Friends and business - do they mix?

[Goingitalone]

I have the opportunity to start a new business with a friend but I am wary. Do friends and business mix?

 

[Employer]

While there are some exceptions to the rule, the idea of mixing friends/family with business is a high-risk one. Even in a best case scenario it will stretch your friendship/relationship to the brink and that is a successful outcome!

 

[Bradley - SaneChoice]

I certainly think there is an element of risk involved, especially around the relationship aspect as @Bogdan.Ciocoiu mentions.

However, I think it does depend on the type of 'friend' you are working with. In the early days of SaneChoice I worked with a friend who was from the same industry - he came from an Investment Bank. So the structure and 'rules' around how this would work (and the challenges and pitfall of that working relationship) were very clear from the start. As a result, it was a fruitful partnership and although he no longer works for SaneChoice, he remains a close family friend.

 

[midemike]

Try not to mix the two up. Friendship is friendship, business should be business.

 

[iMakeCalls]

Make sure that you have everything in writing and always cover your backside legally,

 

[Mintlo]

In my experience, it is not a good idea. It obviously depends on the characteristics of the friend. It is a very attractive proposition working with someone who you know, trust and share the same passion. But disagreements do happen, whether in business or socially. If differences cannot be reconciled then you stand a good chance of losing a friend, the business or both.

 

[Okdar]

While there are some exceptions to the rule, the idea of mixing friends/family with business is a high-risk one.

 

[hubmag12]

Being friends with someone is totally different from creating something together. Even as business partners, conflict will inevitably happen when two people work together. The majority of them are minor, but eventually you'll settle on something you're quite convinced of and won't alter your mind about, such as the direction the company is taking, its compensation, how much money is being allocated, etc. As the stakes rise in importance, the emotions rise as well. Money has an impact on people's lives. They grow defensive, resentful, and maybe vindictive emotions. It is not recommended to mix business with friendship because doing so would probably end the friendship.

 

[GenuineCCELL]

From what I've seen with my friend who owns a business with their friend, it can be very rewarding, but it does come with challenges.

They understand each other's strengths and weaknesses, share a vision, and mostly communicate well. However, they find themselves not switching off a lot, and talking too much about the business when they get together outside of work. Sometimes they find it harder to make tough decisions too because they don't want to damage their personal relationship. Obviously, if the business fails there is also the financial fallout and how that affects their relationship too, if it were to come to that.

I'd just say it requires good planning, clear communication, and a commitment to maintaining both the business and the friendship, so I wouldn't dismiss it as an idea completely.