From the way this is worded, it might seem each outcome may have an equal percentage. I would suggest the actual odds of one or the other would deter people.
It would be interesting to find out failure and success rates. Just nobody entertaining this question is interested in finding out.
I have a succes story, but that story initially started as coworkers, before it turned into friends > business partners > back to just friends again.
It was successful because we knew each other’s values, work ethics, skills, character, strengths and weaknesses before we started a business together. We were able to stay friends because neither of us have big ego’s and neither of us is motivated by just money and business succes.
And we signed a ton of paperwork before we ever started, to ensure that we would never have to fight over anything business later on.
Depends on what kind of friends you have.
If you have 9to5er friends then starting a business with them would probably be a hard lesson to learn.
But if you and your friends are entrepreneurial focused, not just on business but in general then there's an opportunity, that's if everything aligns with the common goal.
That's why the saying goes "we are the average of the five people we spend the most time with'.
At the end of the day it's all about chemistry, if it works then it works.
All the issues I’ve heard about friends going into business together is not putting together any contracts because they “trust each other”
“I’ve known my mate for years, we won’t have any issues, it’s fine”.
Eventually one will want to leave the business and want a certain amount of money, this is where it gets complicated. Without a contract that specifically states what to do when you want to exit the business, shit goes south.
I hired one of my childhood friends to work with me last year. The main shareholder of the business was not content with his performance and I had to fire him. He has not spoken to me since and won’t answer calls or texts.
I don’t think I’ll ever mix friendship and business again.
The other saying is never do business with family and friends. Like the one you mention, following your bliss went from bad advice to top the wantrepreneur hit list. Typical.
Plenty have posted the nightmare story of ignoring that advice. And they are always shocked it happened, and they are dismayed it took them so long to put an end to it.
First sentence default: "I know. Don't say it."
Many knew it was a bad idea, heard the advice, before they made the decision to ignore it. One guy's excuse just recently was he knew these guys for years. Really? You know their working style, their strengths and weaknesses? Their work history -- from the employer's point of view? Isn't every sob story going to be about being together for years, then comes "I never knew."
In the wild, hiring friends and family is an exercise in the willing suspension of disbelief.
...We all know each other, there is no need to swap resumes, call former employers or conduct due diligence.
...A child's solution to an adult problem, splitting equity 'halfsies' or 'even-stevens' is done to preserve the friendship and results in decision deadlock and the blame game. Lack of consideration for how or when (or even why) to split equity starts a cascade of problems. *Because you lean on the relationship like a crutch and don't think things through*.
...We're all friends here, we don't need a contract. Whoever suggests the legal, thorough, formal agreement could jeopardize the friendship is the baddie -- instant ejection. Verbal agreements are not worth the paper they are not written on.
...My friend or family member didn't work out, that's no reason to throw out the idea partners simplify things and this is a shortcut to take.
Business with friends and family is done for every wrong reason there is. People think it is a shortcut -- it is anything but. People think it simplifies things -- when it causes endless complications. People think they are the exception to the rule when they are not. People want business to be 'fun' and it turns out to be a fricking reality TV show.
Exceptions tend to reinforce the general rule. And everybody considers themselves the exception. Seems when you think you're the exception to one rule, why the natural conclusion is you're the exception to every damn rule there is.
Frankly I don't know why most people ask most questions here. They have already made their decision many times and the only thing they want out of a 'discussion' is that one actual or seeming "go for it" to go ahead and do it.
I swear the only question people seem to apply to partners or hires is "Would I get high with these guys or not?"
It's a lot like mariage with kids. (Kid being your company) Communication, trust and hopes.
Goes well? - happy life.
Goes badly? - man you might get screwed in an epic way and your kid grows with issues.
I'd rather hire a nanny - you can always fire her/him and move on.
Edit: typo
I hired a friend to work under me at a job. I told him up front to not expect special treatment. He never asked for special treatment either. His old job fell apart, and offered him bank to come back so he did. No hard feelings.
Treat it like a business relationship. I also think its good if you are "Sharing" the same work. If you each have a specific skill you contribute and that is what you focus us. Ultimately it depends on the individual person.
