What do the following people all have in common?
Gates. Allen.
Jagger. Richards.
Tyler. Perry.
Hewlett. Packard.
Jobs. Wozniak.
These people have two things in common:
- they are exceedingly wealthy (billions in revenue)
- they founded businesses as friends
The common wisdom tells us never go into business with friends or family. To a great degree, that’s pretty good advice. My personal experience is mixed. I’ve been in business (in a manner of speaking) with friends before, and it hasn’t worked out. It seriously affected our friendship.
But on the other hand, the facts are incontrovertible: good friends can make excellent business partners. Good friends know each other’s strengths and weaknesses. Good friends know when to switch to “business mode: off.” Good friends provide each other with non-judgmental feedback and constructive criticism. These are difficult qualities to find, and when a friendship is strong enough to handle a business relationship, it can be rewarding for all parties.
Being a successful business person is a tremendously intricate occupation, and the more you can share the load, the better it is for everyone.
I’m working out some simple business structures with a few good friends of mine, where we are all fully aware of the dangers to friendship when going into business together. Our goal is to complement each other’s skills, and compete in a way that boosts everyone’s bottom line.
What’s your experience? Good? Bad? What should we watch out for? What do you think our biggest pitfalls will be?
