6 Ways To Run A Successful Business With Friends or Family

Running a business with friends and family may present many unexpected challenges within your relationship. However, with the right person.…you have the possibility to also overcome and achieve amazing things. In this post, I shared with you 6 ways to run a successful business with friends or family.

It’s always more comforting to do something scary with someone that you’re close with. Whether you’re starting a business or going skydiving, most people would prefer to do it with a friend or family member. The best part of building a business with a friend or family member is that the trust is already established and you know one another fairly well.

For any business to be successful, trust and good chemistry amongst the founders are extremely important. Although there are also a good amount of cons with having a family or friend as a business partner, it seems that some of the most successful startups have begun in this manner. Whether your business partner is a stranger or trusted friend, there will always be pros and cons that you will need to deal with.

I have had business ventures with friends and family, which has allowed me to learn quite a bit over the last few years. If you are planning to build a business, I can help you with some tips to make it more successful. Here are 6 ways to run a successful business with friends or family:

1. Communication Is A Must

In any relationship, whether casual, business, work, family or intimate, communication is everything. Communication is the key to having a good relationship of any kind. With a family or friend as a business partner, it will still require effort on your end to make it work. In a normal relationship, we have the tendency to hold back on the way we say things because we don’t want to ruin our relationships outside of business.

However, when you start a business, you have to be willing to confront and call out your partner when necessary. With any business partnership, it is important to let go of assumptions and communicate clearly and openly to put everything out in the clear.

2. Have A Clear Chain Of Command

In any business, there has to be a clear indication of who is in charge of which things. One of the most awkward conversations to have with your friend/family member is figuring out who should be the CEO. Often times, both members want the role of CEO and this is a topic where a ton of disputes, arguments and fights arise.

However, in business you have to always make the decision that is best for business. Which of the two is most fit for the position? You have to ask the tough questions and keep it real if you want to successfully launch your business.

3. Never Be Personal With Differences

It is very unprofessional for a person to take any disagreements or differences to a “personal” level. Working with friends or family can sometimes create friction between them. In a business meeting, it is okay to burst out the anger, raise your voice or bang the table to convey resentment or disagreement, but after the meeting, there should be hugs, apologies or peace between partners. In business there will be fights, but never let these fights and disagreements to ruin your relationship.

4. Set Expectations

In every business, there is always an expectation from the employees and the rest of the team. Before and during the launch of your business, you need to make the expectations crystal clear. Set the ground rules and establish who will be in charge of what. While these expectations should be known, it doesn’t mean that they are permanent and that changes can’t be made.

It is understandable that each of you needs to work and you are expected to have an outcome based on your roles and responsibilities in the business. Often times, family or friends jump into a business idea because they are both in love with the concept and the possibilities of success. However, they overlook some of the fundamental things that make a business successful and end up having a tougher time later on.

5. The Business Is The Priority 

Many people have a tough time realizing that the business is the priority even over the relationship. If two strangers got into business, they wouldn’t even have to think twice about choosing between the relationship and the business. However, when you do get into business with friends and family members, the relationship sometimes becomes a bigger priority to the people involved.

I have been in this situation many times, but I’ve realized that the business is always the priority. When you decide to engage in business with a friend or family member, you both have to go in understanding that your relationship may not be the same and you both have to be okay with it. If the family or friend is not providing value to the business, that family or friend may have to be let go. While this isn’t an easy conversation to have, you have to sometimes do what is best for the business long-term.

6. All Business Is No Fun

Working with family or friends is great in the sense that you don’t have to be professional all the time. You can quickly disengage from the business and enjoy some fun as well when you guys start feeling burnt out. Often times, friends and family members make the mistake of even talking business when they hang out and go out for leisure.

When you go out for leisure, keep it fun and only fun. The best business partnerships are the ones where you can go into a boardroom and blow away a board of investors while also going out on a weekend to the club and partying hard. However, to get to this type of relationship….you have to be able to take the professionalism out when you leave the office.

Conclusion

Running a business with friends and family may present many unexpected challenges within your relationship. However, with the right person.…you have the possibility to also overcome and achieve amazing things. In this post, I shared with you 6 ways to run a successful business with friends or family.