In today’s highly
competitive business climate, startup entrepreneurs want to pursue their most
ambitious goals with people they trust.
Have you considered co-founding
a new business with family or a friend? If so, you’re not alone. About half of
all startups today are organized among friends, family members or spouses. It
makes sense, too, because in today’s competitive business climate, startup
entrepreneurs want to pursue their most ambitious goals with people they trust.
However, when working with
friends, expectations of loyalty and understanding are higher than is common
among everyday work colleagues. And when friends let us down, resentments can
linger and cause a deep divide in both work relationship and personal
relationships.
Here are five
ways startup misunderstandings can spiral out of control and potentially
end friendships, according to Fox
Business.
#1: Unmet Expectations. The typical
startup business will take a lot more time and money to become profitable than
anyone ever expects.
#2: Work Style Conflicts. Even though
friends get along great when hanging out at the bar, this compatibility may not
resonate in the office environment.
#3: Business Strategy Disagreements.
New startup partners tend to be well aligned to the grander goals of an
organization, but rarely have worked through the nitty gritty details of how to
achieve these goals.
#4: Spending Conflicts. One of the most
common areas of disagreement is spending authority and budget priorities.
#5: No Way Out. What happens when one
partner wants to sell out, quit or reduce involvement in the business?
A recent Forbes article, titled “Co-Founding
With a Friend – – Without Decimating a Friendship,” shares a few words of
wisdom from successful businesses founded by friends. One startup says “when
making decisions, we make the conscious decision to not be disrespectful
because at the end of the day, we want to stay friends.” Another startup
recognizes the importance of keeping work and personal lives separate.
In short, to avoid these business and friendship ending
misunderstandings, it is important to discuss all issues that might interfere
with productive business building.
References: Fox Business (June 13, 2011) “Why Co-Founding a Business Can Decimate
Friendships”
Forbes (December
12, 2012) “Co-Founding With a Friend – Without
Decimating a Friendship”