One of the more dated clichÃ©s is never do business with friends or relatives. However, in today's booming economy, doing business with friends, for example, makes sense in many ways thanks to a shared philosophy and mission.
How do successful businesses between friends incubate? Very well, according to experts if timing is right and the friends remain friends.
First, both parties must share the same goals, and that means more than just wanting to leave the current job for the other side of the fence. Making millions of dollars may not be the goal in mind; it could be to achieve a milestone or live a dream never before realized.
Complementary skills is the next consideration. You would not want to possess the same skills or competencies as your business partner, but instead would want to complement one another by building each other's strengths.
Third, friends must have mutual respect for each other. Although this may seem like a 'given' between friends, it should be something discussed and spoken to one another at all times. Respect breeds success.
Last, friends as business partners should understand the costs involved in the venture. Both should be present at all times during financial discussions with professionals, and both should be familiar with the operations side of the business.