Why You Should Never Go into Business With Friends
Partnering with a friend or family member for a business might seem like a good idea because you trust them and already know them. It can be tempting to go into business with a friend because it takes away the need to look for a business partner. However, there are many reasons why going into business with a friend is never a good idea.
Emotions Can Interfere with Business Decisions
When making business decisions, especially those that involve money, you want to make them with your head and not with your heart. If your business partner is also your friend, you might be tempted to go with an idea just to make them feel good even though you do not agree with it.
You might also be tempted to let them spend some of the business money since you know them and they feel like they have a good plan. Wanting to please them and not hurt their feelings can end up damaging your business.
Division in Your Friend Group
If the business does not do well or you end up in a fight because of the business, you might find yourself not being able to hang out with your usual friend group because they will be there. It will also cause your other friends to have to feel like they need to pick a side.
You Might Lack Expertise
If you and your friend both have a good idea for a business, you might think you can do it all on your own. If neither of you actually have business experience though, you might find yourself not making the right decisions.
It would be better to partner with someone who has more experience. This person can also act as your advisor and settle problems between you and your friends.
Planning Vacation Becomes Harder
Friends and family tend to take a vacation at the same time. You cannot leave your business alone though, so someone will always be left behind when it comes to breaks and vacations. This can also cause fights because you might not be able to agree on who can vacation and who has to stay behind.
Finances Can Cause Fights
One of the main reasons why people argue is because of money. You and your friends and family might start arguing because you lack money or because you cannot agree on how to spend the money.
When it comes to finances, it is best to leave people you are close to out of the picture.
Using Your Friends’ Services is Also Dangerous
If you need certain business services that your friend’s company uses, you might be tempted to incorporate them into your business. This can be dangerous though. If something goes wrong or a fight occurs, you might be stuck stranded and not able to complete the things your business needs.
Never Mix Pleasure and Business
When starting your own business or using services for your current business, it is best to always use third-party companies rather than a friend or family member.