Once in your life, you have the opportunity to start a business. Yes, you may have an amount set aside to invest in a startup. But you fear you don’t have the skills and finances to succeed in the corporate world. Eureka! Your best friend who you know quite well who owns a business (and who is successful) comes to mind and answers your fears and doubts.
However, are you in a haze to start a business with your friend? Perhaps, you are reflecting on if things do not work out, your friendship will be shattered. Still, you know that when it comes to tax matters, the two of you have the same point of view. Well that’s a good sign! But partnering with your best friend in a business venture is a completely different picture. Below are some favorable and unfavorable reasons why you should consider your friend as a business partner:
- Work and distribution of invoices.
Working with a friend can be fun. The fun is doubled because the bills are divided in two.
- Flexibility in business management.
Your friend or associate may have the knowledge and skills to run a business that you don’t have. Also, one of you may have enough time to run the business. Either way, if your strengths and weaknesses complement each other, it means that both of you can compromise. It is a give and take relationship, but in this sense, you are both giving and receiving what is good for your business.
- Mutual and shared responsibility.
Each partner is almost responsible for his own decisions and actions, the decisions and actions of the other partner, and the actions of any of his employees.
- Fiduciary duty of conscience.
You decide and act for the benefit of another person or for the benefit of many, even while taking yours in the background. Let’s say you have a flower shop with a partner and you are presented with an amazing deal to open another store without your partner, your fiduciary duty means that you have to give up the opportunity or share it with your partner.
- Having a business partner can provide skills you don’t have, money, and connections.
- Share the workload, financial burden, and creative ideas.
As the old adage goes, “two heads are better than one.”
- Disagreements on minor and major issues.
Having a friend as a business partner is supposed to be fun, but if you don’t want to ruin it by working closely with someone who irritates you, then you might as well run your own business now instead of buying from your partner later because you realized that you basically didn’t. you agreed with everything.
It is an excellent idea for any new trade association to do a trial period first. Do a project or two together and if you coordinated well and worked harmoniously, your styles will fit. If so, good luck to your business partnership. If not, it is a difficult lesson to learn and should be avoided.