When Friends go Into Business Together ....

One of the more dated clichés 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.

You may like these other stories...

The Financial Accounting Standards Board (FASB) has relaunched its technical agenda web page, which Chairman Russell Golden said will inform visitors at a glance on where any given FASB project stands, the steps it took to...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...
Read more from Larry Perry here and in the Today's World of Audits archive.AU-C Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks, paragraph ....

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.