Topic: Concers About Going in Business with a Friend - page 7. (Read 1024 times)

Neither of these things neither failed, have huge issues in between owners, having some financial issues, trust issues and other possible issues that had been mold up which is something that not shocking anymore.
This is why its better to be a sole proprietor rather than on making up some corporation on someone unless if you do trust that friend and you do know that you would be coming into that point but somehow its impossible to know on what would be happening ahead specially when your business do suffer some issues which might mold up some questionings and debates which would lead up to more even severe problems.

This is what i dont like when having that a partner when it comes to business. It would really be giving out that peace when you are just running it alone. You could solo all the problems and you could solo
all the profits that it would be making.Yes, it might sound that selfish but if you do have the money for you to build one and run on your own, then why not?

When it comes to money then everyone is really that subjected to change, we know that human beings could be easily be changing up their mood and treatment on the time which money is the issue.
So its better to go solo to get rid of these possible problems. Having a friend isnt bad but it would really be just having those boundaries on where there are things which arent
meant to be influenced or much needed to have a corporation or partner.

I have seen many situations where a business founded by close friends failed.  When people start doing business, they need a foothold and strong support. 

Very often, people look for support in friendship, because it’s not so scary to engage in a fundamentally new type of activity when a friend you know from childhood is next to you.  However, over time, business develops and new problems arise.  A person begins to doubt ...

It begins to seem to him that his founding friend contributes less to the common cause than he does.  Sometimes the conflict is started by the spouses of friends.  In any case, everything ends sadly.  Former friends have been arguing with each other for a whole month, insulting each other ....

As a result, their common successful business ceases to exist.

Actually, a lot of business, even the recent and very famous ones have started by partnership between friends and there is nothing wrong with it, not everything needs paper immediately. If you have friends you can trust and they have skills and are capable to do their roles, then you don't need paper and lawyers immediately but once company starts growing and more and more doors open, this process will become inevitable.

I agree with you on that part. Business and business and all the matters is that everyone does the job and it's not a place where one should bring unskilled friends and family members. But I think, you should always start a business with a friend who already has enough knowledge that it won't be necessary to make it clear.

Running business with a friend is really risky, you don’t have to trust anyone when it comes to money, your friend can turn to your enemy and your family can turn against you. You might be friends for long and you guys will be cool, but immediately money is involved then his behavior might start changing, then you will get to know the kind of person he is. If anyone is going to run a business, then I will recommend you run it alone, even if you are going to start small, then with time you can be growing it gradually.

In business, everything should be formal. You don't start a partnership with your friend or relative without a legal agreement. You should consult a lawyer that will draft all the legal document that establishes the partnership. If you start and run a business based on trust or an informal relationship, you might regret your actions. Money should be kept in the bank in a joint account. And one individual shouldn't be the sole signatory. Withdrawals or payments should go through a financial process that upholds transparency and the safety of funds.

I once partnered with a friend in business and we treated each other like partners in the office. But after work hours we become friends To uphold financial prudence and accountability personal funds or expenses were separated from the business. The business also had rules that guided all our actions or activities. We also ensured that we didn't employ family members to avoid informal relationships in the business. We just treated everything about the business formally.

I think closing yourself off is actually a little bit difficult to do.
Saying things like that to your children could have an impact on their future regarding doing business because this is just like self-limitation not to trust anyone, which in fact can be a little misleading because healthy business people actually need other people to serve as a good partnership. intended to advance the business being carried out.

There are many ways that can be done in conditions like this.
Choosing a healthy environment and different business treatment between personal and business needs must be realized so that things like this can be minimized.

Indeed, in this case vigilance is the most important thing, but when we cannot trust people from the start, then how do we establish a cooperative relationship in it because indeed when doing something like that, of course there must be an element of trust from both parties
Conversely, failure is not a good reason to close yourself off like that. Indeed, we can still do business independently, but it would be great if there were other people who became partners so that it would not overwhelm us in that regard, it's just that our selection must be more selective.

