In a digitally enabled, worldwide economy that is constantly bursting with opportunities for would-be entrepreneurs and start-ups, it would be wise for opportunistic individuals to first consider the pros and cons of running a business with a friend. In an age where networking only proves to be of more and more importance, the prospect of forming a new enterprise with a close contact can certainly be appealing.
But before such people would push forward with bravado, grand ideas, and hopefully some investment capital as well, one initial cost/benefit analysis they should perform is the acknowledge of these pros and cons of running a business with a friend.
Pro: Shared Passion
One potentially phenomenal possibility is the simple knowledge that “two heads are better than one,” an adages especially held in high veracity with zeal is shared between two close people. When two (or more) individuals have a common desire, their combined cumulative energies and effort will yield even larger rewards per time spent. The effects of brainstorming in such an environment can, alone, be a wonderful asset throughout the course of their business endeavor. Having concerned, common-bonded allies can be as great of a resource as any of the others involved in formation.
Pro: Bonded Peers
Among the pros and cons of running a business with a friend has to involve the intangibilities of friendship to begin with. Beginning with such a strong relationship means that certain workforce political elements that typically require a measure of work are immediately available, including trust, information sharing, intuitive communication, knowledge of preferences, and other valuable insights, whether obvious and advantageous or subtle and seldom seen.
However, within the pros and cons of running a business with a friend would also have to include the negative side of personal relationships as well. As many people would realize, when you spend a significant amount of time with someone, the results are not always necessarily fantastic. Petty words get exchanged, known pet peeves are exploited, overexposure sets in, and both parties can be driven to the brink of insanity by rampant familiarity.
One issue that can arise with a couple of close friends going to work together is that, even somewhat in part due to their shared passions and common knowledge, they may enter business with like-minded fervor yet fail to foresee or realize their collective shortcomings. With their shared influences and similar educational base, they may have glaring omissions from the total skill set required to maintain a healthy bottom line. Two buddies may be skillful accounts and seek to establish an accounting firm, but if neither has any marketing sense or propensity toward interpersonal communications, their venture is likely to fail.
Trying something new can sometimes be dangerous. The pros and cons of running a business with a friend pay testament to this fact, and surely too many willing pairs have already discovered the dire cost of unforeseen complications that arise with such prior relationships. Then again, the right two friends may find that running a business together is just the activity they need to achieve further fulfillment and finally truly reap the rewards of their labor.