NEXT STEP AFTER PARTNERING WITH YOUR FRIEND
These are the next steps to take after you have successfully followed the “Tips to consider before making your friend a business partner.” It is best to set some ground rules early in the journey so as to lead to a better understanding among both parties.
Next step after making your friend a business partner:
Define your roles and responsibilities
The first important step to take after deciding on the friend to partner with is Role and Responsibility definition. This will help avoid any overlap, and will also help you clearly define your goal as a business. Once everyone knows their role, then they know what to do.
SEE ALSO: 50 STEPS TO START YOUR OWN BUSINESS
Every member of the team should have a unique role, provide a unique service. This is why it is important to partner with someone who possess a skill you don’t. This will also get rid of the common syndrome of “Who is the boss” as everyone would know their role and what is expected of them.
When in business with a friend or enemy, never mix your personal finances together. Ensure that you have financial best practices in place, to make sure there’s no mismanagement of company funds. Establish separate business and personal bank accounts to this effect and every penny spent should be accounted for.
Before starting the business at all, you should have legally binding documents that defines it; business partnerships between friends are not an exemption. Assume a high degree of professionalism when it comes to business matters and refrain from joking about serious financial matters that would impact your business.
It is important to formally discuss and record possible exits, outcomes, and likelihood of total failure as early as possible. This way, when things go south, they can be resolved amicably between all parties.
Get rid of Bureaucracy
As partner, you will have to make joint decisions for the growth of the business. However, situations will arise when immediate decisions have to be made with no time or opportunity to run things by your partner. You will need to trust your partner to make the best decision.
Emotional Quotient (EQ)
High EQ is as important as High IQ when it comes down to partnership. High EQ is important because it helps you leverage your awareness of emotions for effectiveness in the workplace. It helps achieve career development factors such as leadership, decision-making, open communication, trusting relationship and customer loyalty.
Partnerships are not perfect, comes with a whole lot of flaws and risk but then again, it is just like marriage, or physics; unlike charges attract, negative complements positive, a reaction can only occur when you add acid to base not when you add base to base. Make your partnership work and believe in it.
Before making the big decision of going into partnership with a friend, identify the skills you have and those you lack that are needed for the business; then find the best person that can fill this gap. Do not make the mistake of bringing your friends with no beneficial skills on board just for the sake of friendship. This is a recipe for disaster.
If you must bring them on board, maybe because they have access to funds, make them silent investors. This way, they are not directly involved in business operations, a win-win for everyone.
If you have any question or any addition, drop it in the comment section and we will get back to you.