Setting up a business alongside the people you care for can be a rewarding experience. However, it should be a decision made after due diligence.
Have you ever thought of starting a business with a friend? Well, below are some of the things you have to consider for a successful partnership.
Factors for a successful business partnership with a friend
You should agree on complete transparency regarding all aspects of the business, especially finances.
On this, open a business account that no one can access without the other person’s knowledge, meaning that no financial funds can be transacted or moved from the account without consent. Alternatively, you can have a trusted third party to handle and manage your finances if hiring a qualified accountant is not an option.
You also have to define and assign roles based on individual strengths.
In the case of customer service, an individual who is social and good with people should get this role, and the one who is good with balancing and stock checking should be assigned the stocks department. As business partners, you must agree and function under clear expectations, not emotions. Have a clear job description and genuine expectations.
Set a proper business/project plan for exactly what you want.
Set clear goals that have to be achieved within the set period and visions of the business in both the long and short term. Everything you engage in as partners should be in writing. This includes the contract and formal paperwork regarding your partnership. Consider being in partnership with someone who shares your goals and values. Your strengths should complement their weaknesses and vice versa. Consider having a personality profile check to understand and truly appreciate who they are.
Dissolving the partnership
You can also decide to have a formal way of dissolving the partnership just in case one wants to opt out due to personal reasons or even the loss of interest in the project or partnership.
Having a credit and background check on partners.
See their financial histories to avoid being associated with someone of a dirty financial background like fraud. A background check doesn’t mean that you visit their rural homes or something. It may mean getting to know their past relationships with people, be it based on business or school. Know how they treat and live with people; this is a good guide because it will give you a picture you may not know of.
Ideally, setting up a business with a friend is a brilliant idea because this is someone of common interests with you, meaning dealing with issues and other things will be much easier.
