Should you go into business with your best friend? [Checklist]
Are you considering going into business with your best friend?
It's a decision that can be full of excitement and potential, but it's essential to understand the risks and rewards of such a partnership.
Going into business with a friend could be a winning idea destined to make you millions, OR it could be one of the biggest mistakes of your life.
I've seen it go both ways, so let's dig deeper to see if this could make sense for you.
Listen to the podcast episode, then check out my practical checklist below detailing everything I would consider before going into business with someone else.
(I recommend forwarding this article on to your potential new business partner friend 🙂)
Even if you're not considering working with a friend, this article will help you explore where more explicit boundaries, expectations, or structures could benefit other areas of your life and business.
Here's my checklist to ensure any new business partnership works for everyone and helps you chill and prosper.
1. Do you really want a partner?
First, be honest with yourself. Do you want to have a business partner, or do you think that that's how you'll get over your procrastination and fear?
Make sure you are going into a partnership out of true alignment and not just because you are scared to do it alone.
Are you secretly craving someone to hold your hand and give you the nudge to make your business happen? Would this be better coming from a coach, mentor, or mastermind than a partner?
Being honest with yourself about your motivations for entering a partnership is essential to ensuring the success of the venture.
Ask yourself why you need to bring a partner in - is it because you don't have the skills or knowledge?
Maybe having someone to hold you accountable will help you stay motivated and on track.
Are you entering into the partnership to make money or to enjoy the experience of working together?
Knowing what you want from the partnership will help you make more informed decisions about who to partner with and how to structure the partnership.
2. Do you have complementary personalities?
You may want to work together, but can you?
Do you have similar skills, experience, and knowledge?
Do you have similar money personalities? Are you looking for someone with the same Money Archetype as you, or do you need a different perspective?
Take the Money Archetypes Quiz to understand your individual strengths and weaknesses with money.
The Quiz will help you recognize your dominant Archetype and how to design your business model and role to leverage your strengths.
For example, if you are an Accumulator, you may be great with research and making the best decision. However, you may be fearful with money and prone to analysis paralysis.
On the other hand, if you are an Alchemist, you may be an idea generator but not a great completer finisher.
If you have the Celebrity archetype, you may be a great fit as the face of the business but may struggle with the unsexy stuff behind the scenes.
Knowing your strengths and weaknesses is important to understand how to work together effectively in a business partnership.
This can help you create a shared language and expectations and design a business that profits from your strengths.
3. How will the partnership work?
It is essential to have an honest conversation with your partner about workload, money, and other commitments.
This should be done before entering into a business partnership to ensure that both parties are on the same page.
Talk through the details of the partnership, such as who will do what and how decisions will be made.
It is also important to discuss money, who will be putting in the money, and who will be responsible for the business's finances.
Additionally, other commitments such as family and side gigs should be discussed to ensure both partners have enough time and energy to devote to the business.
Finally, it is vital to have an open conversation about weaknesses and strengths to ensure the partnership is complementary and effective.
If necessary, bring in an outside party, such as a business coach, to facilitate the conversation.
Setting clear expectations at the start will help avoid conflict and confusion once you're up and running.
4. What support or outsourcing will you need?
Suppose there are tasks that neither of you wants to do or sit outside your natural zone of geniuses. In that case, it's easier to outsource them than let resentment brew because you're doing something you hate.
What support should you invest in to give the partnership the best possible chance of success?
If both partners have similar archetypes, it is important to outsource tasks to fill gaps in the business.
This can be done by hiring a financial advisor, bookkeeper, accountant, business coach, strategy coach, or any other type of professional who can help make decisions and provide guidance.
Outsourcing tasks can also help to prevent power clashes, as the third party can provide an objective opinion and help to keep both partners accountable.
Additionally, outsourcing can help to prevent burnout, as both partners can offload some of their workload and focus on their respective tasks.
5. Assign roles and responsibilities based on your strengths.
If you're going into business with a friend or partner, roles should be assigned based on your strengths and experience.
It can be helpful to sit down with a business coach to review the details and ask some hard questions each partner might not have considered.
This could include things such as who will be the face of the business, who will do the research and make decisions, how money will be handled, and how to dissolve the partnership if needed.
Knowing each partner's strengths and weaknesses can help ensure that the right person is working on the right tasks and that the partnership is balanced and sustainable.
Then take the time to create a contract outlining everyone's roles and responsibilities can help to protect the business and ensure everyone is on the same page.
Going into a business partnership with your best friend can be an exciting and rewarding experience, but it is important to understand the risks and rewards.
Don't be afraid to take the leap and partner with your best friend - with the right preparation, you can create a solid and successful business partnership.
I love to hear some success stories of different Money Archetypes working together and whether going into business with a friend is something you're considering.
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