Sunday, September 28, 2008
Friendship and Business Don't Mix
Like oil and water, business and friendship generally don't mix well. Most business ventures born out of friendship usually ends up with partners not only going their separate ways, but also end the years of genuinely built up friendship. When friends go into business, the usual barriers of being business partners like the negotiations, contracts, due diligence and ownership issues usually get's thrown out of the window. You have known each other for years, mag kumpare kayo, what could go wrong right? Plenty in you ask me, it's these times when we let our guard as well as common sense down that makes for a highly volatile business situation.
A difference in opinion, miscommunication or just plain greed from one of the friends involve in the business will make your venture go sour. It's when money is involved that you suddenly realized the friend since childhood you though you knew morphs into this complete stranger. Business really stresses your friendship to the limit especially if it's not doing well. You see each other differently by then and even might end suing each other. But some business ventures between friends do end up succeeding so it's very important to make written contracts and hammer out whatever issues that may come up before even starting.