Is it a bad idea to do business with friends?

Many people warn against hiring or partnering with friends, but it’s not always a bad thing. But not everyone agrees—others have had a much better experience working with a friend. And if you go about it the right way, doing business with your friends can deepen your relationship and make work way more fun.

Is it better to work with friends?

It’s been shown that working with friends actually boosts employee satisfaction by 50\%, and people that share a job with a best friend are seven times more likely to engage fully. Friends at work make work better.

Why you shouldn’t go into business with family?

When you do business with family and friends, at some point you’ll be with them at a barbecue, birthday, cocktail party, or wedding. If there’s tension (or worse) brewing between you, aside from your own discomfort, it will affect — and potentially infect — those around you.

Is it important to make friends at work?

Research shows that employees who get super close with their co-workers are happier at work, more engaged, better with clients, do better work, and are less injury prone. In comparison, Gallup reports “those without a best friend in the workplace have just a 1-in-12 chance of being engaged.”

Can you start a business with a friend?

Friendship Does Not Translate into Business Compatibility When starting a business venture with a friend or beloved family member, it is tempting to believe that your existing relationship will easily translate into a successful commercial union.

What are the risks of having a business relationship with friends?

This almost always requires one partner to take an authoritative, leading role, which can create imbalance in an existing friendship and ultimately cause unrest. There may be a tendency among friends and family members to avoid this entirely, but this may expose the business to a critical lack of leadership. 4.

Is it better to have a best friend as a business partner?

Most of the time, friends share the same interests general belief systems. As birds of the same feather, you and your best friend business partner will likely find it easier to agree on the literally thousands of crucial decisions coming your way, despite having different personal preferences when it comes to details.

What happens when friends and family partner in business?

According to Wayne Rivers, who is the President of the Family Business Institute, this can cause a significant issue when friends and family members partner in business. More specifically, it often leaves faults unaddressed and causes operational issues to continue longer than they should.