Friends As Business Partners

Business Partnerships

By Cherie Burbach

Can you and a friend run a successful business? Of course!  Many companies begin simply because close friends thought of a great business idea and went for it. Your friendship and business can both thrive when you keep a few of these things in mind.

Mutual Respect

When you bring someone in your life as a friend, you naturally develop a level of respect for them. Make sure you keep this in mind when you establish your business together. You probably both have different strengths that make your friendship work, so capitalize on those for your business. Don't be afraid to make your opinions heard, but do it with gentle honesty.

For example, if you strongly disagree with your friend, you could say, "I need you to hear me on this. I'm speaking as your business partner right now and not your friend." This will let your friend know that you are serious about your stance.

Establish Boundaries

One way to protect your friendship is to establish a formal business plan. Clearly define the roles each friend will play in the business, including decision-making, financial control, and creative input. Outline what is expected of each of you so there is no confusion later. Some questions to clarify:

·         Where will you run the business? (Your home, your friend's place, a separate location, etc.)

·         How many hours will you both devote?

·         How much money do you need to start things up?

·         Who will help you mediate if you're locked in disagreement?

·         What is the goal of your business? (How many products do you want to make? How many clients do you want to have?)

You may also need to make some changes to the boundaries of your friendship when you aren't talking about business. Here's more on how to do that.

Establish Friends Only Time

The camaraderie you share is part of the reason you went into business with your friend, but there needs to be time in your friendship where business is off-limits and you just go back to being pals.  Some ways to do that include:

·         Set a designated time of the day and week where you don't discuss work. Say, not after 5 p.m. or Sundays.

·         Don't be afraid to take breaks from your business if you feel the pressure is hurting your friendship.

·         Get a third party to help resolve issues. This helps you go back to being friends more quickly after a difficult business decision where you disagree.

·         Mark time on your calendar for "friend stuff" when you connect as pals without thinking about your business.  

You can keep your friendship strong and still build a successful business. The key is making sure communication is strong and you are able to adapt to your changing roles.