Should you hire or go into business with your friends?
John D. Rockefeller once said that “a friendship founded on business is a good deal, better than a business founded on friendship.”
Statistics on how many people decide to go into business with their friends are hard to confirm, but it is said to be one of the most popular ways individuals start businesses. While 3 out of 4 small businesses are sole proprietorships, thousands of partnerships are formed every year in the United States alone and many of them are created and run by friends. It is estimated that about half of all startups today are organized among friends or spouses.
According to the New York Times, there is a fine balance needed to both make a business succeed and retain a friendship. Three principles for making it work are to overcommunicate; lay out specific roles and responsibilities; and know when to turn business and friendship on and off. Another suggestions is to completely separate the Business Management with Operation of the Business when deciding what your roles will be.
Friendships and work do not always mix. If you have a business of your own and decide to hire your friends, make sure you set clear boundaries. Set expectations before you hire them and make sure they are comfortable with this arrangement. It is difficult to mix close friendships and business. One will always affect the other.
Should you hire or go into business with your friends? Would you do it? Post your comments!
Statistics on how many people decide to go into business with their friends are hard to confirm, but it is said to be one of the most popular ways individuals start businesses. While 3 out of 4 small businesses are sole proprietorships, thousands of partnerships are formed every year in the United States alone and many of them are created and run by friends. It is estimated that about half of all startups today are organized among friends or spouses.
According to the New York Times, there is a fine balance needed to both make a business succeed and retain a friendship. Three principles for making it work are to overcommunicate; lay out specific roles and responsibilities; and know when to turn business and friendship on and off. Another suggestions is to completely separate the Business Management with Operation of the Business when deciding what your roles will be.
Friendships and work do not always mix. If you have a business of your own and decide to hire your friends, make sure you set clear boundaries. Set expectations before you hire them and make sure they are comfortable with this arrangement. It is difficult to mix close friendships and business. One will always affect the other.
Should you hire or go into business with your friends? Would you do it? Post your comments!
Views: 95
Comment
-
Comment by Big Swoll on November 27, 2008 at 12:46pm -
My company, The Definition, Inc. is a company I had originally and I brought in my masonic brother and another close associate of mine in as partners. Although I am the President & CEO of the company, they have roles in the overall success of our venture. With their expertise, we haven't had any problems yet and business has been booming.
I feel that if you go into business with your friends, family, etc that before you bring them in you let them know YOUR vision of YOUR company. If they see your vision and understand that then your vision will become theirs. You can't go wrong....
-
Comment by Cost Seg Advisor on November 20, 2008 at 4:05am -
It is fine going into business with a friend....AS LONG AS....you write up partnership agreement assuming that it will NOT work.
That way all the I's are dotted and T's are crossed.
-
Comment by Demetrius on November 20, 2008 at 2:23am -
I say no,I tried that an that was the biggest mistake of my life,an it put me in a h*** im still trying to get out of.
-
Comment by trackfiends ent (prolific) on November 20, 2008 at 12:57am -
i have a business with a friend ive only known a few yrs,we get along fine..its not something i would do with all my friends,i mean like my best friend who ive known since 5 i most likely wouldn't engage in that with him,but it all depends...me and my partner play our part and everything has worked fine the last 3yrs
-
Comment by mais316 on November 20, 2008 at 12:04am -
Don't go into business with friends or family. You nee to have total control and influence. Also, this will prevent messy business breakups
goodcoin.weebly.com
-
Comment by Ms45 on November 19, 2008 at 10:32pm -
No. I've heard of many friendships breaking up because of that very thing. It's almost the same principle as letting your friend move into your place. If you want to remain friends, it's probably not a good idea.
-
Comment by Karmeta Mosley on November 19, 2008 at 10:09pm -
I think its a great idea. My friends hold me accountable more than anyone else that I know! They EXPECT more of me which pushes me to excel to the next level. No one wants to be a failure so I think its a great way to success!
-
Comment by cookiek on November 19, 2008 at 9:38pm -
That can be a good thing. If it blows up in your face, then you've probably lost a good friend forever. I think business with good firends is like business with family, don't mix the two.
-
Comment by Nadine - WWW.NADINEMORELAND.COM on November 19, 2008 at 9:36pm -
NO!! NO & NO!!! DO NOT DO IT!! I feel that is a BAD decision!! If you have a business that it take more then you as the owner to run it, hire somebody you dont know!!!!
-
Comment by Cyn on November 19, 2008 at 9:08pm -
I hope it works because Iam about to go into business with my husband, son, and about 5 friends. It will be multible ventures. I am believing... that because we have common goals, and we all believe in God first and foremost, that it has to be successful. We know there will be some hard times ahead, but we are ready.
© 2012 Created by MingleCity.
You need to be a member of Mingle City to add comments!
Join Mingle City