Hi Marilyn. I have worked in a family business (in fact, we started it up together, including with an in-law) and am familiar with many of the thrills and curses of working with family. It almost broke the family down (not just the two of us in the business but all the other siblings and parents and kids got involved as the drama in the company unfolded) but in the end, because our family is more functional than dysfunctional to begin with, we are all stronger for the experience now.
It's way too long a saga for me to type (I stink at typing) but suffice to say that we two brothers who were the principals at the start-up had differences in experience, expertise, work/management/interpersonal style, disclosure levels and vision that all that conflict overwhelmed our personal realtionship such that we had to showdown in business to sort it out. I lost, at least in the near-term, by the way but live to tell about it. In fact, I now work with him on a consulting/fee basis as he undertakes his next start-up now -- this arrangement works much better.
I'd be happy to share more of my experience and perspective if you'd like to ask.
Best,
Mark