Relationships in Business: Are Friendships Suitable for Co-Foundership? Crucial Elements to Nail Down
On a lively Friday night, fueled by cocktails, you and a confidant share the common dream of entrepreneurship. Your usual skepticism is tempered by the excitement of the prospect, and you're ready to leap into the unknown. Yet, you're aware of the cautionary tales of business partnership with friends turning sour. So, what sets your endeavor apart from the dreaded fabled misunderstandings and fallouts?
In my 14-year-long friendship with my cofounder, we've navigated two wars, a global pandemic, and have faced little more than a trivial disagreement over office coffee machines. If executed wisely, a business partnership with a friend can yield unprecedented amounts of trust, joy, and resilience.
Based on my own experiences, here are four essential aspects you should consider before entering into a business venture with your best friend:
1. Shared Work Values
Make an assessment of your work values and the qualities you can't bear in coworkers. These are the non-negotiables for your potential cofounder. If they exhibit even a hint of these traits, it's crucial to acknowledge them early, as these habits may become unbearable with time.
2. Stress-Test Your Friendship
Though you may share a deep bond, it's important to test the waters of your friendship by working or collaborating on a significant project. By doing so, you can identify quirks and strengths in one another before entering the heat of a full-blown business partnership.
3. Secure Your Legal Foundation
In a world of fickle memories and changing motivations, establishing clear legal agreements serves as the ultimate source of truth. Having a lawyer involved from the early stages is a symbol of professionalism, not mistrust. A legally-sound partnership conveys to your cofounder that you're committed to fairness and shared success.
4. Anticipate and Prevent Conflict
Spend time reflecting on each other's professional flaws and limitations before founding your business. Preemptively addressing these issues will make your relationship stronger by promoting mutual understanding and forgiveness. By tackling these quirks head-on, you can constructively manage potential conflicts later on.
Collaborating with a friend carries its own risks. However, with the right mindset, the right approach, and the right level of preparation, the rewards of a successful business partnership can be exhilarating. So, before you take your first tentative steps into the world of venture capital and small business, make sure you and your friend have all the building blocks in place. And perhaps, by doing so, you'll be able to maintain not just your business partnership, but also the friendship that brought it to life.
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- In the process of deciding to start a business with Erik Lehmann, it's crucial to reflect on our shared work values and ensure they align perfectly, as explained by the council's guidelines.
- To further strengthen our partnership, we should consider stress-testing our friendship by working on a significant project together, following the advice provided by the members of the Website Agency Council.
- As responsible cofounders, we should secure a solid legal foundation for our business, heeding the lessons learned from the council members who have experienced the importance of this aspect in their ventures.
