Every business has its own story to tell.
Behind every good start-up idea comes brainstorming with your friends or relatives. To ensure the viability of your business plan,
You often discuss it with your friends and change it according to their reactions. All these discussions lead you to partnership-based business
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Where your friends are willing to invest. Because you are new to the business and need their emotional and financial support, engage them. However,
There are many reasons why you should not start a business with close friends.
1. Problems defining role and authority: In friendship no one is big, no one is small. You are all on the same level but it's not the same. In business, you have to play that role well. The rights you get depend on your role, which may not be the same as yours
Other friends of the same organization. The difference in these levels can create bitterness in your current relationship and automatically worsen your situation of a business decision.
2. Good friends may not always be good business partners: As a business partner, it is easy and attractive to trust a friend because you know everyone.
But the reality is that when it comes to the same business, no matter how compatible you are with others inside and out in terms of attitudes, beliefs, and values.
Then comes a situation that leads you to the opposite point of view. There can be many conflicting conditions related to development. Create an effective business model or company vision and goals.
3. Lack of Premature Planning: Your friends and you often share this wonderful relationship that won't really be effective in business. You must be Active in emergency disaster management. You need to consider a backup plan for the worst-case scenario.
4. Problems in setting business goals: There is always a struggle to set long-term and short-term goals. you will be forced to concentrate
Long-term goals When your friend wants to prioritize short-term goals. Disagreements will be great when setting these goals.
Can be fatal and have a negative impact on the growth of your business in the long run.
5. A business collapse can sabotage your friendship: Not all startups make it big; most of them only live 1 or 2 years. and when it breaks It happens that not only does your money go down, but it also puts a strain on your relationships with your friends and business associates. Thus the total cost has a great impact on the other participants.
7. You both fight for quality time together: You cannot do this as both of you are involved in business and hold an important position in the enterprise. Often it's time to plan a vacation or go out together. You have to rest at the same time even if you're not going out together
Which is not good for business. Plus your absence can be dangerous for your business.
8. Lack of Required Skills: Every business venture requires specific field-related skills that cannot be brought into your business when the spouse is your friend. This is a good thing to do, and it should end there.
9. Problems while evaluating performance: You can be honest with your friend but it is difficult to be a clear observer of the evaluation of your friend and partner.
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To. Being honest and talking about areas of improvement can strain your relationship and lead to unsolved problems and a negative impact on your business.
10. Successful business but strained relationship: Who says that only unsuccessful business can create problems between partners. success is something
It can blow anyone's senses. Growing the business can lead to problems and conflicts between the owners and friends for the success of the business.
The goal is not to disappoint startups with friends, but to talk about future issues.
SOURCE: BUSINESS WORLD
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