18 Jan 2007

Don't Do Business with Friends

The closer they are, the harder it can be to work together.

This applies to family members as well. And of course this is not universal, but covers a good portion cases.

When looking to get in to business it sometimes seems so easy to just pull in a friend or family member to share the load. There are a number of reasons why this seems good on the surface. You already know them, so there is no personality conflict. You already trust them, so you don’t have to build up that grace period of a new relationship. It is a lot less work up front to just have your friend help you out as you get the ball rolling on your great plan.

But with all easy routes there are some definite negatives. Because they are friends or family members, making the tough decisions that are best for the business become even harder. Now there are people’s feelings and your relationship away from the business that you are worrying about. By working with friends you run the very likely risk of upsetting those friends when you have to make sound business decisions that don’t necessarily match with their opinions.

Moral of the story? Sometimes making the hard decisions now makes your future decisions easier.