As long as I could remember, I’ve always wanted to be the boss. I aspired to set my own schedule, create jobs and become an innovator in my respective industry. Although I think I’m pretty talented and possess business acumen, I am a firm believer that a business or project can thrive better when there are multiple minds involved. And since I have been open to having business partners, I have gravitated toward people that I like and trust the most: my friends.
To date, I have formed four businesses with friends (technically only three of them were formed as an LLC) and two of them failed. I’m sure most people would say that doing business with friends and family is a huge “no-no.” But who better to do business with than the people you actually like hanging out with? After all, one of the perks of entrepreneurship is choosing whom you work with and loving it, right?
While I don’t regret my past choices, I have found a few significant reasons why mixing business and your personal life together might not be the best move.
The lines are blurred
I admit that this has been my issue. Whenever I’m focused on completing goals by their deadlines, I am extremely focused. So when it’s time to discuss updates or next steps with my business partner, a.k.a. my friend, I jump straight into work-related items. I assume that a normal “Hey, what’s up?” to start the conversation suffices, but in those few seconds I forget that I am actually really close with this person and that our pleasantries should be in more detail. What I mean by that is that a brief discussion about our kids or day should take place.
This doesn’t solely ruin your bond but it can slowly deteriorate the enjoyment obtained from hanging out with one another that was aplenty before working together.
It can get emotional
You might have thick skin, but if your BFF really gives you sh-t for something you did, did not do or should have done regarding your business, your feelings might get hurt. And in an effort to not hurt your friend’s feelings, you might find yourself holding back on any direct criticism. This is a struggle because it causes you to refrain from being forthcoming in the effort to practice tact. And on the contrary, if you call your business partner out about certain business decisions in a less than tactful way, it can create a rift.
If the business ends, the friendship will end
Remember the two failed businesses that I mentioned? Yeah, well, in one case, our business died along with our friendship a year ago (for the record, our friendship ended first). Oh, and then there’s that one “business transaction” I did with a former roommate who became a tenant in my house. One year later, I’m still suing her for a hefty amount in past due rent and late charges and awaiting compensation. Now, if the friendship ends but you want to salvage the company, it can be saved if it’s in good financial standing and if one partner leaves willingly or is bought out. Since that rarely happens, it’s best to try and have everything in writing in the beginning so that there are no misconstrued ideas and/or rules pertaining to your agreement.
In a perfect world, it would make sense to be surrounded by the people that we love in all areas of our life. Friends working together not only sounds like fun, but it sounds like a surefire success. However, we set boundaries for a reason. So handle business and personal affairs with care.
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