Can Friends Be Business Partners
Home » Can Friends Be Business Partners?

Can Friends Be Business Partners?

They’re clearly your friends for a reason, but could they also work as business partners?

Creating a business with a friend might seem logical. You know them, like them, and trust them. While some business owners recommend partnering with friends for new or existing ventures, others actively avoid it. Many risks come with partnering with friends for business, like fallout or breach of trust to name a few. But, should you consider having a friend as a business partner? Read this blog to find out more!

Can Friends Be Business Partners?

Why You Should Partner with a Friend for a Business

Partnering with a friend could be a fantastic idea for your business. This is especially true if they have admirable qualities or strengths that you can utilize. Specific factors to look out for in a friendship include:

A Strong Work Ethic

You want your business partner to have a strong work ethic so that this partnership is not one-sided. Partnering with a friend is a great way to do this. Do they pull long hours? Do they have the drive and determination to go the extra mile?

One of the biggest causes of fallout in a partnership is a lack of balance in the partnership. Make sure that you select a friend with a great work ethic who will do the same amount you do. A better idea is to set a boundary before working together to hold each other accountable.

Admirable Qualities and Characteristics

You’ll know your friend inside and out. This means that you will have noticed admirable qualities that would lead you to go into partnership with this person, or at least cause you to consider the possibility. These characteristics include integrity, which is vital for having a successful partnership. Another key quality or characteristic would be how persistent they are. Many startups fail in their first year. So, you need to partner with someone who will remain dedicated to your company goals and work hard to keep trying no matter how many setbacks.

Why You Shouldn’t Partner with a Friend for a Business

There are, of course, certain things to consider when thinking about going into business with a friend. It’s essential to consider both the good and the bad when making a friend your business partner to evaluate whether this is a good idea for you both. These include:

Characteristics and Qualities You Don’t Want

While you might love your friend, there are qualities or characteristics you can have at a friendship level that you do not want to progress to anything more. These include having a big ego or being all talk and no action. These qualities would insinuate that you have to do all the work and pick up the slack in the partnership while your friend does little or nothing to help. Another quality you might want to avoid is someone that is too passionate. This can lead to impulse actions with no planning or foresight – some passion is good, but too much can lead to a disaster.

If You Are Scared the Partnership Might Ruin the Friendship

There’s no easy way to say this, but the business partnership might cause your friendship to crumble. A whole new level of strain and stress comes with friends becoming business partners as you invest your money, time, and work into a joint venture. It might be that your friendship doesn’t make it. Suppose you think this might be a possibility before any initial talks have begun. In that case, this might not be the best choice for your already-existing relationship.

There are many positives and negatives to having a friend as a business partner. Someone with all the right qualities and characteristics would be the perfect candidate. It could lead to your friendship soaring to new heights while also creating a successful business venture. However, it might also lead to the demise of the already existing relationship, which is a risk you will have to take.

If you need business advice, don’t hesitate to contact the friendly experts at Cornerstone Management Solutions. We’d love to help your business thrive.