Getting Into Business With Family, Friends, etc. Here’s what you need to know…
In today’s Wisdom Wednesday…
So today I’m working on helping one of my clients untangle a business entanglement with a good friend who they went into business with a few years ago. Due to this good friend lacking business savvy and allowing their ego to avoid listening and learning…it has caused all sorts of issues in the business.
Getting into business with friends, family, spouses, lovers, etc. can sometimes work out to be a good or bad thing. No one can predict the future. Over the years I’ve seen all kinds of situations when it comes to being business Partners and as an experienced Business Consultant, I will be the first to tell you that it is always wise to have contracts and agreements in place…Ion care “who” you are getting into business with.
You see..when we all come up with these brilliant ideas and unite our talents, skills and abilities to form a business partnership and begin to sell our services or products to consumers…each person comes to the table with different business goals as well as the “way in which they want to operate the business. Some things you may agree on…some things you will disagree on but will more than likely be able to come to a middle ground.
Different responsibilities come in to play when it comes to running and operating a business and sometimes you will find that one partner is doing more than the other and not pulling his/her weight.
Then there’s the money situation…the divvy of the income and expenses…who is going to manage the money…also other matters like can a partner sell their share to someone else…or what happens if it’s a married couple and you get divorced…or even worse…God forbid…what happens to that Partner’s share of the business if one of the Partners passes away.
The main point that I’m trying to establish here is just because you’ve known someone for years…doesn’t automatically qualify them as someone to be in business with. So do yourself a favor and make sure you set up Agreements and Contracts. First of all, if you’re establishing an LLC or a Corporation for this Partnership…Agreements and Contracts are mandatory anyways…but many people take this for granted because they’re basing how long they’ve known someone and/or basing it on their affiliation to the person…big mistake!
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As a Tax Strategist, Consultant and Educator, I’ve been helping other Entrepreneurs (and Individuals) around the U.S. just like you, save thousands of their hard-earned tax dollars, increased their refunds, and solve multiple tax problems. Beyond taxes, I am your “GPS” to starting and growing your own business. Be sure to download my ebook Taxes & The New (or “Early-Stage”) Entrepreneur: What You Need to Know