentment, and suspicious non-relatives who work for you.

What are the advantages and pitfalls when you hire your parents to help with your new business? Sure -- the free labor and unconditional enthusiasm are nice. But hiring mom and dad could create resentment among your siblings who feel shut out from the experience, distrust from non-relatives who work for you, and messy decisions over when to start paying your parents if the business thrives or how to cut them loose if the business struggles. In this video, Kim Eddleston of EIX and FamilyBusiness.org interviews Allen Esrock of NxtGen Nexus about how to have a harmonious partnership with parents who want to help.

The key, Esrock says, is having conversations about what you hope to accomplish, then spelling out expectations in writing, before you bring mom and dad on board.