Such businesses are a huge contributor to any economy.
Globally, between 70 and 80% of firms are co-owned or co-managed byfamilyorfriends.
Close relations can be a great source of support andpositive influenceon a new idea or business.
Myresearch, focusing on new business development within universities, shows that friends can be successful business partners.
For students especially, entrepreneurial colleges anduniversitiesoffer a range ofsupportfor friends to realize business dreams.
With this in mind, turning an existing relationship into a business relationship can be easily done.
The pitfalls
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A business involving family or friends can seriously disrupt work-life balance which iscritical to business success.
Its not realistic or healthy to talk about work all the time.
Without proper care, these issues can become commonplace.
As happens inSuccession, personality battles and power grabs can distract from productivity and threaten to derail the venture.
Protecting yourself and your business
Before getting started, its important toplan ahead.
This should include creating a strategy for business partners to amicably exit the firm when necessary.
Transparency what are everyones plans?
What brought you all to this potentialstartup?
What do you wish to achieve?
These are questions you should ask.
Even with friends, this isnt an opportunity to simply hang out and have fun.
Yes, you must enjoy your work, but time, money and livelihoods are at stake.
Be kind appreciate and consider life changes
Like the volatility of business, our lives can change instantly.
