Starting a business with family and friends may seem like a great idea. After all, you already like each other and this can combine work time with quality time. However, this type of venture is not without risk and you should keep in mind that keeping things smooth on the business and personal fronts may take a bit of work. Here are some tips for joining a partnership with family:
Define Roles but Stay Off the High Horse: Each person will have a different role in the company based on their background, as well as a different title. However, don’t let a title make you feel like your opinion is somehow more or less than that of your friend or family member. Titles should be a formality and decisions should be made through reasonable discussion. If you do not think that you can have reasonable discussions with that family member, starting a business with them is not a great idea.
Do the Big Things Together: Major company starting steps should be done as a group. Not only does this ensure that everyone has a say, but it is a memory. For instance, if you need to apply for an EIN online, gather everyone in an office while you are doing that online EIN application. You’ll need pertinent business information for the application and the online EIN submission process is generally fast and easy.
Establish Open Dialogue: Get into the habit of creating an open dialogue with your friend or family about your concerns or ideas. Being able to speak to each other without worry of hurt feelings will be key to a successful business. If your potential business partner has a fragile ego, starting a business together may be risky for your relationship and your new company.
While there are important things to consider when going into business with friends and family, the venture can definitely work in your favor if you know how to work together.