The Pros and Cons of Starting a Business with a Friend

About a year ago a friend of mine announced he was starting a home based business with his closest friend. He was extremely excited, and why wouldn’t he be? The two have known each other for years (college roommates, even) and trust one another implicitly. What could go wrong?

Starting a residual income home business is extremely exciting. Starting said business with a friend is a whole other kind of excitement. And, sometimes, not the good kind. It’s risky, complicated, rewarding, challenging and entertaining, and that’s just the first week. A business partnership with your best friend is not a decision to be taken lightly. As fun as it may sound, it’s important to weigh all the pros and cons before making such a commitment.

PRO
There’s an existing level of trust already established. It’s nice to know there’s someone you can count on when it comes to running a business. You rely on their decision making and know they have you and the company’s best interest at heart. A great confidante is priceless.

CON
You and your business partner friend don’t share the same work ethics. You may share similar passions for things on a friendship level but that doesn’t mean you approach work with the same gusto. When one of you starts to bear most of the workload, dedicates more time to making the business successful than the other, negative feelings are sure to surface.

PRO
Getting a residual income opportunity off the ground takes effort and money. Going into business with a friend and sharing financial responsibility helps to take the burden off one’s shoulders and sets the tone for true partnership.

CON
When you have a friend as a business partner, you tend to curb your feelings toward certain business aspects. In other words, if the two of you disagree on how to handle a decision or client, instead of standing by your decision, you may bend a bit as to not upset your friend. How you would normally do business goes by the wayside and that’s never a good thing. .

At the end of the day, business is business and friendship is friendship. Sometimes the two can make beautiful music together. Sometimes the tune can be way off key. Before entering into any type of partnership with a friend, know the pros and cons of doing so. Great friends are hard to find, and even harder to replace.