Mixing business with besties: Tips for starting a business with a friend

As some of you already know, Francesca and I have been running YES GURL for almost three years. What started as a creative outlet is now a full-fledged, small business!

Over the years, people have asked me if they should start a business with their close friends, and to be quite frank, I’ve usually said no. Not based on my working relationship with Francesca – our working relationship is great – but based on the fact that just because someone is a great friend, doesn’t mean this translates into a great business partner. Different goals, opposing work ethics and poor business decisions can strain any business relationship, let alone an already established one. You’re not only risking a business partner here, you’re risking a friend.

However, working with your friend doesn’t have to be all doom and gloom, and although there are risks, the pros can far outweigh the cons. It’s worked out great for YES GURL and I’ve seen it work out great for others. So here are some tips based on what’s benefited us.

Share the same goals

Before you and your friend start to run a business, establish clear goals to ensure that you’re both on the same page. Before YES GURL’s inception, Francesca and I wanted to create an online magazine for young women. Our approach could have been a lot more specific, and over time, we’ve definitely carved out better goals. So I’d advise you to be as detailed as possible, as early as possible. Make a list of short term and long term goals. Go even further and create a business plan. The more aligned you both are, the better your shared vision.

Define roles and responsibilities

From knowing your strengths and weaknesses; define roles, create job descriptions and delegate clear responsibilities between yourselves. Francesca and I are lucky we have a diverse range of skills between us. Francesca’s great at some things that I can’t do, and vice versa, so we’ve used this to our advantage.

However, roles and responsibilities don’t necessarily have to be set in stone. As a business naturally evolves, so may your roles. So keep having conversations about them. Furthermore, always leave room for cross-training. There may be things you can teach your friend to up-skill them and help ease off the burden from you.

Communicate

Tips for starting a business with a friend

According to Ryan Robinson, a ‘lack of communication is a top killer of friendship-driven businesses’1. And from first-hand experience, I can see why. Periods where Francesca and I have spoken the least have been YES GURL’s rockiest, whereas periods where we’re living and breathing YES GURL have been our best!

You tend to think that because you know someone so well that you’re always on the same page. WRONG! A lack of communication can and will confuse. There have been instances where Francesca and I have been forced to come face-to-face with trickier subjects we hadn’t discussed and were shocked to find we had opposing views. When it comes to harder business decisions especially, you won’t always share the same perspective. So talk it out and learn to resolve conflicts. Otherwise, it will come to bite further down the line.

Separate business and pleasure

When mixing business with pleasure, it’s easy to blur the lines in your business AND personal relationships. How we’ve worked around this is that we have two WhatsApp chats: one for everything Ann and Fran, and one for everything YES GURL. Being competitive, we penalise each other if someone messages in the wrong chat so that helps to keep the two set apart. We also separate our personal finances by having a business account. Do not mix the two.

We have weekly meetings dedicated to the business, but much more, we make out time to hang out and still be friends. As important as YES GURL is to us, our friendship comes first. The authenticity of your friendship shouldn’t be replaced by what feels likes a business partnership. Otherwise, you’re at risk of losing a good friend.

Talk about an exit strategy

Friends can be naive and rarely account for a worst-case scenario *shamefully raises hand* – we’re working on this! But I’d like to stress that you should at least discuss an exit plan, especially if money and investments are involved.

With 90% of startups failing in 2019 due to factors that include bad partnerships, a lack of research and running out of money2, an exit strategy is imperative. A failed business can cause chaos, especially if a friendship is involved. So research, discuss and write down the aftermath of this hopefully unlikely event. It can do wonders to save your relationship if things don’t work out.

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Written by Annette Christian

Illustrated by Francesca Mariama