Starting up a new business with friends or family may seem like a lot of fun at first, but it can actually be quite challenging. You might even compare it to entering a marriage!
The stakes are high when you mix business with friends and family, so here are a few precautionary measures you can take to avoid the common pitfalls:
Define your roles
Define the roles of each partner and know that while equal, they are not all going to be same. You have to play off the talents, strengths, personalities and availabilities of each partner. Perhaps one of you is better at customer service, while the other thrives in product development. Be aware when roles change over time. Evolution is a part of business, so when a partner grows out of their role (becomes less interested in administrative tasks and more savvy in business management, for instance), or goes through a life change (becomes a parent), be prepared to adapt.
Define your goals
Make sure you are all on the same page. There will be resentment if your levels of commitment to the business are not equal. If one entrepreneur is in it for “fun” or as a “side business” whereas the other partner really needs this new startup to thrive so that they can pay their bills, there needs to be communication about this early on in the relationship.
Don’t assume that you all want the same things: each partner needs to express what it is they want to get out of the business.
Set boundaries
Assign time for work and set aside time for your personal lives. You need to nurture your personal relationship more than ever now that you’re working together. Don’t let work seep into every aspect of your relationship and vice versa.
Keep emotion out of it
This is a tough one. It’s hard to be tough on the ones we love, particularly when business is at stake. If someone is incompetent, you need to address that. Nepotism will just cause more problems down the road. If there is some personal drama going on in the family circle, keep it out of the workplace and discuss it during “personal time.” Consider hiring a therapist or a similar professional who can help mediate your feelings and help keep the lines of communication open between partners.
Get it all in writing
It can be quite surprising to see how obstacles materialize when you sit down and write out your roles, goals, boundaries and intentions on paper. Consider getting a lawyer involved to make sure everything is covered. Don’t look at it as planning for the worst, but as a preventative measure so that everyone is operating on the same wavelength before launching a new business.
Starting a business with family and friends can put a lot of strain on relationships, but if managed correctly it can actually strengthen the ties that bond.
Need a hand with your business’ brand? Call Kim Speed at Purple Moon Creative today!
