6 steps to take before you decide to partner with your friend
It’s natural to partner up in business with the people you trust most. Here’s how to protect your relationships when business gets tough
Question: If you’ve ever started up with a friend or family member, what is one thing you recommend someone do in advance to preserve that relationship if the business goes sour?
Set boundaries and rules
“Establish clear-cut rules to guarantee a strong partnership with your friend or family member. And remember: Communication is key. Be honest, trust each other and play off each other’s strengths to promote success.” – Amanda L Barbara, Pubslush
Get your legal documents in order
“It doesn’t matter who you are starting a company with — it could be your best friend, a family member or a complete stranger — you should always have sound legal documents in place. Talk through the worst-case scenario and agree on how disputes will be resolved. Having this conversation when everyone is optimistic and excited will make it easier to keep your relationships intact.” – John Berkowitz, Yodle
Communicate
“Know what’s expected of both parties up front and if the business goes sour you have contracts to back everything up. Communication is key through thick and thin. If the business is going well, make sure everyone communicates it. If it’s going downhill; the same. Express thoughts and feelings out loud so the other doesn’t have to guess. It’ll save any relationship.” – John Rampton, Due
Stop talking about work
“It’s important to maintain your personal relationship, otherwise your business relationship could crowd it out. Do things together outside of work and don’t talk about the business. If your relationship outside of the company remains strong, you’ll be able to work through the tough times when it comes to work.” – Simon Casuto, eLearning Mind
Also Read: Indonesian online travel agency Traveloka bolsters payment facility
Set specific written expectations right out of the gate
“If you can avoid starting up with family or friends you’ve had for many years, do so. If you’re determined to test the waters of your friendship, then make sure expectations are clear right out of the gate. Write them down. Go back and forth. Written documents have a permanence. Failure still hurts. But there’s a clear separation between the business and the personal.” – Joshua Lee, StandOut Authority
Discuss time commitments
“Get clear on exactly the time, energy and financial commitments all parties are putting in. Future changes in those areas will impact your initial agreement. I’ve seen many cases where one co-founder starts spending the majority of their time on other projects. What will you do if this happens? What if one person needs to take on more outside work to support themselves?” – Laura Roeder, MeetEdgar.com
The Young Entrepreneur Council (YEC) is an invite-only organisation comprising world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship programme that helps millions of entrepreneurs start and grow businesses.
The post 6 steps to take before you decide to partner with your friend appeared first on e27.
