Topic: Concers About Going in Business with a Friend - page 2. (Read 1040 times)

First-time experiences always have something to do with people's decisions, either positively or negatively. When one has a very bad partnership experience, it always gives them the belief that everyone might end up being the same, which is a very bad way of judging character.

Over to your question, I have not actually done any strong business partnerships with any friends or relatives; the only few that I have done were based on mutual agreement, which was just a simple business that doesn't actually require much trust.

If I am to actually enter into a business partnership with someone, be it family or whomever, it's always advisable to enter into a business partnership with someone with whom you have a mutual understanding, and at the same time, some form of legal agreement should be signed and sealed to enable each of them to hold on to their own part of the agreement. And when it comes to the monetary aspect, where trust is not guaranteed, one person should not be the only signatory to a business account, so that one person cannot go behind the other's back to withdraw the entire business's funds and make away with them.

For sure this one is pertaining about having a business with a friend or simply having that corporation in between both owners which same as you said which i dont really prefer nor dont like.Im aint saying

that i would really be having some trust issues but its better to avoid rather than on messing up your relationship or friendship just because of money because we cant really know that one day, there would be some sort of financial problem which would causes for those argumentation in both parties which is something that cant really be avoided if ever it do happens. So its better to run up a business on
solo mode on which you wouldnt really be minding yourself or really that depending into each other. As long you do know on what you are doing then it would really be just that fine on running a business on your own but if you do prefer on having a partner then its your call to take because this would always boils or falls down into someones preference and likings.

It is really just that there are people who are really that advanced on thinking up things ahead and this is why they would be making out some decisions early to avoid as much as they could.

I prefer partnerships in business, but the partnership I mean here is when a friend who already owns a business wants to work with my business where both can be mutually beneficial. Not in one business that is managed by two people, because if one business is managed by two or more people, surely one day there will be a commotion if there is a loss of capital money when calculating profits.

So it's better to partner by tying one business to another than putting friends into a business that we build ourselves, unless our business is already very big and really needs new people to run it. Both at the branches and at the basic location because when the business network has started to be wider and the area has been able to cover more, it will obviously require more people to be placed into the business.

I have not really gone into business with any of my friends, but when we were younger, me and one of my friend had the plan of opening a cooperative account and registering a business name, but any time we wanted to carry out this plan, some unforseen incident always took place that distracted us from the plan. But currently, I just discovered that my friend and I were just full of dreams and great expectations back then, we never had the same business intentions now, and perhaps if we had carried out those plans back then, I think we would have had some issues.

In this 21st century, people don't even go into business without signing some documents and agreements in court, which can be significant evidence should there be any bad acts committed by the two parties involved in the business. Whoever is going into business with their friend should make sure they involve a legal practitioner so that if any issues arise, they can be legally resolved.

Basically, trust is built from two directions. not only in business and friendship, but also in other matters including partnering with a spouse and everything must be based on mutual trust. openness, transparency and commitment. with a solidly built foundation, things that are not desired can be easily resolved if there are internal problems.
however if the opposite happens, what you describe in this thread is prone to happen. It's not easy to build a business together, especially with a friend. sometimes, the little things can be a hindrance. which in essence, before we build a business together, we first know the background of friends who will become partners or joint business partners. this is done, so that something undesirable does not happen. even then there is no guarantee, basically humans have an innate nature that is always selfish when situations and conditions are unfavorable.

By the way, I have experience doing business with some of my best friends. long story short, the business did not go as planned and expected. in the end, friendship is at stake. with this experience, I said it at the beginning of the post. so to build a business with friends, it takes trust to be built from two directions. if possible, it's best to avoid doing business with your closest friends. because usually, business will not run well. except, if it is run professionally.

Agreed. It is precisely in this case when doing business with friends who make the rules in business a little less workable in my opinion.
Even though we must be able to distinguish when the relationship between friends and business partners is correct, but for real conditions in the field this is precisely what becomes a little more difficult.
There is a sense of discomfort when we do that because we have more tolerance because our business partners are our own friends. But if it can be done and both parties know the boundaries then this will actually be very strong in the bond because of course trust is important, it's just that things like this will not be easy to achieve.

Since I graduated college, there were some proposals from my friends to start partnering for a business. Until now nothing turns into reality maybe because some of us are very busy, some are not willing and some of us are affected by the financial crisis.

Starting a business with friends is not really bad since we knew already our friends well, their strengths and weaknesses. But just like the story, not all of your friends are fit for business. Money changes everything friend or not. Even relatives will change because of money. In the past, I also turned down some offers from some of my friends because I know them well.

I have never done business with friends but my take is everything in this life is information, for me to enter into any business partnership with any friend there will be a consensus on everything which will be written and backed by the law. Also, anything dealing with money must be countersigned by both parties.

