• September 15, 2022
  • Adrina Martinez

It is indeed like a dream to have a business with your best friend. Don’t compare it with doing homework together during school days! Running a business is a different experience.

Whether or not you should pitch in your friend to do business with you would depend on a variety of factors.  It would be a journey full of ebbs and flows for business owners like you. Are you ready for it?

It is well and good if the answer is ‘yes’. Both of you must have a certain level of understanding that is needed to run a business.

It should not be like you hit upon this idea while partying together. Oftentimes, random things pan out to be disastrous. It can hamper your friendship.

Don’t think that you should not begin a new project with a friend! At times, it turns out to be the most pivotal step towards your victory.

What should be your concern then? Make sure you both have the skills and passion for this particular business.

Refrain from making vital financing decisions like borrowing without each other’s consent. Discuss with your friend before you take out bad credit loans that involve no brokers.

A healthy discussion between you two might even omit the need for borrowing also. If you want to be lucky for each other, make it a point to ascertain a few things before you get into this partnership business.

Read this blog to understand these aspects carefully.

Weigh in your potential before starting

Both of you must be good friends. Otherwise, you would not have thought of starting a venture together.

Don’t let your emotion for the friend justify your decision! A business needs equal monetary contribution from your end also. So, if it does not work out, you will lose the money.

You should be extra cautious and less emotional when it concerns your business. Remember a few pointers to make sure you should ask your friend to participate in your business.

Have old partnership experience

If you and your friend are old partners and have handled quite a few projects, you will definitely have an advantage this time. You know how you can work like a team. You can actually complement each other.

Have required skills

As business owners, both of you need to have some skills to start and carry on a business. Check if both of you are skilled enough. Also, find out if some training can help you gain the skills easily.

You need to take care of diverse functions while handling the business. Each of you should have the necessary expertise to help your business grow. Otherwise, it will be a failed endeavour for you.

Have necessary sources of finances

You cannot think of initiating a venture without capital. Since you two will work together, you might not have to look for an outside source to borrow money.

Your collective saving can make up for the sum you need to kick-start the project.

Have the needed level of maturity

Running a business will be overwhelming. At times, you might find a situation very disappointing. You might even break down and start the blame game.

It is a real-time situation for every business owner. It is not the right way to behave  in such situations. It will be your responsibility to tackle the situation with maturity.

Instead of focusing on each other’s fault, you must work out ways to overcome the problem and move on.

Perks of having a business with friend

You cannot foresee if the project will be a hit or flop. But your efforts, expertise and way of dealing with problems will surely matter in this journey.

Find out how you can benefit when you run a business with a friend.

Equal risk sharing

You have to take risks in the business. When you have the support of your friend, the burden of risk gets divided equally between you two.

You know your friend will be there at the time of facing any challenge occurring in the business. Your friend will have your back in any event of a dispute arising in the business.

Get an adviser at free of cost

Your friend can give a better opinion on any matter related to the business. It is because your friend is also a part of the business.

You have the opportunity to seek a second opinion on any matter. Besides, you can guide your friend in different types of situations.

Fewer chances of disagreement

It is the biggest perk of having a business with your buddy. Both of you will encounter the least chance of disagreement. You will anyhow figure out a mid-way to work together.

You need not have to pretend in front of your friend. You can be casual in your approach while communicating about business affairs.

You can discuss and share the workload without overwhelming each other. Both of you can act as a backup alternative for each other.

Brainstorming ideas becomes easy-breezy when you have the best support system in the world. Your passion and area of interest have coincided, and for this reason, you two are there sharing operations of the same business.

The bottom line

It is exciting to start a venture with your favourite friend. Please note that it is not like a casual meeting you usually have with your friend now and then. Business is a serious matter.

Carrying on a business with a friend might seem like a cakewalk. Both of you should be prepared to face and overcome the challenges.

You should not begin the business right away after ideating. First, you need to create the blueprint for the business. Having a written format of how you want to go ahead with the business would be beneficial for you. Before getting into this entrepreneurial journey with your friend, pay attention to the plus and minus points of it. It will give you a clear vision. Then, you can discern if you should proceed in this direction or not.

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