4 tips to start a successful business with your friend
Going into business with a trusted friend can provide a strong foundation for a great business, but there are a few ways to go about the process to ensure you are on the same page as your friend. This can help your business last through the difficult times while keeping your friendship intact.
Save up money together
Every business needs money to get started, and when you and a friend are going into it together, it is a good idea to both contribute money toward startup costs. Come up with a realistic amount you will need to begin, including office space, supplies, employees, and supplies. While you may need a business loan to cover some of this amount, having each person contribute something can lower the amount you will need to borrow. One way of getting enough saved up for your business is to reduce your monthly spending through a student loan refinance. Using the right lender makes the process easy because you can finish the application in just a few minutes.
Ensuring you are compatible
Just because you are great friends does not mean you will be compatible business partners. Someone who is very excitable can be fun to be friends with, but that same quality can prevent them from making levelheaded business decisions. It is critical to be able to remain unemotional and calm while making decisions that can impact your company. There are common signs of a bad business partner and if you and your company are not compatible as partners, you might end up having a falling out that can affect the organization. It is not enough that you are good friends because you have to understand whether you can work well with that person. Part of testing the waters can include having conversations about what you each expect from the business.
Setting goals and expectations
You should ensure you are on the same page about everything related to your business. Talk about your expectations and what you each hope to get out of the endeavor. Think about whether or not you are on the same page about the important things. By clarifying your goals upfront, you can talk about whether they might be sustainable over the long term. Create a timeline that will help you meet these milestones and go over money to ensure you can make ends meet.
Avoid letting finances come between you
Money can be an issue even if you are best friends, and if you are not careful, it could ruin your friendship. While contributing some personal funds can give your company a leg up, you should treat it as business money and keep it separate from your personal money. You may have to cut down monthly expenses for a period of time while you are getting started. You can both set up a business account that you can access. If anything goes wrong, your personal money will not be linked to the business. You might set up an agreement that each person has to know before any funds are removed from the account. This provides a greater level of transparency, allowing you to trust the other person more.