I should've listened to my dad...

**JasonY01** · 02-24-2006 07:32 PM

Put it simply I went into business with 2 other friends and did nothing wrong, but now the other two am no longer speaking to me. I knew I should've listened to my dad who warned me about this. Just wondering if anyone else has any horror stories about going into business with their friends.

**Jeff** · 02-25-2006 01:56 AM

Yup, went into business with a friend alittle bit a go. things got sour, and we dont really talk much anymore.

I now dont get my friends involved with my business ventures.

-Jeff

**Steve** · 02-26-2006 03:27 PM

We've all seen it time and time again.
Too bad we STILL don't know better!

**wajo** · 02-27-2006 05:43 AM

I think a lot of people go through it ..

**gambit** · 02-27-2006 09:31 AM

I've been there also. Lesson learned: Never do business with family and friends.

**Wowzerz** · 02-27-2006 02:55 PM

Originally Posted by gambit

I've been there also. Lesson learned: Never do business with family and friends.

I don't agree with this...just make sure there is a clear understanding in the beginning and make it a formal business venture - a handshake or comment in passing is not good enough just because you trust eachother and you're "friends". From the get go it has to be done properly.

**CyberP** · 03-01-2006 05:08 PM

Edited for personal reasons

**akula** · 03-01-2006 06:52 PM

Originally Posted by JasonY01

Put it simply I went into business with 2 other friends and did nothing wrong, but now the other two am no longer speaking to me. I knew I should've listened to my dad who warned me about this. Just wondering if anyone else has any horror stories about going into business with their friends.

No, I disagree. The closer the better.

These breakups only happen because (for some absolutely unfathomable reason) people care about money, saving face and being right.

Silly humans.

Friendhips/family has nothing to do with it. If people continue to be primitive in the way they relate to other people - relationships are gonna break up regardless of context.

**BuezaWebDev** · 03-02-2006 03:14 AM

It's the amount of responsibility and effort that it takes to create a successful business that causes people to jump ship. I agree with you all in regards to people only caring about money.

I can assume that a business based on a partnership is definitely not the way to go for a young entrepreneur--it's just the fact that a lot of young entrepreneurs are too naive to realize what they're getting themselves into. But then again, people learn from their mistakes.

Would sole proprietorship be the safest route for a young entrepreneur? I understand that business is about taking some risk to seize opportunities, but is it worth it?

**gambit** · 03-02-2006 02:22 PM

Hey Akula,

Why don't you share about your business success because of partnership with friends and family.

Originally Posted by akula

No, I disagree. The closer the better.

These breakups only happen because (for some absolutely unfathomable reason) people care about money, saving face and being right.

Silly humans.

Friendhips/family has nothing to do with it. If people continue to be primitive in the way they relate to other people - relationships are gonna break up regardless of context.

**Day2** · 03-03-2006 04:29 PM

I started my consulting biz 10 years ago with my best friend. My brother bought in as a partner 4 or 5 years later. Last year, I sold my shares and went into the VC biz.

Still quite close with the friend and the brother.

Partnerships are like marriages (with a similar percentage of them ending up with the parties hating each other). That being said, I think it's important to have partners that you know very well and respect (just like a marriage).

The less you know about your partner and care about their interests/concerns, the more likely you are to fail, I would think.

There are clear advantages to going into business with friends. If all parties are responsible and duty-driven, they will strive to hold up their end of the bargain, and will value the relationship more than a non-friend. There is more "on-the-line" than if there isn't a friendship there, so people will generally work harder to keep the relationship healthy.

The obvious disadvantage is that if things go south, it could cost you a friendship.

If you're pondering partnership with someone you're friends with, think about how they talk about their ex-girlfriends. If they speak well of them, still respect them, and are happy to be friends with them, they are likely a good bet. If they have a trail of burned bridges behind 'em, find a different partner.

Another good exercise is to draw up a partnership agreement with a buy/sell clause. A) It protects you if things go south and B) If you can't work through that, they you probably aren't cut out for partnership.

**Day2** · 03-03-2006 04:31 PM

Originally Posted by JasonY01

Put it simply I went into business with 2 other friends and did nothing wrong, but now the other two am no longer speaking to me. I knew I should've listened to my dad who warned me about this. Just wondering if anyone else has any horror stories about going into business with their friends.

Oh, yeah. And if you think you didn't do anything wrong, you probably ought to look a bit harder. EVERYONE does something wrong. Your job as a partner is to understand the viewpoint of your partners... That's at least ONE thing you did wrong.

**ppanwar** · 03-07-2006 09:06 PM

I believe that there is no problem in doing business with family and friends. But having said that, 90% of the cases where people have worked with their friends/families, it has led to problem.

**Aizen** · 03-07-2006 11:12 PM

Perhaps because people who are related/close have a harder time dealing with business-related conflicts because not only will it be a financial problem, it will also affect their personal relationship...

I find it hard to confront/reprimand people who are really close to me and most of the time I just make a minimal effort to fix the problem because I'm concerned about damaging our close relationship.

**ppanwar** · 03-08-2006 02:32 PM

Originally Posted by Aizen

Perhaps because people who are related/close have a harder time dealing with business-related conflicts because not only will it be a financial problem, it will also affect their personal relationship...

I find it hard to confront/reprimand people who are really close to me and most of the time I just make a minimal effort to fix the problem because I'm concerned about damaging our close relationship.

Completely agree. The reason is you don't want to upset them and ruin your relationship.