Starting a business is exciting. Starting a business with your best friend? That sounds like a dream come true! You already have trust, shared experiences, and an easy rapport. But before you jump into business together, it’s important to remember that friendship and business aren’t always the same thing—and blending them can be both a blessing and a challenge.
Here’s a closer look at what you need to know before diving into the entrepreneurial world with your friend by your side.
First things first: communication is key. You might think you know your friend inside out, but when it comes to business, you’re entering a whole new arena. Be honest about expectations from day one. Set clear boundaries, talk openly about your goals, and have frank discussions about what success looks like for each of you. Most importantly, discuss what happens if things don’t go as planned. Will you both still feel the same way about the business and, more critically, about each other? If you’re not on the same page from the start, small issues can snowball into major conflicts down the road.
Another crucial factor is defining roles. Just because you’re best friends doesn’t mean you’ll naturally fall into the same business roles. Who’s in charge of what? You might be great at sales while your friend excels at operations. Assign specific tasks and responsibilities based on strengths—not on who’s been friends the longest. This not only prevents confusion but also ensures you’re both contributing to the business in meaningful ways.
Money, as we all know, can make or break a business—and a friendship. Before you launch, have the uncomfortable conversation about finances. Who’s investing what? How will profits be divided? What happens if one of you needs to take more out of the business than the other? Formalize everything with contracts, even if it feels awkward. Putting things in writing protects both of you and takes the pressure off having to navigate tough conversations later. A solid agreement is the best way to keep your friendship intact while handling the realities of money.
Disagreements will happen, and that’s okay. The key is how you handle them. In business, you’re bound to have different opinions about the best course of action. Don’t take it personally, and don’t let a business argument bleed into your friendship. When conflicts arise, approach them professionally. Take a step back and remember that the success of the business is the priority. If you can’t reach a resolution on your own, consider bringing in a neutral third party to help mediate. You don’t want a minor dispute to drive a wedge between you two.
One of the biggest perks of starting a business with a friend is the shared passion and trust. You already have a foundation of support, and you know each other’s strengths and weaknesses. This can be a huge advantage when it comes to problem-solving and facing challenges together. Plus, working with someone you genuinely like makes the highs of business even higher—and the lows more bearable. Just be sure to nurture the friendship as much as you nurture the business. Set aside time to hang out without talking shop. Maintaining that balance is key to keeping both your personal and professional relationship healthy.
But be realistic: starting a business with a friend isn’t always smooth sailing. The pressure of running a business can reveal differences in work styles, decision-making approaches, or commitment levels. Sometimes, the person who was a perfect fit as a friend isn’t quite as compatible as a business partner. That doesn’t mean your business (or your friendship) is doomed, but it does mean you need to be prepared for the possibility that things won’t go exactly as planned.
At the end of the day, starting a business with a friend can be an incredibly rewarding experience. You’re building something from the ground up with someone you trust and care about, which is priceless. But to protect both the business and the friendship, approach it with the same care and professionalism you would if you were partnering with a stranger. Set boundaries, communicate clearly, and always keep the friendship at the heart of the equation. When done right, you and your friend can thrive in both business and life, creating success stories that last a lifetime.
