An accomplished business leader with over two decades of experience in the global freight shipping industry, David Kiger regularly shares entrepreneurial advice and insights on his professional blog, Business Chat. He recently offered a host of crucial considerations for individuals planning to go into business with friends or family members.
First and foremost, he advises these professionals to collaborate on setting clear goals and expectations, ensuring that all parties involved understand, accept, and are well suited to their roles in the new venture. During this process, it is critical to put all agreements on paper and seek the guidance of a legal expert to draft legally binding documents. During this key planning period, business associates should also decide whether to structure their new firm as a partnership, limited liability company, corporation, or other business configuration.
In addition, business partners with close friendships or familial ties should strive to keep work separate from their personal relationships. It is also important to maintain honest, reasonable expectations of both yourself and your business associates. However, professionals should also accept that both failed and successful business ventures with friends and relatives may result in personal conflicts and relationship strain.