Going into business with friends and family members might well be the easiest way to start a business enterprise. And I’m beginning to understand why it’s also one of the easiest ways to end a friendship.As with any venture, each partner has his or her own idea about how the project should proceed. Navigating those differences, however, becomes a special kind of hell when friends and family are involved. Maybe you don’t want to tell your partner what you really think, because you don’t want to hurt a friend’s or relative’s feelings, so you swallow your ideas and let the resentment build. Or maybe you realize you don’t like who the other person becomes in a business context. Or maybe emotional wounds covered for years are suddenly exposed.
Soon it all explodes in a way that affects not only the two of you, but also other friends and family. And it leaves you wondering: Is there a line between business and friendship that is simply better not crossed?
via Tim Grahl.
Michael on March 15th, 2005 at 6:33 am
I don’t believe frinds and family don’t work together in business - most of the time.
Make your own ideas into businesses and if you need help from friends or family pay them almost the equivalent as to what you would pay someone in the real world, and do your best to pay them in cash rather than equity.
Dane Carlson on March 15th, 2005 at 6:45 am
Excellent advice, Michael. Your idea goes farther than that, too: I say never take on partners when what really you need are employees or contractors!
Domain Blog on March 18th, 2005 at 6:34 pm
I’ve tried going into business with friends before. In both cases, I ended up doing most of the work. People usually want to partner with you becaue they want to get a piece of the action yet they don’t want to put any effort into the enterprise.
I’m not cynical. I believe it is possible to go into business with friends or family. I’ve seen others make it work. For me, I know now that you should only choose a friend or family member who has a proven history of hard work, reliability, honesty and intelligence. Otherwise, forget it.