Should You Go into Business with a Loved One
You will undoubtedly already have heard the oft-repeated cliché that you should never mix business and pleasure. Now, of course, in some specific situations, for example, dating and then settling down with a colleague, can be the best thing that could have ever happened to a person.
If you are considering going into business with a friend, family member, or even your partner, then you should most definitely continue reading.
What Type of Business is It?
Even though the proverbial bottom line when it comes to business matters is that it should always come down to the longevity of a company, not the nature of it, whether or not two friends should start a business together does depend on the industry.
For smaller, more local, and ‘friendlier’ businesses, such as a village bric-a-brac shop or a local cake store, such companies are more often than not family-run.
Are You Able to Separate the Two Relationships?
Another incredibly viable consideration is whether or not the two of you are able and, crucially, whether you will continue to be able to separate your professional and personal relationships.
Running a business will mean equally sharing financial and potentially argument-inducing commitments, such as ensuring all monetary matters regarding taxes, property rental payments, and reputable insurance from kbdinsurance.com.
Do Your Differing Skills Complement Each Other?
As a business partner, your loved one should never either be brought onboard because you want to help them out or because they show enthusiasm yet have no experience.
Just as two people who don’t know each other at all, in a business context, both skillsets and business acumen and be able to work together to maximize the results.
As starting a business requires a vast amount of patience, expertise, and different skillsets, it may well be helpful to scan the following list and ensure that at least one of you can confidently state they possess such qualities as:
- Project Management
- Perspective & Forward-Thinking
- Problem Solving
- Effective Monetary Management
- Negotiation & Communication
- Sales & Marketing Experience
Make Sure Everything is Written Down
Finally and perhaps most importantly of all, after reading through this article and consulting with professional people who know what they are talking about when it comes to business start-ups if you do decide to enter into business with a loved one, make sure absolutely everything is written down and signed before you begin.
The contract is absolutely essential, and believe it or not, it takes much more planning, discussion, and sides of the paper to develop and agree on a contract between people who know each other than between strangers.
Between you, you have to decide on the details regarding the actual ownership of the business in terms of what happens if you decide to sell and all matters relating to dispute resolution. Additionally, even though you are just starting out the company, the contract should also contain details about what happens if and when you decide to legally end the partnership.