Starting a business with a friend

[Interis]

My friend is offering a partnership in an anti-aging business. She is mostly thinking of simple treatment to start with and expand from there. I have been thinking about investing my money and get additional income, but I'm not exactly sure about this. In your experience, what should I be careful of? What is the best way to start?

 

[IrishLass2247]

My friend is offering a partnership in an anti-aging business. She is mostly thinking of simple treatment to start with and expand from there. I have been thinking about investing my money and get additional income, but I'm not exactly sure about this. In your experience, what should I be careful of? What is the best way to start?

Starting a business with a friend can do one of two things. It can grow or destroy a friendship. I would caution anyone to get into a business or have any money transactions with a friend. That is not to say that it can't work. I had a business with my best friends several years ago and we worked very well together. The only reason we are not still in business together is that she had kids and it was too much for her to manage. But, I really think she and I were the exception and not the rule. Just give it a lot of thought.

 

[Impaired]

The sad truth is "GET IT ON PAPER" - too many friendships have ended when it came to choosing between money and friendship.

 

[Unity]

The sad truth is "GET IT ON PAPER" - too many friendships have ended when it came to choosing between money and friendship.

Judge Judy has taught us that this is VERY true haha.

Also, if you're both new to starting a business definitely do your homework. Most cities have a chapter of SCORE in them which offers free business counseling. They can help you with analyzing things and writing up a business plan, researching investors, etc.

You also need to realize that all businesses take time to blossom if successful...you're putting extra money and effort into it for quite a while before you're turning a profit. Break-even profit projections are often most realistic, so if you and/or your friend think that this will be a quick success and easy way to be your own boss, think twice.

Another big thing is doing intensive homework on competitors in your area when you plan to set up a storefront (or even if selling things from home). Who else does what you're planning to do? Businesses, medical providers, etc.

I used to be a Vocational Rehabilitation Counselor and had to learn a lot more about all of this than I thought I'd ever know as a Social Worker, haha.

 

[Interis]

It's very awkward to talk formally about splitting profits when we used to buy lunch for each other without thinking about returning the favor. Maybe I sound too doubtful that she can't act professional, but we never know until it happens. Money is a very scary thing against a relationship.

It looks like what I really need is a serious talk about the exact plans and goals. Anything I should be aware of so I won't piss her off and ruin this chance for us?

 

[Keri35]

For sure, make sure it's in writing. What will be your duties? How much say will you have in running the business? How much ownership do you have? Friend or not, know what you're getting in to.

 

[NellyBell]

It's very awkward to talk formally about splitting profits when we used to buy lunch for each other without thinking about returning the favor. Maybe I sound too doubtful that she can't act professional, but we never know until it happens. Money is a very scary thing against a relationship.

It looks like what I really need is a serious talk about the exact plans and goals. Anything I should be aware of so I won't piss her off and ruin this chance for us?

I can imagine that would be awkward. But if you're having doubts about her acting professional, that's probably something you need to know before starting a business with her because sometimes professionalism is going to have to override your friendship - or at least be a part of it. Money is dangerous in relationships but it can and has been a part of many. Like Keri35 said, get it in writing, make it official. Just tell her you've seen too many shows on TV that show it going wrong and while you don't think anything like that could ever happen to the two of you, there's no harm in doing it, for the protection of BOTH of you.