We have all been there – we’ve been sitting with friends over a drink, a spot of lunch or at work and suddenly had a brainwave for a business. It could be that you’ve discovered a way to solve an inconvenience, or perhaps you’ve got a mutual love and passion for something and can see a way to make it a job. That eureka moment between you and a friend hits and you wonder if you are onto something big. But coming up with an idea and actually executing it are two completely different things. What does it take to bring it to life? And how do you do so while ensuring your friendship also stays intact? Keep on reading to find out more and get inspired!
Ensure You Are Both Serious About the Idea
The first thing you need to ensure is that you’re both serious about starting your business. It can be all fun and games to think about and discuss, but there is no point going into it if you aren’t serious about it. Have a serious discussion about how it will work, what it is going to consist of and what you’re both prepared to give to the business. Will it be something you do full-time? Or will you do it part time at the beginning until it is bringing in some money and so you can check it actually works?
Figure Out What Capital You Will Need and How You’ll Get This
Let’s face it, no business can do well without money behind it. You need funds for everything from building your website, to creating your product, making printed marketing materials and more. In order to get an accurate idea of how much money you need, sit down and write a list of every single cost you can think of, when this will be needed and how much capital you will need to get started. You then need to figure out how you will get this. Do you have the money already? Or will you need a business loan? If you need to get a loan, you will need a strong business plan and projections for growth in order to be considered.
Get Contracts Drawn Up
While you never want to think about a friendship turning sour over business, sometimes things happen that you can’t foresee and it’s better to be prepared. Have a contract drawn up that will detail what will happen in the event of the two of you deciding to part ways or if you want to sell the business in the future. Sorting this out now means that if the relationship does break down or if one of you wants different things, you won’t be driven by emotion and do things you regret when it comes to the company. It means you will both get a fair deal out of it which is so important as a business owner when you’ve put your money, time and effort into something like this.
Have a Solid Business Plan
A business plan is vital if you are wanting to succeed. You need to detail everything in here from what you plan to make, how you plan to do it and the numbers you see yourself achieving in the next year, five years and perhaps even ten years. Detail how you will do this, your branding, marketing and your overheads. Anything that will help indicate what your business is aiming for will help this and help you to grow too.
Work On Your Marketing
Marketing is one of the most important aspects of running a business with a friend and it is what will get you seen by those that matter most. After all, you could have the best plan for starting a company in the world, but if nobody gets to see it, there’s no point. One of the first things you should do once you’ve got a business name is to start looking for web designers in your local area. They can help you to build a website that will attract customers, get your information out there and really promote your company on search engines. They can also help with things such as advising you on brand colors and having a website that is optimized for SEO. It’s a good idea to have a landing page for your company where people can sign up to your newsletter before you start so you can drum up some interest and build suspense, keeping people in the loop so they are excited for your business to finally launch.
Try and Keep Business and Friendship Separate
While it can be difficult, try and keep your business and friendship separate. Make time to go out the two of you and don’t talk about work when you are there. Instead just have fun and remember why you know each other in the first place and how well you get on. This can help stop your friendship from feeling like work where you only talk about your business. Keep interested in other aspects of each other’s lives and ensure you don’t lose the magic of what keeps you both getting along with each other.
These are just a few things that can help you when it comes to starting a business with a friend. Starting a company and working with someone you know and trust is a fantastic thing to do, you just need to do it properly to ensure you don’t ruin your friendship and get the most from it you can. Whether you start off doing it in your spare time or go all in and quit your jobs it is completely up to you, how much capital you need, the amount of things you need to do to get started and more. What are some top tips you have for starting a business with a friend? Let us know in the comments below, we’d love to hear from you.
