There are pros and cons to starting a business with a friend. On the one hand, you have the benefit of having someone you trust at your side explains Peter DeCaprio. On the other hand, you need to be very careful not to let your personal relationship get in the way of making tough business decisions.
Here are a few things to think about before deciding whether or not to start a business with a friend.
1. Make sure that you have the same vision for the business.
If you and your friend can’t agree on basic things like what type of business you want to run, or how you should market it, then it’s not going to work. You need to be on the same page if you’re going to make this work.
2. Be honest with each other.
If one of you is sinking more money into the business than the other, or if one of you is doing more work, you need to be able to talk about it honestly. This can be tough, but it’s important to have a clear understanding of who is doing what in order to avoid any resentment down the road.
3. Keep your personal relationship out of business decisions.
This is probably the most important rule of all. If you start mixing business and personal decisions, things can get really messy really fast. You need to be able to make tough decisions without worrying about how they will affect your friendship.
4. Have a solid backup plan.
No matter how well you and your friend work together, things can always go wrong says Peter DeCaprio. Make sure you have a plan B in case things fall apart. That way, you won’t end up losing everything you’ve worked for.
5. Have a clear separation of duties.
This is especially important if you’re working with a friend in a partnership. Make sure you both know what your responsibilities are, and stick to them. This will help prevent any misunderstandings down the road.
6. Set some ground rules.
If you’re going to be working together, it’s important to have some ground rules in place. Decide how you’ll handle disagreements, how you’ll make decisions, and what will happen if one of you wants to leave the business. Having these things spelled out ahead of time can help avoid any nasty surprises down the road.
7. Know your limits.
Just because you’re friends doesn’t mean you can do everything together. If one of you is good at accounting and the other isn’t, then you should probably outsource the accounting to someone else. You don’t want to end up in over your head.
8. Be prepared for things to get messy.
Business partnerships are always a risk. There’s no guarantee that things will work out, even if you and your friend have the best intentions. Be prepared for things to go south, and have a plan in place for what you’ll do if it happens.
9. Be prepared to work hard.
Starting a business with a friend is no walk in the park. You’ll need to be prepared to work hard and put in long hours if you want to make it a success explains Peter DeCaprio.
10. Make sure you can handle the stress.
Running your own business can be really stressful. If you’re not able to handle the stress, it’s not going to work out.
In conclusion, starting a business with a friend can be a great experience, but it’s important to take into account the risks involved. If you can handle the stress and you have the same vision for the business, then it may be worth a try. Just make sure you set some ground rules and have a solid backup plan in place.
So, should you start a business with a friend? It really depends on the situation. If you can make sure that you have the same vision for the business, and if you can keep your personal relationship out of business decisions, then it’s definitely worth considering. But if there are any potential problems lurking down the road, it may be best to steer clear. It really depends on your situation. If you can agree on the basics and you’re prepared to work hard, then it might be worth a shot. Just make sure you have a solid backup plan in place in case things go wrong.