Do Business With Friends, Why Not?

BizGuru.me – Doing business with friends or non-friends is basically the same thing. By doing business with everyone, there is always the potential for success, but there is also the potential for failure.

There is nothing wrong with doing business with friends. Even in any way, business with friends have several advantages. Among other things, we already know the character of our friend, so it’s easier for us to work together.

There are many successful business stories made with friends, although of course, there are also stories of unsuccessful problems. In this case, many giant companies, some of which are the result of cooperation between friends and friends.

Microsoft, for example, the largest software manufacturer in the world, has been built by the collaboration of two close friends since childhood, Bill Gates and Paul Allen in 1975. Twitter, a company in the field of social networking services and An online microblogging founded in 2006, is also a collaboration of two friends Evan Williams and Biz Stone. Similarly with the Intel microprocessor technology company, founded in 1968, results from the cooperation of three friends, namely Gordon Moore, Andy Grove and Boy Noyce.

Then there is Google, a giant company in the field of Internet services and products resulting from the collaboration of two friends, Larry Page and Sergey Brinn in 1998. In the same way Apple, a multinational technology company founded in 1976. Two friends, Steve Jobs and Steve Wozniak.

In addition to some of the giant companies mentioned above, there are of course many other large companies based as a result of cooperation with friends. Their business can succeed because it is done with friends. Perhaps it would be a different story if they did not work with friends.

Indirectly those who have managed to develop business with their friends, who have been mentioned above, inspire us, for anyone to “do not be afraid” to do business with friends. On the other hand, doing business with friends is fun and creates a success.

But of course, doing business with friends should not be negligent. Because there are things at stake when we do business with friends, namely friendship itself. If business fail, it is not impossible for friendship to be carried away.

For business to friends receive a success as expected, we need to pay attention. There are at least six things we need to pay attention before starting a business with friends.

Pay Attention to 6 Things Before Starting a Business With Friends

Take a look at your friend’s character

This is important because the characters of our friends can not all agree if we are invited to do business together.

As AMIS, of course, we already know what is our friend’s character. Maybe our friends are workers and resilient, but not honest. Our friends can also be honest and stubborn, but selfish.

We should not force us to do business with friends who have characters who can hinder the success of businesses. As the character of a less honest and selfish friend, for example, will certainly result in the success of a company that is done together.

Make a commitment from the beginning

Before starting a business with friends, first take a commitment as a Memorandum of Understanding.

For example, what is the format of the company that will be executed, the business domain being made, the division of tasks, including the sharing of profits, etc. This commitment should be considered clear and detailed as possible. Otherwise, it could be a problem in the future.

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Trust each other

Its very important. Because if friends who do business together do not trust, there will be a mutual suspicion.

If in a business collaboration, there is no mutual trust, an uncomfortable, clumsy or uncomfortable feeling will appear. If this is the case, the company will certainly not work well and fail.

Transparency

This is no less important. Transparency must be carried out by all parties involved in business.

As the amount of the initial capital, the purchase price of the goods, the sale price of goods and others. This includes the amount of business profits or earned benefits.

Sharing clear and proportional benefits

This problem is a very sensitive issue. If this is not done, there will be jealousy one towards the others.

The basis of this is the second point. The amount of each profit must refer to the initial commitment.

The contribution of each person to the joint venture may vary. For example, in terms of the contribution of the amount of the capital given by each, the severity of the task carried out by each or other things that differentiate from one another.

Professional

This means we have to separate “business” and “friendship”. “Business” and “friendship” are two different things.

These are six things we need to pay attention before starting business with friends. This is for the corporate race to reap success and not damage friendships. So, doing business with friends, is not a problem. Do business with friends, why not?