TechsPlace | Starting a new business is always stressful and requires great deal of hard work to reap results. You need trusted people to make your dream into reality and with whom you can enjoy your time realizing that dream. Who aside from best friends can be those people? With people you enjoy your time. People say to never start a business with friends and it is quite understandable because of the challenges faced. But with realistic planning, partnership with friends can be the most advantageous venture of your lifetime. Various things to consider before starting a new business enterprise with friends-
- Clarity of your goals- The most important thing to take into consideration before starting a business with friends is to understand everyone priorities. Do you all have the same motivation and priorities? Are you all committed to the same goals? Priorities and commitments change due to life circumstances. Many startups have failed because the partners weren’t on the same page about their goals. So before you decide to start something like a business, sort out your goals and motivations.
- Communication- To avoid misunderstanding and preserve your precious friendship from ruining because of business matters, a clear and regular communication is necessary. Discuss everything from small to big matter over meetings, phone call, email, Slack conversation to keep misunderstanding at bay. This will help preventing small issues from becoming big and your business breaking up.
- Don’t be afraid of confronting your partners- Communications between partners is not always easy and you sometimes have to confront your partners about the business issues. You should not be afraid of arguments and face your friends like you will face other business partners. You can be laid back while reminding them of their duties. The matter of money, responsibilities, and future of your business can’t be ignored if you want to make your business successful.
- Divide roles and responsibilities- When starting a business with your friends, delegate the roles of each partners at the earliest. This includes delegating work like project management, budgeting, marketing etc accordingly to everyone’s strengths. It will not only make your company effective but efficient too and avoid conflict in the long run.
- Don’t run a democracy- To make any business a success, it is necessary to follow a clear structure. Businesses don’t work like a democracy and everyone must work according to their delegated roles. Partners should trust each other to do their jobs and if they work within their boundaries, everything will work out perfectly. Running a business like a democracy and mutual agreement will waste precious time and give birth to animosity and ambiguous organization.
- Ownership organization- when starting business with friends, people make common mistake to divide the ownership equally. Circumstances changes with time and life gets in way. If a partner leaves the company and is still holding shares and earning profits, it could lead to disputes and animosity. The person will earn profits without contributing to the company anything. If equity shares are used instead of shares, it will prevent disputes in the future and the person only get partial equity than full shares.
- Go on a vacation- To avoid yourself from getting stressed, it is necessary to spend some time away from work with your loved ones. It will help you cool your head and fill you with energy to take on the new challenges. You can even tackle the problems efficiently that you were unable to do before.
- Face hardships patiently- Every business small or big, faces difficult time. Cash flow may fall, supply may decrease. These situations may send you in a whirlpool of stress and you may feel no end to it. You may even arguments and disagreements with your friends. At these times, be patient and work hard to overturn the situation. Don’t let the business ruin your precious friendship and the opposite is also correct.