Friends can offer support throughout the ups and downs of life. Whether you met in school, at work, or in a social setting, they can become sounding boards for personal and professional issues. But what happens when those personal and professional lines intertwine? Starting a business with friends can have its own ups and downs. Discover the keys to maintaining a healthy friendship and partnership.

Pros of Starting a Business with Friends

Friends are around for a reason. Typically, you respect their opinions and generally enjoy being around each other. This mutual trust is a sturdy foundation for fostering a strong partnership. Here are some other reasons why it could be a good idea to work with your friends:

• Shared vision. Friendships can start from a similar interest and grow into having the same career goals.
• Same values. Matching fundamental beliefs can help guide business practices, decisions, and priorities.
• Open communication. If you already tell each other everything it can help navigate otherwise difficult conversations and easily solve problems.
• Understanding. You already know their strengths and weaknesses which helps to assign roles and delegate tasks.
• Support. Starting a business is tough. Recruit those who will have your back in good times and bad.
• Enhanced work environment. Improve moral and motivation by surrounding yourself with positive people you can be comfortable around.

You know your friends. You can tell who would make an excellent business partner. Even if you’re already excited about the prospect of working with your bestie, it’s important to consider the downsides.

Cons of Working with Friends

If you can’t imagine working with anyone in your social circle, don’t worry. That doesn’t mean you can’t be friends. But it’s better to be ready for the possible conflicts that may arise before it’s too late. You don’t want to lose a business partner and a best friend at the same time. Here are some things that can go wrong:

• Straining relationships. Everyone is free to have their own opinion and disagree at times. There are ways to get over these issues. However, consistent disagreements can crumble a friendship and business.
• Commitment levels. Different priorities can lead to an imbalance in workloads and responsibilities.
• Taking advantage. Friends can get too comfortable in a situation and take too much for granted.
• Stress fractures. Business blunders can seep into your social life and add even more stress.
• Emotional ties. In order to prevent causing a rift between friends, honest communication and constructive critique may not come as easily.
• Power dynamic. It could become harder taking orders from a friend seriously.

Working closely with friends can blur the lines between work and personal life, throwing off a sustainable work-life balance. But there are ways to set yourself, your friendship, and your business up for success.

Business Planning with Your Pals

Before you officially go into business with a friend, there are important parts of the business plan process you shouldn’t skip:

1. Define roles and responsibilities. Clearly outline realistic expectations to avoid confusion and ensure a balanced workload.
2. Communicate. Come up with a system to address issues promptly and honestly.
3. Seek legal advice. Not only is it good business, but it will help to have a moderator who can go over contracts to protect all parties.
4. Prepared for conflict. Feel free to discuss the con list above and develop strategies for resolving these issues constructively.
5. Know when to relax. Everyone needs to decompress from the stress of everyday work and life. Remember you were friends first and schedule time to balance the business with the friendship.

Like anything in life, you have to weigh the good with the bad. Have an honest conversation with your friend to determine what’s most important in your life and if you’re relationship can survive and thrive in a business partnership.