Concers About Going in Business with a Friend

[mvdheuvel1983]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

[bittraffic]

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

I'd be concerned about my friend's financial status. If he has a stable income and is responsibly taking care of his family.
Success stories are likely to be friends who have the kind of personality that is really trustworthy and the two give importance to the relationship.
 
They wouldn't be friends if they don't know each other's behavior. Friends have the same colors and feathers that's what they say but if from the beginning you already know this friend of yours will likely cheat, then it's not worth partnering a business with him.

[KingsDen]

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

I'd be concerned about my friend's financial status. If he has a stable income and is responsibly taking care of his family.
Success stories are likely to be friends who have the kind of personality that is really trustworthy and the two give importance to the relationship.
 
They wouldn't be friends if they don't know each other's behavior. Friends have the same colors and feathers that's what they say but if from the beginning you already know this friend of yours will likely cheat, then it's not worth partnering a business with him.

You guys can be very good friends and surely you must have known the character of your friend and your friend must have also known yours. So, it's fine that friends go into business because they will synergize with the same spirit and friendship and make the business successful. But what happens is that ones it comes to business, there is nothing like friendship or family, everything should be documented and agreement made in a legal form. The document should capture the responsibilities and the sharing of profits. Every thing should be spelt out correctly before you start business with your friend, or even your brother. That understanding that relationship is different from business will keep the business going.
If you go into business with your friendly blindly, there must be some problems in the future, either from you or your friend or relatives.

[royalfestus]

Treat business as business irrespective of relationship. Choosing the right partners for your business is crucial. Prioritize careful selection by considering factors such as their financial stability, integrity, and alignment with your business goals. Conduct thorough due diligence on potential partners, including reviewing their financial history, creditworthiness, and business experience. It's essential to establish a legal and financial relationship, so opt for partners who are reliable and trustworthy. Avoid giving a single individual sole access to funds, particularly the bank account, to mitigate risks and ensure financial security.

[DeathAngel]

It’s difficult to mix business with pleasure aka business with friends & family. It can work but you have to lay ground rules.

Are you both going to invest the same amount of money at start up?
Who is going to make final decisions?
Can you both solve problems?
What happens if you disagree on something important?

It can work but you are going to need to separate business & friendship in the workplace. 

[Fortify]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

Like many things in life, stress, greed or close proximity can bring out traits in people that you have never seen before. You better be damn sure that you know the person you're going into business with very well, even then it is liable to end up in disaster. There have been circumstances where it has worked for people in the past, it takes a very narrow set of the right ingredients, but what you don't hear about as much as the many failures and falling outs that have occurred. Disputes about money or whether people are contributing the same non-monetary inputs can put huge strains on relationships, so you'd probably be better off not going into business with people that you really want to remain close to.

[South Park]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

I have always thought that starting a business with a friend is a bad idea, in theory everything should be about being as efficient as possible and increase your profits margin, but when friendship is on the way things are never that simple as now you have to care about how the other person may take your criticism regarding something they did wrong, considerations you will never have to take were that person be a stranger which you just hired to do a job for you.

[SOKO-DEKE]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

As you have said their many people that do join business with their friends and both due succeed  without betraying each other and are also many to that did and betrayed. we should know that all human beings cannot have perfect mind and with that they can't be all truthful.but all it requires is trust, once you are able to study your friend well and found he/she with truthful character and you believe it will be very hard for someone to convince he/she away from the truth line,why will I be afraid of doing business with such person?as for me i believe much about many friends I have because their character toward make me, make me believe much in them that they can't betrayed me on any way but they may surely be some among them that may have bad mind ooo but I never witness that habit from them any of them because I don't make much friends and even before we agree on any business there are will be agreements between both of us.some people say trust nobody, but we need to trust some one in order to make some our ways easier.

[Captain Corporate]

Don't, don't ever do it. I have done it multiple times in my life and its always a hard work. Its not even about the money part, and yeah money part could be a problem too I have heard stories but mine was not about money. Mine was about the fact that he was too hyped and too dreamy and that is why it failed. This happened about 10 years ago or so when I was a lot more younger and obviously a lot less experienced, but when we started it, it was a simple idea that couldn't really go anywhere, and yet he believed that we could start there and make it to the top, like literally dreaming to become a billionaire one day. Its great to feel like that and work hard, but he was lazy at the same time and focused too much into the future and not about today. Which meant that he lacked working today, and always dreamed about whats to come, which ended up resulting with us losing what we have, and not have a better future at all.

[ajiz138]

Sometimes when a business has been running for a long time from one of them there is always someone who cheats with his dirty deeds, (I'm not saying all of this) indeed because I have experienced when running a business with a friend that initially went well but after a few years he taking actions that are not transparent to the point of making higher profits compared to others, this makes us no longer trust and I decide to leave with the initial capital and some income that must be shared with several people, because I run a business with 3 people.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

If you find an honest friend then the business will be successful and growing, but if this is your concern then just don't do it again because they always have bad intentions in the future so this will still be your worry too.

I prefer to do my own business in the sense that those involved are family or relatives who can be fully trusted.

[Hyphen(-)]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

If it's a joint business with different signatories, I don't think only one person has the right to run with the entire company's money without the other person's signature, or is it a physical business where only one person is in charge of keeping the company's money?

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

Every advantage has a disadvantage; some businesses succeeded through partnerships with friends and family, while others failed due to a lack of trust.

