If you are considering converting your closest friend into a business partner, here are some things to consider before taking the plunge.
If you and your friend are both entrepreneurs (and prospective entrepreneurs), you are undoubtedly used to brainstorming fresh company ideas. You will want to take that entrepreneurial spirit out of your friend’s living room couch and into the boardroom when you come up with a great company plan. That may be a fantastic choice.
Nevertheless, keep in mind that there is a proper method and a wrong way to go about beginning a business with a friend.
To be fair, starting a company is never an easy task. Moreover, it occurs to us that teaming up with your favourite person might alleviate some of that stress, or at the very least make it more enjoyable. That could very well be the case.
However, starting a business with a friend changes your relationship. You will need to interact with each other more formally during working hours than you do would if you were just hanging out at home, especially if you’re co-leading a team of employees.
Without further ado, lets us share with you the right stuff, just in case you are thinking of starting a business with your close friend. All you need to do is to keep these tips in your back pocket.
Put the ground rules in place
When starting a business with a friend, one of the most important things you can do is establish clear ground rules and put everything in writing before you begin.
You do not have to get into the legal weeds before you start, but it is a good idea to agree on the key business structure, vision, and processes before you get started.
Agree on an end goal before you even get started
It might seem a little doom and gloom to start talking about exit strategies before you have even started! However, you must align your expectations for how you will build the company, run it, and eventually exit it.
If you do not agree on these fundamental strategies, you will almost certainly end up in conflict.
Don’t be afraid to go against all odds
You hear many stories of people who started a business with friends and everything went wrong. What would be my recommendation? ‘Don’t pay attention to them.’
If you want to be a great entrepreneur, you will have to overcome obstacles and accept learning opportunities disguised as setbacks along the path – so go for it!
Trust One Another
You might think that trusting your best friend is the same as trusting your business partner, but that is not the case. We all know that our friends have our best interests at heart, but when it comes to business, you must also trust their judgment, especially when it comes to their key specialities. We cannot all be specialists in all fields.