The sad part is that everyone talks about how it could make money and it may not be equal but the reality is that if you go into business with a friend and they are not great people then you will end up with losing more money than you earn. I have seen too many people that got together, one side worked hard while the other side just took money out and they bankrupted after the hard working one didn't want to keep it going.

Why would you work harder than your partner when you know in reality that you could stop and they would lose too, either work as hard as me or we are going to bankrupt is a good weapon to have. So all in all the likely result of this is not fight with a friend but more like a bankrupting the business type of thing because it can't go on for too long if one side doesn't carry their own weight in the business.

Trust is a very precious commodity. And the dignity of this faith cannot be done by everyone. Many people disrespect faith for the greed of little wealth. We have many friends around us who just take advantage of our opportunities. And when they are benefited by us, they don't want us to remember that benefit.

But there is one such incident in my life but I don't know if it is business oriented or not. I needed to borrow some money from a friend of mine. When I borrow money from him, he lends me some money in local currency of our country.  Suddenly the value of the dollar in our country increased and when I asked him to pay his debt he refused to accept money in our country's local currency. As the dollar appreciates, he demands his loan from me in the context of the current dollar value, taking into account the dollar value of the time he gave the loan to me. And he stood by me in times of danger and he was my friend, thinking that money should not cause distance between us, so I paid him as he demanded.  Whereas in the current context I have to pay him much more.

A friend can be a trusted business partner, but a business partner cannot be a trusted friend. So one needs to know the difference, and it's not really difficult to know if a person is trustworthy or not, unless they are too with of an actor that they would never let you guess that they have vicious thoughts in their mind regarding the business.

If I have a friend and we discuss starting a business together, we would probably know each other well and understand that none of us will deceive the other if we become business partners, and that is the most important thing, to evaluate and understand the person before you get into business with them.

When it comes to selecting a business partner,you should be very careful with the friend that you want to go into business with. Some are cheats and dubious but you wouldn't know this because they have bought your trust over with their good behavior and care towards you. Money can destroy a good relationship forever because of greed.

Don't do business with a friend that loves money and is hard heartened, someone who is desperate to make money and greedy,no matter how much he has,he will never be satisfied. First figure out your friend who he is by asking from his closed ones if he is greedy or not and how he behaves towards money, especially the money that is not his but was entrusted to him.

I have fallen a victim for my friend in the university, we were close and we do everything together. We had this business together that he will always give me some percentage from the profits but he ran away to somewhere far that I couldn't reach him and ate all the money alone. Nemeses will always caught up with the wicked because I am doing better than him presently. It was after he ran away that I started gathering some information about him and his characters, that was when I learnt that he is a greedy and not worthy to be trusted with money from his siblings.

Strongly agree, the business system has no family relationships, friends and other relatives, if you mismanage your business due to the influence of some of the factors above it will have a bad impact on your business, every business must have regulations for all employees/staff without exception, anyone who violates will be subject to a reprimand and dismissal so that disciplined employees against regulations have been established, we must focus on the work of business planning so there are no other influences that can potentially damage business success.

Businesses are very beneficial and they provide good sum of money but if they are are true to participate in. I think that one should start a business with his own money because in partnership sometimes there happens a clashes due to different thoughts and now a days trust on anyone is not easy may be it's a friend or relative.

So it is important to just keep going on with your own money so you will have own control on your money and you will be free to take any decision instead of blaming others when the situation becomes hard.

It doesn't matter how long the two of them have worked together even though it has been 5 or 10 years, but if you are a big advantage that has the opportunity to take it, then it doesn't rule out malicious intent. Moreover, driven by a need. In business there is no such thing as friends because business is still business, it has a structure and management that is planned and must be done legally on paper and to anticipate something like this happening so that legal action can be taken with strong evidence.

This is where the role of the business system works, the consequences of the rules need to be implemented properly. Don't just because he's a close friend doesn't mean rules can be set aside. Remember it's about business, and if you're one, you already know what needs to be done.

Yes, friends can be a great opportunity to share visions and build something special together. However, it can also be risky, as personal relationships can complicate matters and another concern is the potential for damage to personal relationships if business does not go according to plan. It's important to be realistic about potential risks and have a plan for dealing with any setbacks.

