Is It Time to Break up with Your Business Partner?
By Rae Steinbach
From Funding Circle:
People start new businesses with their friends or families for a variety of reasons, but this can lead to a unique set of problems that most conventional businesses don’t encounter. This approach makes it easy to share successes, but mixing your personal and business lives can get complicated very quickly.
If you’re concerned about your business—or more specifically, your business partners—it can be tough to know when to walk away. These are some of the biggest red flags to look out for if you’re worried about your ability to stay in business with people close to you.
Difficulty Maintaining Separate Roles
Businesses typically have very defined roles for each member of staff, making it easy to create a reliable chain of command and distribution of duties. When working with friends, on the other hand, it’s easy for these lines to become blurred over time if you don’t assign clear responsibilities in advance.
If one of your colleagues starts to overstep their boundaries, you should always talk to them openly and honestly before doing anything rash or irreversible. On the other hand, if there are differences between you that don’t seem resolvable, the best decision may be to simply walk away.
Your Family and Friends Think Something Is Wrong
It’s often easier for us to believe that everything is ok than it is to convince the people closest to us. Comments from your friends and family may be the first sign that your job is causing mental, physical, or financial stress in your life. Instead of brushing off their concerns, understand that they want what’s best for you.
A difficult stretch at work isn’t always enough of a reason to walk away entirely, but you may reconsider your position if this continues for a longer period of time. Try to be open about these issues with your family and friends and get their input if you’re thinking about making a change.
You’re Putting Too Much Money into the Company
What exactly is too much money obviously varies from person to person, but a constant need for new investment usually isn’t a good sign. This can be an especially messy situation in businesses between friends, as personal dynamics can play a major role.
If your company is spending money with no clear return on investment, try to right the ship and look for ways to budget more effectively. Without a clear plan of action and a realistic path to viability, you may not see a future with your current business.
Starting a company with friends or family can be a rewarding experience, but it’s important to be prepared for some of the most common challenges people face in this situation. If you’ve noticed any of these concerns in your own business, it may be time to reconsider your current operations and take a closer look at your company’s future.
Rae is a freelance editor at Funding Circle. She is a graduate of Tufts University with a combined International Relations and Chinese degree. Rae is passionate about "business law, international marketing, and writing (of course)." The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the New York SBDC or Funding Circle.
From Funding Circle:
People start new businesses with their friends or families for a variety of reasons, but this can lead to a unique set of problems that most conventional businesses don’t encounter. This approach makes it easy to share successes, but mixing your personal and business lives can get complicated very quickly.
If you’re concerned about your business—or more specifically, your business partners—it can be tough to know when to walk away. These are some of the biggest red flags to look out for if you’re worried about your ability to stay in business with people close to you.
Difficulty Maintaining Separate Roles
Businesses typically have very defined roles for each member of staff, making it easy to create a reliable chain of command and distribution of duties. When working with friends, on the other hand, it’s easy for these lines to become blurred over time if you don’t assign clear responsibilities in advance.
If one of your colleagues starts to overstep their boundaries, you should always talk to them openly and honestly before doing anything rash or irreversible. On the other hand, if there are differences between you that don’t seem resolvable, the best decision may be to simply walk away.
Your Family and Friends Think Something Is Wrong
It’s often easier for us to believe that everything is ok than it is to convince the people closest to us. Comments from your friends and family may be the first sign that your job is causing mental, physical, or financial stress in your life. Instead of brushing off their concerns, understand that they want what’s best for you.
A difficult stretch at work isn’t always enough of a reason to walk away entirely, but you may reconsider your position if this continues for a longer period of time. Try to be open about these issues with your family and friends and get their input if you’re thinking about making a change.
You’re Putting Too Much Money into the Company
What exactly is too much money obviously varies from person to person, but a constant need for new investment usually isn’t a good sign. This can be an especially messy situation in businesses between friends, as personal dynamics can play a major role.
If your company is spending money with no clear return on investment, try to right the ship and look for ways to budget more effectively. Without a clear plan of action and a realistic path to viability, you may not see a future with your current business.
Starting a company with friends or family can be a rewarding experience, but it’s important to be prepared for some of the most common challenges people face in this situation. If you’ve noticed any of these concerns in your own business, it may be time to reconsider your current operations and take a closer look at your company’s future.
Comments