Is it a great idea starting a business with your friends?

Betterment of the export sector
November 26, 2019
WHY DON’T MOST PEOPLE START BUSINESS
December 4, 2019
Show all

Is it a great idea starting a business with your friends?

A common interpretation of ‘work-life balance’ is that working as well as enjoying your life should be mutually exclusive. That’s why founders are often advised to avoid starting a business startup with friends also family — that business startup could turn those relationships awry. Though burning connections with the people you love as well as respect is indeed a risk that comes with starting a business startup together, friends, family bring value that no other partners can. Also in that sense, they sometimes can be the best people to starting a business startup with. I spoke with several successful founders that made it work, also from their experiences, I gathered three unparalleled benefits of starting a business startup with friends plus family.

Trust is a given

If it comes to selecting also firing, delegating roles, growth strategy, as well as other important aspects of building a successful company, trust between co-founders is pivotal. Without it, unnecessary conflicts ensue, furthermore they distract from what matters. To take a realistic part of this idea, I chatted with Ben Lerer, the founder, including CEO of Group Nine Media also Managing Partner at Lerer Hippeau Ventures. He said to me: “I am so lucky to be smart enough to work with my dad at Lerer Hippeau as well as my sister at Group Nine. Not only are they both incredibly smart as well as fun to be around, but there's nothing more important in starting a business startup partnership than trust furthermore who can you trust more than family?" Because Ben employs over 400 employees at Group Nine also works with over $120 million in the capital at Lerer Hippeau, he can’t do it all alone. He has to trust that those he works with are both willing moreover able to get the job done, also when he’s working with family, that trust is a given.

It makes communication more efficient

When founders get into conflicts with one another, it’s often due to some kind of misalignment of values or an outright misunderstanding. When you decide to work together with friends including family, at least some of these misunderstandings can be avoided altogether simply because you know one another on a much deeper level. This was especially the case for Kara and Theo Goldin, the husband-wife pair that founded furthermore grew Hint Water into a $90 million business startup. She informed me: “We understand the responsibility as well as we encourage each other to thrive in business startup. We both acknowledge that we are each better at certain things but together we make an effective team. That kind of trust allows for communication to flow more swiftly also accurately.”

Your values are closely aligned

One of the most significant time sinks, when there are many partners in a business startup, is having drastically distinctive values. Of course, discussions around those values aren’t a waste of time, but when co-founders share inherent values, it’s a huge leg up. Justin Lafazan and Dylan Gambardella, friends as well as co-founders of Next Gen Summit, an online community of over 3,000 members furthermore annual conference held for up as well as coming entrepreneurs, are an example of this idea. They informed me: “A main goal we share at NextGen is to build relationships our #1 mission. We ensure everyone in our network — if a society member, partner, or investor — feels valued at all times.” When co-founders agree on fundamental values for their company, that level of mutual understanding makes formulating strategy furthermore company direction a far more straightforward as well as the powerful process.

A common interpretation of ‘work-life balance’ is that working as well as enjoying your life should be mutually exclusive. That’s why founders are often advised to avoid starting a business startup