And one more assumption I have is that one of the biggest worries when starting a business with friends is the potential for disagreement and conflict. Well, the solution as you describe is to establish clear communication and expectations from the start, and be willing to compromise and work out any issues that arise and have a solid partnership agreement outlining everyone's roles, responsibilities and financial arrangements for example notarized so no disputes in the future.

Nobody can know our friends more than us, because despite the fact that they always say money changes people, we all at least know those our friends who are responsible, reckless, hardworking and productive at work, which are very important criteria to consider before bringing up a damn for business partnership. Because I know how painful it could be to be hurt by someone you least expected it from, and on that note, I will like to advise that whoever wishes to do a business partnership with anybody, such person must be someone you know to the core (i.e the person's house address, siblings & parents), so that if by mistake he runs away, you could track him through his parents.

I won't say I have been in a business with a friend but we did collaborate with each other to complete a certain task(I can't tell the date), and during that time I got to realize that no matter how close you may be with someone when it comes to business or anything that has to do with your finances or businesses it's best you let go of your emotions as they can hinder the way you think; for example if collaborate/partner with a stranger, the way you'll do your things will be very different from the way you'll behave with your friend. With that stranger, you'll want to work professionally so that you could capture his attention but it won't be the same with your friend.

As per the finance part with my friend,  I am someone who tends to have trust issues when it comes to me and someone handling money perhaps it was due to a past incident I had that almost destroyed my life. But currently, I don't think I have any friends that are going to run away with my money due to their current financial status but that doesn't mean I won't keep my guard up since you never can tell what's running through the mind of an individual.

One bad apple? Shouldn't spoil the bunch, folks. But let's be real – it leaves a mark. Trust? Fragile, like a priceless antique. Once shattered, tough to mend.

On the flip side, partnerships? A gold mine, when they click. Find that kindred spirit, with your values, vision, and goal-hungry mindset. Like a match made in heaven.

Do the legwork, folks. Scope out potential partners, don't dive in blind. It's not reckless trust, but a savvy choice. Shared values, mutual dreams, and synergy – that's the secret sauce.

Yes, having a family business partner will have a more negative impact on business, especially if the person does not have a professional attitude at work and always mixes family relationships with business.
This means that the business partners are at the lower level of the ranking compared to us, but what if starting a business is done together and at the beginning of the story they have a commitment to mutual openness and have their own key in every access to business management and money management, we may not be able to avoid that. if he really is playing foul.
That should be the case if you are able to stand alone and manage your own business, of course that is the best choice.

Yes, I agree that ensuring our cooperation partners from the start is something that needs to be done so that we can have guarantees from their backgrounds and identities, even if we play dirty, we can still discuss it with their families.
or another option we make certain commitments in terms of fraud and provide sanctions to those who violate it, that may be a good option as well to prevent it.

Things like that are things that often happen in large financial management matters that are meant to work together as business partners. Of course, in this case we have to be good at assessing a person's character before being made a business partner, it will help avoid fraudulent activities like that. I myself have had bad experiences with this. The incident is almost the same, namely taking the company's money away, causing bankruptcy in the business we run, it made a big hit in my business journey, from there I learned to understand how to understand a business partner and everything about him, both from his family lineage, character and mindset, it made my cooperation after the previous incident better.
As for the things that trigger conflicts to occur, you must have a mature and wise mindset, especially the problem of money because it is very sensitive.

Having a friend as a business partner is still better than having a family member as a partner, like a brother or an uncle. Businesses are not supposed to be mixed with friends matters and family matters if can be avoided, it only brings drama and excess of in fighting if the relationships are not good.

In the case of a friend, I think it would depend on the person, I would never fully trust him, though. I would make sure he does not have complete access to the money so he cannot run away with it. But rather He would have parcial access to the funds. That is a good application for wallets with multisignature, I am sure there must be also some FIAT equivalent of it.

If possible, go into business alone, even if you think it is harder, you could have a bit of freedom on choices and more responsibility.