Anyone done business with a friend?

[Smoke_Rutz]

Long story short.

Good friend sees an opportunity for me to join his business. It honestly seems like a great fit for a lot of reasons.

But the conventional wisdom not to do business with friends is holding me up a bit.

Does anyone here have experience in this space? Have you stayed good friends? Have you become better friends? Enemies?

I know there’s a lot of nuance but I’m just hoping for some perspective.

Thanks all!

 

[SteveCNJ]

I have found there an inclination for friends to have sloppy business practices. They forego having the business properly evaluated at the time of the buy-in. Don't have an attorney either create or update a buy/sell agreement. Everything should be an Arms length transaction. If it's business, treat it as such.

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[Dexter Grayson]

I changed careers about 18 months ago to go work for one of my best friends. It’s been one of the best decisions I’ve ever made. I know it’s working for and not with. I know his role and I know my role. I made it very clear before taking the job that our friendship was exponentially more important than the job so if things went sideways we’d always choose the friendship over the job.

 

[Q_Sertorius]

My current boss has been my best friend since 1998. We went to the same university, each served in the Marines, and have a great deal in common apart from that. There have been some times where it might have been easier to work for someone else, but I consider myself blessed to work for someone I respect and trust. I think he has made some decisions that probably benefited me more than him and that made me uncomfortable.

Edit - we have repeatedly discussed the fact that if one of us needs to make a business decision to go another way, our friendship won’t be affected.

 

[Kyguy]

The amount of businesses formed/ran by partnerships or with friends that succeeds is small. A partnership is the number one failing business model. If it's a business and your livelihood, it needs to be treated as such. The proper legal measures need to be taken to ensure your protection as well as his, and the business needs to have defined roles and responsibilities, and the accountability for such. There's some big difference between working with and working for... You both need to decide which one is going to be.

 

[Smoke_Rutz]

I have found there an inclination for friends to have sloppy business practices. They forego having the business properly evaluated at the time of the buy-in. Don't have an attorney either create or update a buy/sell agreement. Everything should be an Arms length transaction. If it's business, treat it as such.

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I’d absolutely want to dot the Ts and Cross the I’s

Less room for interpretation ought to help in avoiding conflict


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[MallardSX2]

Good Friends are hard to come by. I don't make money with friends or loan money to friends. As a matter of fact, we don't talk about work or finances. Ever.

Personally, I wouldn't ever risk a friendship over a job. You can always find a new job but finding new friends is not as easy as it was in grade school. Everyone says that "If we need to make a business decision to go another way, our friendship won’t be affected." But deep down, we all know that simply isn't true...

 

[grfox92]

It depends how well you know this friend. My best friend is someone I wouldn't go into business with. I have not so close friends who are the people I would want yo be in business with.

Just because someone is a great friend doesn't mean it's someone you should do business with. Attributes for good businessmen arent mutually exclusive with the attributes of a good friend.

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[justinspicher]

I just started working for one of my buddy’s and it’s been pretty awesome. We have distinct roles and it’s more fun than it should be.

 

[307]

I’d absolutely want to dot the Ts and Cross the I’s

Maybe send your friend to Rokslide, I have some advice for him.

 

[Choupique]

I've had business associates become friends but not the other way around. I don't think I could go into business with friends or family.

 

[ODB]

Yes. We ran a small painting/light construction company in northern Va in the mid 90s. We only stopped working together because I realized I wasnt very good at the construction part and that’s where he wanted to expand. We are still best of friends 30 years later.

 

[survivalistd]

Doesn't work most the time

 

[Smoke_Rutz]

Maybe send your friend to Rokslide, I have some advice for him.

Was that sarcasm lost on you?


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[Jimmy]

Equal partnerships often don't work, someone has to be in charge imo.

 

[dtrkyman]

I don’t know that they work less than any other business, just a risk of losing a friend.

If you’re not both all in then it won’t work, but how do either of you really know?


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[Beendare]

I was in business with my best friend for over 4 decades- it was great.

The key; what kind of person you and your friend are.

In partnerships, one person always thinks they work harder than the other....or is more important than the other....it's human nature.

 

[TaperPin]

It depends on the personalities. I’m friends with many guys I wouldn’t be able to work for forever, but the nature of small contractors is we get help from other small contractors or subs and some of them are friends.

On the other hand I had a business arrangement with a close friend and his wife suddenly pulled the rug out from under my side and we never recovered as much as we enjoyed hunting and shooting together. They were like family until that point and it just goes to show we get along with friends on a different level from emotionless business decisions. The wife also has a close friendship that didn’t survive a promotion at work.

On the other hand, I’ve also worked for guys I couldn’t stand professionally, but now get along with them personally quite well.

 

[Sinistram]

I applaud those of you who have been able to make those arrangements work, especially for a prolonged period of time. You certainly beat the odds.

As a general and strictly-enforced rule, I do not do business with friends or family.

 

[LightFoot]

Long story short.

Good friend sees an opportunity for me to join his business. It honestly seems like a great fit for a lot of reasons.

But the conventional wisdom not to do business with friends is holding me up a bit.

Does anyone here have experience in this space? Have you stayed good friends? Have you become better friends? Enemies?

I know there’s a lot of nuance but I’m just hoping for some perspective.

Thanks all!

Don’t invest money with a friend or family that is more than your relationship it worth. I won’t invest (or loan) money that I’m not able to let go of.

From my professional perspective, litigation against a family member or friend is emotionally devastating.



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