They’re clearly your friends for a reason, but could they also work as business partners?
Creating a business with a friend might seem logical. You know them, like them, and trust them. While some business owners recommend partnering with friends for new or existing ventures, others actively avoid it. Many risks come with partnering with friends for business, like fallout or breach of trust, to name a few. But should you consider having a friend as a business partner? Read this blog to find out more!
Why You Should Partner with a Friend for a Business
Partnering with a friend could be a fantastic idea for your business. This is especially true if they have admirable qualities or strengths that you can utilize. Specific factors to look out for in a friendship include:
A Strong Work Ethic
You want your business partner to have a strong work ethic so that this partnership is not one-sided. Partnering with a friend is a great way to do this. Do they pull long hours? Do they have the drive and determination to go the extra mile?
One of the biggest causes of failure in a partnership is a lack of balance between the partners. Select a friend with a great work ethic who will put in the same amount of work you do. A better idea is to set a boundary before working together to hold each other accountable.
Admirable Qualities and Characteristics
You’ll know your friend inside and out. This means you will have noticed admirable qualities that would lead you to partner with this person or at least cause you to consider the possibility. These characteristics include integrity, which is vital for having a successful partnership. Another key quality or characteristic would be how persistent they are. Many startups fail in their first year. So, you need to partner with someone who will remain dedicated to your company goals and work hard to keep trying, no matter how many setbacks.
Why You Shouldn’t Partner with a Friend for a Business
There are, of course, certain things to consider when thinking about going into business with a friend. It’s essential to consider both the good and the bad when making a friend your business partner to evaluate whether this is a good idea for you both. These include:
Characteristics and Qualities You Don’t Want
While you might love your friend, there are qualities or characteristics you can have at a friendship level that you do not want to progress to anything more. These include having a big ego or being all talk and no action. These qualities would insinuate that you must do all the work and pick up the slack in the partnership while your friend does little or nothing to help. Another quality you might want to avoid is someone who is too passionate. This can lead to impulse actions with no planning or foresight – some passion is good, but too much can lead to a disaster.
If You Are Scared the Partnership Might Ruin the Friendship
There’s no easy way to say this, but the business partnership might cause your friendship to crumble. A new level of strain and stress comes with friends becoming business partners as you invest your money, time, and work into a joint venture. It might be that your friendship doesn’t make it. Suppose you think this might be possible before any initial talks begin. In that case, this might not be the best choice for your already-existing relationship.
Having a friend as a business partner has many positives and negatives. Someone with all the right qualities and characteristics would be the perfect candidate. It could lead to your friendship soaring to new heights while creating a successful business venture. However, it might also lead to the demise of the already existing relationship, a risk you will have to take.
If you need business advice, don’t hesitate to contact Business Coach Tim. I would love to work with you to help your business thrive!