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    4 Replies Latest reply on Jun 30, 2008 3:47 PM by telmob

    Best Friend/Room mate as business partner

    SpartanMan Newbie
      I've been reading alot about partners in the last few days and I'm curious what everyone thinks about have a close friend as a business partner. I've read its a bad idea. For me I would feel more comfortable working with a close freind. Were both 25, live together and are in law enforcement. I've began to start on this business idea for the last few months without anyone knowing. I want some help and more ideas, but if It dont work out with him, I dont want the criticism, or feedback from him our our cyrcle or friends. Because I'm still going on with my idea no matter what.

      Is it a good idea to let him know my plan and ask for the partnership, or dont bother, keep it to myself and go ahead with the plan on my own.
        • Re: Best Friend/Room mate as business partner
          LUCKIEST Guide
          Best Friend/Room mate as business partner, Welcome to this web site.

          In my view a partner is a great idea, IF. A Partnership is like a marriage. If you choose the person you marry and you choose the partner and both are good, then YES a partnership is a great idea.

          *A Partnership exists when two (or more) persons join together in the operation and management of a business venture. A formal partnership agreement is recommended, in order to address potential conflicts before they arise and it would be a good idea to talk to a Lawyer.*<br /<br />*YES, you have to *let him know your plan and ask about the partnership. How do you know he is interested in being part of the business or being your partner?? (Like asking if the other person wants to marry you).

          LUCKIEST
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          • Re: Best Friend/Room mate as business partner
            Lighthouse24 Ranger

            Your last comment was "I'm still going on with my idea no matter what." So if you can do that anyway (without him/her), why have this person as a partner to begin with? Assuming you have a good answer/reason . . .

            Any business partnerships should start with the equivalent of a pre-nuptial agreement, prepared by an attorney. It should spell out:
            (1) Each partner's role and responsibilities (How will you share the workload? Who will be responsible for marketing, sales, inventory, accounting, personnel management, safety, security, housekeeping, etc.?);
            (2) Each partner's authority (Who can make purchases, sign checks, fire employees, or sign contracts? Who can make binding commitments to customers or suppliers? When problems or disagreements arise, who has the final say?);
            (3) The financial management guidelines that each partner is committing to (How will you prepare budgets, manage cash flow, cover losses, or split profits?);
            (4) Termination and buy-out agreements (What happens if one of you wants or needs to sell his/her share? What happens if the business fails? Business partnership fail at a higher rate the marriages, and when things begin to go bad, similar feelings of disappointment, anger, injustice, and deception will surface. What happens if the business succeeds? Believe it or not, success creates more problems in a partnership than failure does.)

            I'm not saying that two business people can't plan a joint venture on a cocktail napkin and seal the agreement with nothing more than a drink and a handshake -- it's like a love at first sight that lasts for lifetime. It does happen -- but not very often.
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            • Re: Best Friend/Room mate as business partner
              simon07 Wayfarer
              There are a lot of successful examples of friends running a business together. You may get along as friends, but do you have the same business objectives and goals? Lighthouse has a great suggestion - - - talk and layout the roles, financial contributions, etc. Who knows? During the process, you may find out its a perfect business partner match or alternatively realize that its best to keep business and friendships separate.
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              • Re: Best Friend/Room mate as business partner
                telmob Newbie
                Well... i just want to say i do have a best friend with whom i share an appartment with and we are bussiness partners. And we do mix our private lives with our professional lives all the time... but it's working for some time now and i expect it to continue like this for some more time, until one of us decides to get married or something... :)