Starting a company with your best friend provides many advantages over starting a company with a stranger. However, because you are best friends, professional situations may get awkward, and you may lose respect for each other. Learn some issues you’ll need to consider before committing to building a business with your best friend.
Do You Have the Same Goals?
It’s important your best friend and you discuss your business goals. For example, if one of you wants to create a startup that can last for decades and the other wants to sell the company in a few years, you’ll be facing conflict if you decide to become business partners.
Are Your Skill Sets Complementary?
When starting a company, you’ll initially be filling most or all of the roles yourselves. Make sure you are both equipped for undertaking the different demands of running a business. If not, ensure you can afford to hire workers who excel in the areas you don’t.
Are Your Work Habits Similar?
You’ll need to know that your best friend won’t be slacking off as you’re focusing on your business. If one of you devotes significantly more time to your company than the other person, you’ll end up taking on your best friend’s work as well as your own. The business will most likely dissolve as quickly as it began.
Do You Handle Finances Appropriately?
You’ll want to know how your best friend handles finances and make sure it’s in line with your company’s needs. For example, if you’re both savers, your company may not expand quickly enough. If you’re both spenders, you may not hang onto capital as long as you should, or you may spend it on things that won’t grow your bottom line. Ensure you’re on the same page with appropriate spending habits for your business, and hire someone to oversee your company’s finances if needed.
How Do You Handle Conflicts?
A solid and effective method of resolving conflicts is required for running a successful company. Otherwise, proper decisions won’t be made in a timely manner and you won’t fulfill your business goals.
Will You Get Everything in Writing Beforehand?
Before starting your business together, clearly write out your agreed-upon rights, responsibilities, and expectations. Detail your vision of where the company will go, the targets you want to hit and the roles that need filling. Break down the details behind ownership, investment amounts, conflict resolution methods, compensation amounts and succession plans. Define what will happen if your business fails or one or both of you wants to sell it. By having everything laid out in writing, you’ll be better equipped for resolving issues as they arise.
Make sure you’re on the same page with business-related issues before starting a company with your best friend. For more help with growing a business, reach out to the friendly experts at USA Staffing Services today! We have the back office solutions necessary to help your company grow quickly!