How to Start a Business with Your Friend
- Written by: NewsServices.com
Friendships have proven to be the backbone of many successful enterprises. From the fashion-forward pals who founded Juicy Couture nearly a decade ago to the moms (and BFFs) with a passion for nutritious snacks who founded Tasty, pairs of close friends operate a number of big-name companies in a variety of industries.
Therefore, if you are thinking about turning your partner in crime into starting a business together. Here are some good tips you should take into consideration.
Make Sure you are Compatible as Business Partners
The qualities that make people great friends do not always match the qualities that make people great business partners.
Your friend's tendency for being late, for example, may be endearing when she arrives at happy hour (20 minutes late), but it can be aggravating when the same thing happens during a crucial business meeting.
Set Expectation and Goals
You should assess your compatibility as business partners, as well as make sure you are both on the same page regarding your goals, according to Zangara. “Sit down and discuss your aspirations for beginning a business together,” she suggests. “How do you see this company developing? “Are you in agreement?”
Get Everything in Writing
While every firm is different in terms of whether or not it has to form an LLC or register for a DBA, you should get some kind of legal papers in place for your partnership. “Women prefer to avoid confrontation — we don't want to ‘offend' our friend by asking them to write things down,” Creel explains. “We frequently rely on our emotions, which does not work in business. You must safeguard yourself.
Don’t Allow Money to become an Issue
If you're not careful, money has a weird way of separating even the closest of friends. So, take it from Amy Weicker, who runs a business with her best friend, Brenden Dilley, a writer and self-help guru: “Do not allow your business and personal assets to commingle at any time,” she advises. Instead, create a company account to which both of you have access. (This will also keep your personal information safe.)
