Choosing your business partners wisely

Alright so I was talking to a friend of mine who happens to be a business owner, and all of a sudden I found myself captivated by thoughts revolving around the theory of selecting the people you do business with. It isn’t an easy process and can really be detrimental to you in the long-run if you are extremely naive. I feel that the general trend is to pair up with people who you are very familiar with i.e. people such as your best friend or sibling, when what they don’t realize is that this route always tends to backfire.

The reason why I assert the above was because I was advised by a former co-worker of mine to never do business with your siblings, cousins, or best friends only because they know who you are extremely well, and so they can either take you for granted or they can manipulate you out of the business due to greediness and additional pertinent factors. A very common phenomenon when partnering up with your best friend/close friend is when you put in more than 80% of the work and they’re just lounging in the sidelines making money for themselves, bartending, coaching, or doing whatever. But what they fail to realize is that they’re not investing any time or energy into the welfare of the business or its growth! They’re only there for reputation-building purposes!!

For example, let’s say two close friends decide to open up a math tutoring center. One comes from an education background while the other comes purely from a business background. In the first six months, the former math teacher is out there tutoring privately and through other agencies to generate some personal income, while the business guy is out there working tirelessly maintaining the current wave of customers while trying to acquire new customers to stay floating, so things may seem hunky-dory for now, and then all of a sudden the secret clashing that have been going on between the duo start to become visible until they finally decide to part ways. This is because the teacher is only there to sell their expertise to people and undermine the entire business process and the input expected to be put in by the respective party. The business guy becomes agitated as they both have opposing views on running their business and meeting each other half-way and this only destroys the relationship and the friendship you both have maintained for years.

Yes, being business partners can ruin a beautiful friendship, so if you’re somebody who’s about to start a venture, think twice before making the decision to form an alliance with somebody who’s close to you unless your desire is to take the friendship to the grave! The best solution would be to attend conferences or seminars where like-minded┬ápeople like you with similar aspirations lurk around, and to be-friend people who share similar visions as you. Just make sure you solidify the trust first!

I’ll come up with another scenario as I have so much to talk about regarding this topic! As I said building a successful venture or franchise starts with the type of people you partner up with as well as the team you work with!