The Approved Franchise Association

a new way forward
for franchising

0208 088 2400
     

Top Tips For Starting A Business With A Friend

That's what friends are for ...

 
 


Have you ever considered starting a business with a friend? Starting up on your own can be daunting, and you may have been advised not to mix business with pleasure ...

If you're thinking of starting a business with a friend then you need to get it right from the start!

If you're thinking of starting a business with a friend then you need to get it right from the start!

copyright: wavebreakmediamicro / 123rf stock photo (licensee)

Starting a business with someone you know well and like spending time with can work out brilliantly, as long as you put measures in place to ensure you’re both happy and are able to maintain your friendship, no matter what happens.


So, here are my top tips for starting a business with a friend:

  1. Make sure that your business’s structure is secure. Engage a solicitor in checking your contracts and making sure both of your interests are protected, in the event of things not working out.

  2. Discuss your long term aims and objectives, to ensure that they are in line with each other. For example, if one of you is looking for a sideline or part-time venture, while the other wants to invest all their time to grow the business, it can’t work for you both.

  3. Agree on your company values as, in my opinion, this is the foundation for building a successful business. As your business grows, you will need to ensure you communicate these values to any new franchisees or employees that come on board, so it’s essential that these are confirmed from the beginning.

  4. Make sure you agree on exactly how the company will be run and that any computer systems you implement can be accessed and updated easily. This will mean you can both be clear and informed on every aspect of the business, especially when it comes to sales, marketing, finance and management.

  5. Define your individual roles and responsibilities from the start. When good friends work together, it’s very easy to take a collaborative approach instinctively and want to help each other out.

    However, it is essential that you both decide which areas of the business you’re both responsible for, so that you don’t duplicate work or find your roles start to overlap. If you allocate responsibilities based on your own strengths and weaknesses and make sure you stick to them, things will flow a lot more easily.

  6. Make sure you communicate frequently and honestly about day-to-day operations. This is another essential component of running any successful business with a friend, as you will both always be aware of what’s happening in all areas of the business at all times.

    Providing each other with regular updates and speaking out if something is bothering you is crucial. We are often reluctant to be confrontational with friends or be the bearer of bad news, but honesty is the best policy and, for your business to run smoothly, you will both need to prioritise your business relationship.

  7. Discuss money upfront, which may feel awkward, but will help to avoid disagreements later. Confirm how much each of you will be contributing to the start-up costs required and how that affects the balance of shares in the business.

    Also, you must agree on how much money each of you will be taking from the business and how any remaining money will be spent to ensure your business’s growth.


Starting a business with a friend is always a big decision but, if you have the right structure in place from the outset, it could be the ideal confidence booster you both need for a positive outcome that will help you along the way to becoming successful entrepreneurs.

Until next time ...

CLAIRE ROBINSON




   Buffer
Click here to Share, Email or Bookmark this website

Précis (8)





More about Claire Robinson ...

I am a serial entrepreneur, having successfully established a networking group, a magazine advertising company and a building contracting company over the past few years.

Now living in Devon, I'm CEO of The Approved Franchise Association. I have a passion for business and am determined to grow the AFA int the leading franchise association in the United Kingdom.

Telephone:

0208 088 2400

Website:

http://www.theafa.org.uk


More of my blog posts for you to enjoy ...

The Benefits Of Joining The Approved Franchise Association
A new way forward for franchising ...

Making A Difference In Your Local Community
Getting involved can only benefit your business ...

Member Spotlight: Dating Options
One of the UK's leading traditional dating companies ...

The Reasons Why Franchisees Underperform
And how to overcome it ...

Issues To Consider Before Signing A Franchise Agreement
Remember, it's a major commitment ...

Member Spotlight: Access4Lofts
Could you be their next franchisee?

42% Of HR Professionals Yearn For A Good Work-Life Balance
And want to work more flexible hours ...

My Top Five Tips for Successful AGM Planning
Keeping in touch with your franchisees ...


 

Keep in touch ...

Send us an email
View ourRSS newsfeed
Find us on Facebook
Follow us on Twitter
Connect with LinkedIn

By Category ...

Benefits Of Membership (4)

Exhibitions (1)

Franchise Success (2)

General (11)

Legalities (2)

News From Our Franchisors (9)

By Popularity ...

8 Things To Consider Before Buying ...

Let's Get Back To Basics: What Is A ...

Introducing The Approved Franchise ...

Issues To Consider Before Signing A ...

Brexit And What It Could Mean For T ...

EWiF: Changing The Face Of Franchis ...

The Benefits Of Joining The Approve ...

Clear Brew: Celebrating 10 Years In ...

Making A Difference In Your Local C ...

Top Tips For Starting A Business Wi ...

Quote of the day ...

"Defeat may serve as well as victory to shake the soul and let the glory out"

Login ...



Remember me