Trust is the most important issue that is causing problems in various businesses, which is why it is important to have a signed agreement with a lawyer to avoid trust issues in a business so that it ends well.

[Smartvirus]

I'd be concerned about my friend's financial status. If he has a stable income and is responsibly taking care of his family.

To some extent, this sums it all but, its one sided. It only centers on the chances that your friend won't run away with company funds but, don't say much about managing or running a business.

Though, it is important that, one have a steady cash flow so as to be able to separate himself from the business. We know business is a separate entity of its own, it ought to take care of itself while, you can benefit from the profits it generates after settling all that need be in running the business, encroaching would lead to some gradual decline for sure.

But again, before going into a partnership business with anyone, it must be someone you've really known all about and your sure could separate himself from the business. That's just how your likely to have a successful business and you shouldn't leave all the managing to your partner. The business should operate a double signatory account and ensure you get mails on happenings within the business and finance.

[arimamib]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

If friends have been entrusted as a whole in building a business, then absolutely no worries will arise in our hearts, I mean if this decision is unanimous, of course we have thought carefully about what we will receive. There doesn't have to be a negative side in our minds towards colleagues, where we have to trust each other in order to create a form of harmony in building a business.

In this option, there are indeed many that we meet out there where the closest friends can destroy you and this is certainly based on several factors, most likely there is no equal distribution when the company gets profits, even when it loses, we blame him as an actor in the company's failure. That should not happen in building a business, everything must be in accordance with whatever results are recorded each year.

[dothebeats]

Have him write a contract. This is the only way to not get screwed IMO. Most of the time, these people who breaches agremeents are brave because they know they wouldn't be held accountable if they are to run with the money. They might face some jail time but the gravity of their actions aren't that severe because they didn't sign any formal agreement or any contract that would pin them even further.

Do not trust anyone fully. Learn to not give them everything and in one go. Let them earn your trust, and if that trust is not earned, don't commit 100% to whatever proposal they might give out.

[Hypnosis00]

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

You should also know his lifestyle and how it changes when you are in business together because this will also affect how he manages his finances and it is possible that he/she touches the company's money once got compromised. Because it happens that many business partners got broke due to uncountable expenses that is why it is very important you are also transparent with each other. And I will tell you that it was hard to communicate with someone, your partner when he/she hides something. A reason why we should choose our business partners so well is not just to be a friend but kinda being like a family so you were open to each other and communicate properly.

[irhact]

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

A friend who's going to be a bad business partner, the signs are always there from the beginning but we always ignore those bad character and think they'll change or give them a second chance since they're friends. You have to observe your friend to see if he's the greedy or impatient type because this aren't good business partners and they'll be difficult to handle in the future.

I prefer to do business with foreigners than close friends or family members. When strangers do business, they'll respect themselves and put attention to getting that business successful without been concerned about the profits as they would had discussed that before the business started, but friends or family members will always feel they're been cheated.

[odunybiz]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

Partnering with a friend in business is something that look easy at the beginning of the business but may come with another story after the success of the business. For me I won't discourage this but both bodies should have a written document with a legal back up to give the financial running of the business. This will help in the future after the success of the business.

[AmoreJaz]

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

A friend who's going to be a bad business partner, the signs are always there from the beginning but we always ignore those bad character and think they'll change or give them a second chance since they're friends. You have to observe your friend to see if he's the greedy or impatient type because this aren't good business partners and they'll be difficult to handle in the future.

I prefer to do business with foreigners than close friends or family members. When strangers do business, they'll respect themselves and put attention to getting that business successful without been concerned about the profits as they would had discussed that before the business started, but friends or family members will always feel they're been cheated.

that is correct! look for warning signals and possible reasons why he might do something foolish down the the road. as a friend, you already know some of his weaknesses and strengths. but if you failed to see it and you're already running your business. and that's when he showed up some red flags, confront it right away, don't wait too long or before it's too late. better be frank about what you are seeing rather than regret later on and you can't revive the business anymore. i can compare this with running a business with your family. sometimes you won't address the obvious problem because you're a family.

[goldkingcoiner]

Many years ago, I heard the story of a man whose business partner did dirty. They were business partners for almost 5 years and the suddenly the business partner left with company's money. Even after several years, this man didn't recovered. He ended up sounding it as a warning to his kids never to go into business with anyone. The trust was destroyed and never recovered. This is just one of those sad stories.

On the other hand, there are many success stories of friends who went into business together and succeeded to together. If you have ever gone into business with a friend, what were your biggest concerns and how did work through it.

I think that there are times when things do not go the way we want to. This leaves a bad impression on us and a deep scar, which is why the man from your story will find it very hard to trust anyone ever again. But that does not mean that going into business with a partner is a bad thing. It only matters to him because of his own bias against partnerships.

Obviously there is a difference between trust and blind trust. They are not the same thing. Nobody should trust blindly. But without trust, there is no cooperation and no point in any business, because anyone can screw you over. Not only your partner.

Statistically, most partners do not do this to each other. The guy was just very unlucky that it happened to him.

I would not take his story as fact on the matter.

[Unbunplease]

Business with a friend is complicated by the fact that one initially trusts the friend. But that friend may end up being false, jealous, or lacking the right business qualities. Or circumstances may arise when the friend, without wishing it, will be forced to betray (due to financial circumstances or under threats).