Maybe the heading of this post made most of you shake your head. It is common knowledge that business and friendship should never be mixed together, and this is a good advice in general. What’s more, some people believe that one of the easiest ways to lose your friends is to run a business with them.
While there’s a lot of truth to that all, a good partnership is possible. In some cases, it can even turn into a synergy that allows both sides to remain competitive on the market.
Why Run a Business with My Friends?
There are many good reasons to start a business with your friends as follows:
Capital — No matter what kind of business you want to start, it will require the certain financial resources and significant amounts of money to begin producing goods or services. That could be a serious problem in event of capital-intensive projects, which are usually unachievable without a startup business loan. Alternatively, you may rely on a good friend when you’re in need of money for capital investment.
- Fear — A business venture into “little-known waters” could be very risky and it’s much easier to go into that venture together with your good friend(s). The main advantage here is that you’re going to learn from each other and progress faster.
- Trust — This is surely one of the best reasons to be a business partner with your friend since the trust is the key aspect of every partnership.
- Time — If you have a family or full-time job (or maybe both), chances are slim you will have enough time to handle the entire business project all by yourself. A partner or friend can shoulder some responsibilities and save you a lot of time.
3 Simple Tips on How to Work with Friends
If you’ve decided to go into business with your friend(s), make sure to check the following tips:
Establish Regular Meetings
Communication is of utmost importance when it comes to relationships. Same goes for business partnerships. In business, misunderstandings may quickly arise if the communication is not constant and good. To prevent this, you should take the time to specify the time and place for your business meetings. So, be sure to establish regular meetings with your friends.
Establish the Good Relationship in Writing
There are two main forms: legal entity and LLC. No matter what option you choose, make sure to discuss all the essential things related to your partner’s logistics, including addition, dissolution, terms if someone gives up, and so on. That way everything will be agreed and clearly outlined on paper if any difficulty occurs so that misunderstandings and conflicts (if any) will be much easier to resolve.
Give Priority to Your Friendship
Remember that your friendship must be the first and foremost thing in any situation. If the things begin to sour for some reason, it’s always good to communicate early and honestly to determine if your business can continue thriving or not.
Going into business along with friends is definitely not something you should take lightly. However, when undertaken with in-depth planning, good communication, and honesty, it is likely to be a beneficial and a fun experience for everyone. Not only does it will make your business thrive, but it can also make your friendship stronger and better.