When starting a new business it’s only natural to turn to your friends.
They’ve always had your back. They were in your wedding. They’re the first you casually mentioned your business idea to. They’re the first to give you free advice, and they’re around when we need a break.
It is rather unsurprising, but more than 40% of new businesses are lead by people who were friends before they started.
Well don’t do that!
Recent research from Harvard Business School indicates that businesses started by friends have an increased risk of what’s called “founder turnover.” Each friendship in the founding team increased the rate of founder turnover by 28.6%!
You’re better off starting a business with a perfect stranger!
The logic is easily understandable: If you were friends first, and business partners second, you have an incentive to preserve the friendship at the expense of the business.