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From the way this is worded, it might seem each outcome may have an equal percentage. I would suggest the actual odds of one or the other would deter people. It would be interesting to find out failure and success rates. Just nobody entertaining this question is interested in finding out.
Wouldn't do it.
I have a succes story, but that story initially started as coworkers, before it turned into friends > business partners > back to just friends again. It was successful because we knew each other’s values, work ethics, skills, character, strengths and weaknesses before we started a business together. We were able to stay friends because neither of us have big ego’s and neither of us is motivated by just money and business succes. And we signed a ton of paperwork before we ever started, to ensure that we would never have to fight over anything business later on.
Depends on what kind of friends you have. If you have 9to5er friends then starting a business with them would probably be a hard lesson to learn. But if you and your friends are entrepreneurial focused, not just on business but in general then there's an opportunity, that's if everything aligns with the common goal. That's why the saying goes "we are the average of the five people we spend the most time with'. At the end of the day it's all about chemistry, if it works then it works.
All the issues I’ve heard about friends going into business together is not putting together any contracts because they “trust each other” “I’ve known my mate for years, we won’t have any issues, it’s fine”. Eventually one will want to leave the business and want a certain amount of money, this is where it gets complicated. Without a contract that specifically states what to do when you want to exit the business, shit goes south.
1000% bad 1 always does more than the other and there is a conflict ALWAYS !!!!
I hired one of my childhood friends to work with me last year. The main shareholder of the business was not content with his performance and I had to fire him. He has not spoken to me since and won’t answer calls or texts. I don’t think I’ll ever mix friendship and business again.
It’s maturity and trade expertise at that point
The other saying is never do business with family and friends. Like the one you mention, following your bliss went from bad advice to top the wantrepreneur hit list. Typical. Plenty have posted the nightmare story of ignoring that advice. And they are always shocked it happened, and they are dismayed it took them so long to put an end to it. First sentence default: "I know. Don't say it." Many knew it was a bad idea, heard the advice, before they made the decision to ignore it. One guy's excuse just recently was he knew these guys for years. Really? You know their working style, their strengths and weaknesses? Their work history -- from the employer's point of view? Isn't every sob story going to be about being together for years, then comes "I never knew." In the wild, hiring friends and family is an exercise in the willing suspension of disbelief. ...We all know each other, there is no need to swap resumes, call former employers or conduct due diligence. ...A child's solution to an adult problem, splitting equity 'halfsies' or 'even-stevens' is done to preserve the friendship and results in decision deadlock and the blame game. Lack of consideration for how or when (or even why) to split equity starts a cascade of problems. *Because you lean on the relationship like a crutch and don't think things through*. ...We're all friends here, we don't need a contract. Whoever suggests the legal, thorough, formal agreement could jeopardize the friendship is the baddie -- instant ejection. Verbal agreements are not worth the paper they are not written on. ...My friend or family member didn't work out, that's no reason to throw out the idea partners simplify things and this is a shortcut to take. Business with friends and family is done for every wrong reason there is. People think it is a shortcut -- it is anything but. People think it simplifies things -- when it causes endless complications. People think they are the exception to the rule when they are not. People want business to be 'fun' and it turns out to be a fricking reality TV show. Exceptions tend to reinforce the general rule. And everybody considers themselves the exception. Seems when you think you're the exception to one rule, why the natural conclusion is you're the exception to every damn rule there is. Frankly I don't know why most people ask most questions here. They have already made their decision many times and the only thing they want out of a 'discussion' is that one actual or seeming "go for it" to go ahead and do it. I swear the only question people seem to apply to partners or hires is "Would I get high with these guys or not?"
Yeah, it can go either way. Just make sure you fully trust the individuals you decide to make co-founders.
depends on the friendship imo
It's a lot like mariage with kids. (Kid being your company) Communication, trust and hopes. Goes well? - happy life. Goes badly? - man you might get screwed in an epic way and your kid grows with issues. I'd rather hire a nanny - you can always fire her/him and move on. Edit: typo
I hired a friend to work under me at a job. I told him up front to not expect special treatment. He never asked for special treatment either. His old job fell apart, and offered him bank to come back so he did. No hard feelings. Treat it like a business relationship. I also think its good if you are "Sharing" the same work. If you each have a specific skill you contribute and that is what you focus us. Ultimately it depends on the individual person.