If you’ve had a brilliant business idea that you’ve shared with a friend, and that friend has contributed lots of fun ideas to the business as well, it can be easy to assume that you should go into business together. However, there are a few things you want to consider before you fully take the plunge. Here are five questions that you should definitely ask yourself before you go into business with a good friend.
- Do you work well with others? Before you decide to go into business with anyone, it’s important to know how well you work with others. Do you feel like it’s easy to listen to other people’s ideas, even when they conflict with yours? Do you get defensive when your suggestions aren’t appreciated? You are going to run into these situations and if both you and your friend aren’t flexible enough, things could get sticky.
- Is your friend reliable? Before you go into business with anyone, particularly a friend, you want to know that person is responsible and reliable. Will they make impulse purchases using petty cash without consulting you? Will they stay on top of orders and shipments? If you have any doubts that your friend will be professional and mature at all times, then you shouldn’t go into business together.
- Are your separate roles clearly defined? When you go into business with a friend, it’s important that you do not share responsibilities, but rather that you delegate responsibilities to one another in accordance with your roles. If you want to open a franchise business together, then you can learn all about the different positions that are necessary for your business of choice atcom. This way your small business won’t turn into petty drama within the first few weeks of opening.
- Do you both respond well under pressure? When it comes down to it, running a business isn’t easy. There are going to be times when the pressure is really on to make end’s meet, to accomplish tasks in a timely manner, and to keep things running smoothly. If either you or your friend do not work well under pressure, then you are probably not going to make it together. You need to be able to see the big picture at all times, especially when the going gets tough.
- Are you both financially stable? Let’s face it, if you can’t manage your personal finances, it’s not going to be easy to manage your business finances. It’s important that you make sure your friend is in a healthy financial situation, and before you start applying for loans, you want to be sure that you’re in a healthy financial situation, too. In the end, it’s not just about knowing whether or not your friend will be a good partner for you – it’s about being sure that you will be a good partner to your friend.
September 8, 2015