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Doing business with a family member vs a friend

Discussion in 'General Business and Entrepreneurship' started by ReadmeByAmy, Nov 19, 2015.

  1. ReadmeByAmy

    ReadmeByAmy Entrepreneur

    If you are planning to have a business who do you think would be a good business partner...Is it doing business with a family member or doing business with a friend?...

    When it comes to who you can trust better and who can be with you and support you whether you lose or succeed in the business who do you think is the right person that can be your business partner?

  2. dyanmarie25

    dyanmarie25 Entrepreneur

    Well, it really depends on the situation, and who among them would agree with your business idea/plan, and who is much closer to you. As for me, if ever I am going to choose a business partner, I would definitely pick my best friend over anyone, even over my family members. We just think alike, and we have the same goals.
  3. T J Tutor

    T J Tutor Administrator Entrepreneur

    I've done both and there are similar threats as well as similar advantages. As long as you both behave as business people and never use your relationships as leverage then you will be okay. This occurs quite a lot out in the world.
  4. ReadmeByAmy

    ReadmeByAmy Entrepreneur

    When I was not yet still married and had a business of my own I had experienced already doing business with a family member and with a friend too. I may say that I had different experiences with both of them but somehow the business turned out good until I decided to stop the operation of my business because my husband does not like me to be working when we got married. What I had learned is that if both of you had trust and is loving what you are doing for the sake of the business I think doing business with a family member or a friend is just the same and is just okay.
  5. 111kg

    111kg Entrepreneur

    When it comes to small businesses, then yes, starting out with a friend or a relative can be great, as long as there are some rules that are not being broken. As long as they don't try anything sneaky (like trying to rule the company on their own) and willing to work as much as the other partner(s), then yes, it's awesome to build something from scratch with a relative.

    However, not everybody is suitable for this type of joint venture. People will often try to abuse your kindness or your vigilance. For instance, my cousin thought that my father would not notice the cups that were missing every single day at the coffee shop my dad owns. He used to steal 6-8 Ron (about $2 :)) ) per day from my father, and at some point, the old man got fed up and fired him in front of his brother (my cousin's dad). Of course, not everybody will do the same, but there is a chance that must not be neglected.
    ReadmeByAmy and T J Tutor like this.
  6. Apolloniac

    Apolloniac Entrepreneur

    Whatever you choose just make sure you have clear boundaries and limitations when it comes to mixing business with personal relationships. Get a contract down and be aggressive about it. You can't trust word of mouth or honor or what have you when there are no clear goals set. Sometimes when it gets bad like what my uncle has experienced in his business with his brother, you have to make hard decisions like which is more important to you the business or the relationships with your sibling? Just be wary my friend.
    T J Tutor likes this.
  7. ReadmeByAmy

    ReadmeByAmy Entrepreneur

    You are absolutely right! I remembered before I had a friend who had a business and she had a relative whom she had entrusted the financial aspect of her business. Because before she thought that a family member or a relative is the the one whom she can give her big trust. What happened in the end she realized and she cannot imagined that her relative will be the one who will be the reason for the downfall of her business.

    Sometimes in a business venture we can really never tell who is the right person whom we can trust and whom will not abuse our kindness. But like what you said not everybody will do the same. And all we have to do is to be careful and to think twice before we engage ourselves to do business with anybody be it a member of your family or your friend and every situation differs.

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