Part I: Why have a partner and what are the pros and cons of going into business with a friend
Kaye and I consider ourselves renegade middle aged women who are fortunate to have found a creative outlet that we expect will earn us some money. We’re friends who have gone into a blogging business together. And so far it has been fun, except for one minor incident. However, when I began researching the topic all I found were dire warnings. You will lose your friend! You will lose your money! Your partner may not pull her weight! Dang! What the heck were we thinking when we went into business together? Well, we like to think we were being smart. But there is a lot to think about:
Why do you want to go into business with a partner?
If you plan on starting a business with a partner you need to figure out why. What does your potential partner bring to the table? For that matter, what do you bring to the table? There are any number of reasons to work with a partner. You have a vision which you have shared together for quite a while. You can not afford to begin the business on your own. Your partner has skill sets that complement your own skill sets. There is so much work to do that you can not do it on your own. Your potential partner has connections in the target market or to suppliers and vendors. Or maybe you just want some company in your venture.
In our case, I had an idea as to what I wanted. I knew I wanted to write a blog and I had an additional vision as to the store I want (and yes, I know there’s no store yet, but we’re just getting started). Thanks to my brother I already had a name for the business, and based on the name I had a good idea as to my logo and artwork (coming soon, too!) I figured I was a decent writer, but my computer skills are fairly limited. I turned to Kaye because she had tech skills I lacked. Finally, my day job is a sole proprietorship. I wanted a partner to keep me motivated during my off hours.
Kaye’s reaction to my suggested business was a fabulous surprise. She was more excited than I was. Not only was she on board, but at the first official meeting to plan our venture, she had drawn some artwork on the cover of her notebook that completely mirrored what I had in mind. And as she began blogging, and reviewing my work, I also discovered that she could write with a sense of humor.
Before beginning the business know the pros and cons of going into business with a friend.
a) Pros of starting a business with a friend
The most obvious pro is the expectation that you will benefit from knowing who you’re dealing with. Depending on the length of the friendship and the level of dealings, you know your friend’s strengths and weaknesses, and the strength of her character. This assumes that your friendship goes beyond mere acquaintanceship.
Again, if you know your friend well and are familiar with her other dealings, you have a greater expectation of loyalty and commitment. You will trust your friend over a stranger or acquaintance with your ideas and your finances.
b) Cons of starting a business with a friend
Sometimes you don’t know your friend as well as you think. You knew your friend as a loving friend who would do anything for you. But you didn’t know that she doesn’t know much about business, or that her work habits are poor.
Whereas you expect commitment to your shared business goals, she expects understanding of her not so great work habits because you are friends.
You may be liable for your partner’s business activities and debts rung up in the name of the business.
It is not unusual for partners to disagree. Depending on how open you and your partner are,the friendship can be a help or a hindrance. You may actually be open and frank with each other, in which case the friendship is a plus. You may have a harder time approaching a friend than an acquaintance over something that is bothering you.
And then there is the obvious: If your business relationship does not work out, you may lose a fabulous friend. Yes, the godmother of your children, your BFF, the woman who gave you her shoulder and kleenex every time a boyfriend/husband/partner done you wrong, could exit your life forever and cause awkward moments at social or family gatherings.
Enough with the dire warnings. You and your friend have some brilliant ideas that may revolutionize the world, or at least your own lives. In Part 2, I’ll blog on the important discussion you need to have with your friend. But keep in mind the following. Where would the world be if these friends hadn’t pooled their resources to pursue their dreams: the Warner brothers (OK, that’s family); Bill Gates and Paul Allen (Microsoft); Steve Jobs and Steve Wozniak (Apple); and my favorite, Ben Cohen and Jerry Greenfield (Ben and Jerry’s Homemade).
