Interested in setting up a small business with your friend? If YES, here is how to start a small business with a friend with no money and no experience. How much does it cost to start up?
Are you thinking of starting a business with a friend? Should you go alone or you should look for a friend to share the burden of the business with? Starting a business with a friend is one good idea but it is very challenging.
Doing business with a friend can guarantee success at the end because both of you get to share the burden (such as startup cost, operational expenses, bills payment etc.) associated with the business.
It is so unfortunate that most people that started a business with their friends tend to often end up going their separate ways. In this post, I want to help you by guiding you through the process of starting a business with a friend that will lead to success in the long term.
Here are some tips on finding success with going into a business with a friend:
As you are planning in starting a business with a friend, you need to first define the roles each of you will play in the business so as to avoid confusion when the business kick start. Do this at the early stage of the business.
It is better when everyone on the team knows his or her roles in the business operation. In this doing means everyone knows his or her responsibility and each contribution to their growth of the business can be measured for assessment.
Write Everything from The Beginning
Make sure you have adequate legal advice and get it in writing. You should have a signed document that clearly specify your company vision, target, partner roles, ownership breakdown, investment amount, conflict resolution, what will happen and how you will both divide the business asset if one of you decides to get off.
Without this signed document you both may be leaving up to complications that can affect your business and your friendship.
Communication is the top killers in friendship and business. Don’t assume because you are friends you don’t need to communicate always.
Always communication with one another to avoid conflict. This is why it is better to start a business with your best friend than someone you just met few months or years ago.
Sharing thoughts in the business with your friend/partner help to strengthen your friendship and as well as business strategies and goals. It maybe from a that business conversation a million-dollar idea may just spring forth you can never tell.
Quickly Deal with Conflicts in the Business
There is no business without conflict. There will come a time where you and your friend will disagree over taking a decision. It may be whether to employ more staff, spend money on advertising, open a branch or laying some staff off.
Whatever the argument maybe, ensure that it is quickly settled by putting heads together on how the conflict came in the first place. If possible, decision should be put in a filter that support shared vision.
What is this filter?
The filter is how decision should be decided on. These include how you spend money, take decision and your metric for success. So, resolving conflict and having a strong communication is a MUST and always have that in your mind at all time.
Let Everyone In
This is very important when starting a business with a friend. Never keep anything only to yourself, it pays to include everyone. Don’t exclude anyone from making decision about the business. This can lead to conflict and they will not be trust again in the business.
Your friend is a real asset to the business and they should know that by including them when decision even if you are the idea generator. Ensure every of your new employee feel he or she is part of the team not some supporting character.
Have A Partner that Share Same Belief
Birds of the same feather flock together, most of the time friends share same interesting general belief system, you and your best friend partnering in the business will likely find it easier to agree on the literally thousands of crucial decision coming your way, despite having different personal preferences when it comes to detail.
Clearly State Your Goals
When writing the plan of your business, you must state the goals you want to achieve in your business. You also have to assign clear responsibility for who will be managing each part of your business in other to hit that high target, once you know what you want to ultimately want to achieve together, you can articulate what is required from each stakeholder.
You need to choose the structure that best represent your business and your goals, remember, regardless of who you are starting the business with, you need to define ownership very clearly because you can only have one CEO in a business.
Starting a business with a friend can be fun if you know how to put things together to work for both of you. This post has come to make it easy for you. Use the guide explained above and enjoy your business with your friend while achieving success.