#11 Going Into Business With Friends
Going into business with a friend can sound like a really great idea and many people do it successfully. Unfortunately, I’ve seen it time and time again where misunderstandings, life changes and frustrations lead to the breakdown of the business and also the friendship. The good news is, these breakdowns are often avoidable with the right preparation and a rock-solid iron-clad agreement.
In this episode, I flag the areas that I consider absolutely vital when going into business with a friend. I discuss the importance of recording your agreement in writing and being crystal clear on every little thing, down to the smallest detail. I share some of the common areas that lead to breakdowns and how taking the time to do things properly can help you navigate any grey areas that arise between business and friends.
The best scenario is that you’ll never have to rely on your document but if you are starting a business with your friend, do it with your eyes open and take the time to put everything in writing at the very beginning. You’ll never regret putting the care and attention into something that could potentially save your business and your friendship.
Topics discussed and where to find them
[1:30]: If you go into business with friends, do it with eyes wide open and do it properly, making sure there is an exit strategy in place should something go wrong.
[2:10]: Record your agreement in writing and be crystal clear on everything
[3:07]: The beginning when everyone is happy is the ideal time to put in writing all the details of the business
[3:41]: Understand the responsibilities of each person working in the business, right down to the smallest detail
[4:30]: Have a dispute resolution clause to nip things in the bud and pave a positive way forward
[5:00]: Have a clear exit strategy in place so that you can opt-out if something goes wrong without destroying the business or the friendship
[6:00]: Life circumstances change which is why it’s so important to have a solid document to refer back to
[6:50]: Different priorities and timeframes for business owners can often lead to frustration
[7:25]: The grey areas of friendship and business can be navigated with a rock-solid document that you’ve put together with care and attention right at the very beginning
[7:55]: You can’t contract bruised egos and hurt feelings but solid documents can put you in the best position to try
[8:30]: There is no substitute for preparation