5 Tips on avoiding conflicts of interests for small businesses

2010-05-06 00:00

<p>1 BE AWARE that, in a small or family-owned business, special favours to family members and friends de-motivate employees and set a bad example. </p>
<p>2 THINK TWICE about offering a contract to a supplier who is a relative. Award contracts on merit. </p>
<p>3 AVOID LETTING family members borrow company vehicles - and don't allow your sister to ask the company's computer wizard to set up her home office. </p>
<p>4 DON'T PUT family members on the payroll if they're not working in the company or can't make a real contribution to the business. </p>
<p>5 THINK OF the future. If you hope to seek investors or go public, dealings with family members outside the business will be questioned. </p>