Tradition contains that you should never discuss at the dinner table: politics, religion and personal financing. Even if you personally feel sensitive eruptions that seem to be inherently perfect on these subjects like lava in an active volcano, the common sense whispers that you are not sure of 100 percent of your audience is good to avoid.
As far as I know, going to business with a friend is not an idea that the tradition starts with the same kind of memorable curiosity in advance.
According to the above example, the common sense can whispered that this system is a possible dangerous, but the excitement that is shared on the concept of spending your work on the person close to you can provide an view of an view.
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Experience, as always, is the best teacher to get back in doubt – and when I have a lot of experience in starting a business with people who have not shared a kind or any other social relationship. I can say with the belief that you can successfully join financial and sensitive forces with the person you feel affectionate, but there is no guarantee that the relationship will remain the same regardless of the result.
With so much in line, this option is deeply and from each angle before making any irreversible decisions. Happily, lack of proverbial knowledge about the matter does not mean that its trail bloggers have not provided a rich funds of practical knowledge for your careful consideration:
1 Clear the introduction, responsibilities and expectations
One of the most important steps to start a business with a friend is to define the role and responsibilities of each partner. Although it may seem unnecessary at first – especially if you share the same skills or interests – weakness in this region can cause misunderstandings and resentment over time.
- Evaluation of individual strengths and vulnerability: Identify what each partner brings to the table. For example, a person can gain skills in marketing and sales, while on the other hand is more suitable for operation or financial management.
- Define job titles and duties clearly: Assign specific tasks to each partner to avoid overlap or confusion. It ensures accountability and allows the business to handle efficiently.
- Set Performance Expectations: Agreed to the level of work, deadline and promise. If one partner works full -time in the business, the other is part -time, then this discrimination needs to be resolved in front.
Initially, these roles clarify, you can prevent disputes on who you are contributing more or lacking expectations.
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2 Establish a shared vision and target
A shared viewpoint is the basis of any successful business partnership. Before committing an initiative, sit with your friend to discuss your long -term goals for business.
- Align in priorities: Make sure that both of you agree with the purpose of the business. About what it is to make money fast, make a permanent legacy, or to follow a Passion? Incorrectly priority may occur after friction.
- Define success: Success means different things to different people. For a partner, it can mean rapidly expansion, for the other, it means a small but a steady operation.
- Expect Future Challenges: Possible obstacles and discuss how you are planning to handle them. For example, what happens if a partner wants to get out of the business or if financial difficulties occur?
These conversations make sure that both partners are on the same page about the direction of the business.
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3 Draft legal agreement
Even if you believe in your friend clearly, formal legal agreements are necessary when starting a business together. These documents protect both sides and provide clarity when disputes arise.
- Partnership or Operating Agreement: These agreements outline the ownership percentage, profit-sharing system, decision-making authority and disputes outline of procedures to resolve the disputes.
- Exit Strategies: Plan in situations that one partner leaves the business or sell their share. Specify how the ownership transfer will work and the rest of the partners have the first rejection right.
- Continuous Plan: Address what happens to unexpected events such as bankruptcy, illness or death. These measures can prevent sensitive and financial turmoil in place.
A good draft legal agreement not only protects your interest but also reduces misunderstandings that can endanger your friendship.
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4 Open up and communicate frequently
Good communication is important in any partnership but especially when cooperating with a friend is important. You may already have a Personal Communication Habit in Strong, requiring additional levels of transparency and formality for professional relationships.
- Determine check-in regularly: Hold weekly or monthly meetings To discuss progress, challenges and goals. It combines both partners and ensures the issues are immediately resolved.
- Be honest with anxiety: If something does not work-if it is the process of distribution or decision-making processes-consider it immediately instead of increasing the vertical.
- Set the boundaries between personal and professional life: Avoid spreading the workplace disagreements in your personal relationship. Similarly, do not allow personal problems to interfere with business decisions.
Open communication encourages faith and confirm that both partners are hearing and valuable.
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5 .. evaluate the power of your friendship
Before dipping in a business together, keep an honest eye on your friendship to determine whether the entrepreneurs are strong enough to withstand the pressure.
- Check your work relationship: Consider cooperation in a small project before committing a full business initiative. It allows you to determine how good it works together under pressure.
- Discuss the solution style of conflict: everyone operates the disagreement separately. Talk about how you go to conflict-be it through medium, voting system or third party arbitration.
- Evaluate the situations of life: Make sure that both partners are in a personal and financially stable position before starting the business. If a partner works with a significant life change (eg, divorce or debt), it may not be the right time for them to take over their responsibility.
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I have come through friend-to-business-partner transition and can be done. However, it may be wildly mistaken. Keep in mind that you will probably never be able to distinguish the business from personal. One of my faith as a lifetime entrepreneur is an artificial difference between whether you are partnership with your siblings or college roommates. All businesses are private, so make sure you are ready for the weather before the risk of something valuable like friendship.
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