If you and your buddy are both businessmen (or aspiring entrepreneurs), the common issue is probably the brainstorming of new business ideas.
On the other hand, let us assume that you guys have come up with a great idea after having a great brainstorming session.
Surprisingly, while researching the industry, you found that the concept had legs.
So what’s next? In the beginning, you need to find out if you can run a business together with your mate or not.
If yes, make sure you don’t forget the tips we are going to talk about.
Match your Work Ethics
This may sound a bit unusual, but the job references for each other should be reviewed.
Well, you can consider your friend as a good person, but not a good employee.
Running a business can be more hectic when compared to being an employee.
Your business can often bring the best out of your capability.
In conclusion, Starting a business needs a huge effort as well as lots of time.
At the end of the day, make sure you and your friend can invest enough time together with patience.
Communication Is The Key
Well, our personal experience has made us realize that communication is a crucial part of the relationship.
The same concept must be applied to your partnership business. In this case, knowing each other inside and out can be a problem as you can take things for granted.
Josh Rubin, Post Modern Marketing‘s founder, and CEO understands how important it is to maintain clear communication lines between you and your business partners.
He once said “In a previous version of my company, I employed two of my best friends. I trusted my friends, so I took their word for it when they said that they were staying on top of their roles. But, pretty soon, an IRS audit uncovered that my friend was paying themselves more money than we’d agreed upon, for hours they weren’t working. As a result, the relationship, and the business, were damaged beyond repair. So, my one big tip for anyone starting a business with friends is: Don’t start a business on promises alone.“
Even if you trust your friends blindly, you still need to talk about everything clearly. Especially the hard topics.
Be Clear with Responsibilities
You need to be clear about your responsibilities when working in a group.
It will ensure the smooth running of your company, minimizing the risk of uncertainty and even helps to deal with power struggles inside your organization.
The only way to implement this is you simply have to decide what each of you is going to do in advance.
In addition, give the job titles for yourself, then write a job description that sets out unique roles for everyone.
Set the Work Rules
For a better business friendship, you need to understand the preferred work styles of each other before starting a business together.
It is important to sit for a long discussion to find out your preferences.
It might be the case that you may love to work in the morning but your partner may like to sleep in.
To solve this kind of problem, don’t forget to talk about the work style in advance.
As a result, this will balance your expectation and also you will try to embrace and learn from the work practices of each other.
Be Strong With Finances
Last, not least, starting a business is all about your investment.
Importantly, money doesn’t talk about friendship and more importantly about business friendship.
You must be clear about how much each one of you is willing to invest.
You may also need to run reports on shared credit. This will be helpful in securing future business loans.
Furthermore, at the same time, you need a clear plan about who will be paid once the company hits a point that can afford payroll.
This might sound awkward, but this is the only way to maintain frankness, transparency and trust are critical.
In conclusion, make sure you sit and discuss the five things we have mentioned above before starting a business friendship.
You’re going to have a better shot at success if you follow all the instructions.
Take your time to set your expectations and goals. With this, it is sure that you will thank yourselves later.
You May Be Interested in 10 Ways to Support Your Friend’s Small Business.