Partnerships in general have its pros and cons. But starting a partnership with a friend or close relation can be a great failure if care and planning is not taken. Many people especially the youth want to start a business with their best friend or relation because they like and trust them. But they forget that friendship is way different from being business partners. Some people can be very good at being friends but can be terrible business partners. Though there are some merits in starting such a partnership such as trust between partners and better communication as a result of familiarity. I will advice that you don’t venture into such a business partnership and if you do, thread with caution;
PERSONAL ISSUES WILL AFFECT BUSINESS
Friendships and blood relationships come with a lot of emotions attached. If you have a good friend or blood relation, you always have him or her at heart. The good things always make you happy and when he or she does anything to hurt you, it hurts more. Therefore when you start a business with such a person and you even get non business related issues, it will bring some separations between both of you and that will affect the business drastically. There will be less or no communication and the running of the business together will slow down. This can cause a total breakdown of the business.
DIFFICULTY IN SHARING ROLES AMONGS EACH OTHER
Most at times, your close friends are mostly your age mates and play mates so mostly there is no respect between yourselves. You see yourselves as equals and no one wants the other to order him or her around. Therefore, when you start a business with friends or relatives, that same equality will be felt and it will be very difficult to giveorders to the other or assign a duty to the partner without reluctance creeping in. It can make him or her feel like you are trying to boss over him or her. This will bring quarrels and unrest between partners and will affect the flow of work.
FUN OVER WORK
When friends and blood relations start a business partnership, the tendency of using working hours to indulge in non business related chats and jokes is very high. It will be very difficult to separate chats you have as friends when you are not working from working hours. When you engage in such conversations during working hours, it will cause lack of concentration and will affect productivity. Total concentration is needed to achieve business objectives. Such unnecessary chats may cause time wastage.
YOUR SENSE OF BUSINESS MAY NOT BE COMPATIBLE
You and your friends may be very compatible in many ways and have a lot of things in common but may have deferring views and ideologies when it comes to doing business. Your approaches to business issues may differ. Your ideas and decisions may equally be at par. This can bring about lots of conflicts and heated arguments, which can cause delayed decision makingand adversely affect the strategic direction of the business.
DISTRIBUTION OF PROFIT MAY CAUSE PROBLEMS
The insatiable nature ofman leaves us vulnerable to greed. Profit sharing can cause a lot of misunderstandings and conflicts between business partners, if the partnership agreement does not outline into detailshow profits are distributed. Often, friends who dare to partner on a business project are blinded by trust and familiarity, hence their decision to ignore partnership agreements that express the details oftheir working relationship. When the business starts to generate returns, conflicts may arise when there aren’t anyguidelines as to its distribution. This normally occurs when one party has made better monetary commitments and contributions, so feel entitled to more returns.The turmoil that may arise as a result of profit distribution can likely cause a dissolution of the partnership and an abrupt end to the friendship. It is therefore advised that partnership agreements are drafted and both parties are inconcurrence to its provisions to mitigate future conflict.
Starting a business with a close friend or close relation can be very disadvantageous, if not properly managed. I will advice strongly against it. It is very difficult to control emotions that come with friendship and business but if you think you can control it you can go ahead.