I think things like this can be minimized by serving portions and assignments. it doesn't mean that when you become friends in your circle of friends and co-workers, the salary must also be the same because I don't think this would make sense if it was like that.
There are several conditions such as the portion of work and position that must be distinguished so that we know that the salary we have is in accordance with the position we are capable of.
On the other hand, of course, we also have to be able to distinguish between feelings when friends and doing business because these things cannot be mixed up with one another. It would be a shame if something like this happened because not only would the business be destroyed but as you said, friendship would also be tenuous.

To start a business with a friend as partnet is a risky deal. You have to trust that person a lot, because there are many variables which can happen on the middle of the way that will impact your business negatively due to your friend: he may lose motivation, deciding to stop working and dumping all the responsabilities and debt on you, he may not fulfill your expectations regards his work on the business, he may start creating disputes with you due to the belief he isn't being fairly valued...

That is why entrepreneurs avoid partners, and stick to employees only. This way they have total autonomy over the people who work with them.

That's right, maybe at the pioneering stage the solidarity business in building a joint business went well, I did it with some of my friends who had plans to have a business, and on that day we formed a commitment to do business and divide the tasks according to their respective abilities. respectively, and it went well for two years, after starting our business we had a significant increase with a very high flow of funds. And from there, there was social jealousy because they had status in different jobs and the division of income was also different, which made internal business conflicts climax and led to the dissolution of both business partners and friendship bonds.

Your question will be answered by how financial management is carried out between the two people. You may have to trust your partner in the same business and build it together since you both have a share in the business fund. So it's natural for both of them to have access to a business account or budget, and that allows for the case above.

Businesses that are built by collaborating together in management will generally be divided when one of them is too selfish in managing finances. I have seen many examples around me where in the end the two collaborators were separated to have their own business and even compete with each other. But of course, not all of them will be like that because there are also businesses that really thrive because of good cooperation.

Doing business with friend can be the best thing but only in highs and when you two agree on things but as soon as you have a clash on opinions and differences on almost everything things go upside down and with business your friendship is also destroyed so think twice before going into that.
Sometimes you have to be stiff regarding certain matters in business so with a friend you have a comfortable friendly thing and you can't be strict with them.

This seems normal, but without us realizing that doing business with our own friends is not as easy as we think, many people think that doing business with friends will make it easier for us to manage everything with the same mindset. But not a few of them also failed to run it. The problem that always arises when doing business with friends is the feeling of awkwardness that always arises and differences of opinion that make problems sometimes difficult to solve. Loss of professional principles because it is difficult to distinguish work time from time to joke or play. Money is very sensitive, you won't know who that person is, let alone friends, sometimes even your relationship with your family can be destroyed because of money.

He would have better educated his children to make the partnership legal by signing documents, providing collateral like guarantors that would indemnify the losses incase a party didn't fulfil obligation as stated in the document. This is what is obtainable in the modern world and not to go into partnership blindly with the hope of trust carrying the long time of the business. This is a mistake on his part and he has succeded to put such fear on his heirs. These days businesses are capital intensive and you need some level of partnership or support to succeed and whichever, whether financial support or partnership is better written in black and white, duties and obligations well spelt out


Those who have succeeded have not only relied on trust but documentation of what the business is, its goals and all terms spelt out. It is a lesson and better to make legal document for businesses and not to only rely on trust.

a friend is a business friend is a business don't mix the two into one it will be very difficult for us because business is where we seek profit while friends are how we do a lot of good to him. those are two things that are mutually exclusive unless your friend is a person who supports your business without asking for any benefit from your business except your own desires.

Going into business with friends can be a challenging but rewarding experience. Some of the biggest concerns include maintaining the friendship, managing expectations and responsibilities, and handling conflicts and disagreements.

Money can indeed be the thing that makes us lose everything including close friends and even family relationships, humans will become greedy because they are tempted to live in luxury and no longer care about the value of friendship, but the interesting thing about this story is why it's too easy for friends to take all assets and there is no control from the owner.

but still it is more trusted having a business partner that is your friend because you know him well but then that again the bad side on it which will make you blind on something because you trust your partner well but as long as you dont give your 100% trust on him and also check everything and get to hands on the business for sure you'll know if he is trusted or not. Right now if you arent cautious you'll be cheated so to prevent it make sure that you have an eyes everywhere

Well having or doing a business with a friend could include a high level of trust and familiarity with each other, which i think it can lead to a better communication and collaboration. Being friends you do share similar values and goals, which can make decision-making and problem-solving much easier. On the other hand there is also potential disadvantages to doing business with a friend. Personal conflicst or disagreements could have a negatively impact the business relationship. It can be difficult to separate personal and professional relationships that can lead to tension or resentment if one partner feels like they are doing more work or contributing more to the business. If the business fails it could put a strain on the friendship.