Starting a business with friends usually feels easier and more promising. Because, you already know each other's character and strengths and weaknesses. This is what makes it easier and more comfortable for you to unite your vision and mission in business.
However, keep in mind, there is no guarantee that all businesses built with close friends will end in success. In some conditions, it can actually backfire because personal and business matters get mixed up. If this is the case, apart from business continuity, the course of friendship could also be threatened.
For this reason, before starting a business with friends, you need to pay attention to several things, from preparation to continuity. So, you can apply the following tips so that the business you start with your friends can run as expected.
Choose the Right Business
First, you must first determine what type of business you will run with your partner. In choosing it, you need to discuss several things with your friends, such as interests, knowledge, capital, market share, and also where the business will be run. The more interested you are in a line of business, it is usually directly proportional to your level of knowledge.
On the one hand, starting a business must also be realistic. Make sure you and your colleagues have enough capital to run it. You also need to do research as to whether your business has a clear target market or not. You need to prepare all these things as risk mitigation when you start running your business.
Separate Business and Personal Affairs
Large text. After choosing the right type of business, it's time for you and your friends to strengthen your determination to separate business from personal matters. Be professional when dealing with business, such as not playing or chatting on topics outside of business that are often discussed at hangouts. Then, if one of you makes a mistake, don't hesitate to remind each other.
Even so, if you are outside working hours, take the time to chat about your favorite topics or just talk to each other. This will make your friendship last even though you are busy with new business.
Align Vision and Mission
When building a business, of course you must have a vision and mission. The existence of a vision is needed because it is the view, dreams and goals of a business that you want to realize in the future. The vision also becomes the business identity which means that every activity in the business will refer to it.
Meanwhile, missions are concrete steps taken to realize the vision. For example, if you want to start a business building an architectural studio with the vision "to provide an architectural service that helps improve the quality of people's lives", then your business mission includes: (a) creating building designs that can improve the quality of life; (b) providing value-added services and solutions in the field of architectural services; and so forth.
Arrange Capital and Profit Distribution at the Beginning
Sufficient capital is an absolute requirement when running a business. Capital is basically investment funds, not money for daily or family needs.
To divide capital, the easiest way is to divide it in the same amount, 50-50, so that the distribution of profits will be easier. Apart from that, you can also divide them according to each agreed ability. If so, then the profits you will get will be adjusted to the percentage of capital you and your friends deposit.
Create a clear division of roles and tasks
Even though you are friends with your business partners, still arrange the division of roles and tasks clearly. This division is necessary to build an effective and efficient work system. Don't just be friends, do all the tasks as long as they are executed.
After dividing tasks and roles appropriately, practice them consistently. Don't forget to carry out regular evaluations to solve challenges and find future improvement strategies.
Bind in a Cooperation Agreement Letter
Finally, the five points above could be a waste of time if you don't bind them in a cooperation agreement. The cooperation agreement letter contains the rights and obligations that have been agreed upon by the collaborating parties. Apart from being a binder, this letter also functions as a reminder. For example, when a problem arises regarding profit sharing, you and your friends can read the agreement again to find the best solution.
To formulate a cooperation agreement, it is best to consult with relevant legal experts. This is done to ensure that no party is harmed.
These are the tips that you can apply when building a business with social friends. Make sure your friend is the right partner who can help you achieve the various business goals you dream of.