How Do I Know If My Friend Is a Good Business Partner? 16 Signs to Watch

We’ve all had that brilliant (or not-so-brilliant) moment where we thought, “Hey, I could start a business with my best friend!” Maybe you were halfway through a Netflix binge or ranting about how your boss has the leadership skills of a potato, and suddenly, the lightbulb went off: “I could totally do this… with my friend!”

But here’s the thing—mixing friendship and business can either turn into an epic success story or blow up in your face like the worst kind of fireworks.

Sure, they’re the person who knows all your bad jokes and still laughs. But does that mean they can balance a budget? You trust them to keep your secrets, but can you trust them to keep track of a client’s payment? These are the real questions you’ve got to ask yourself before you run off to register that LLC together.

Just because someone’s fun to hang out with doesn’t mean they’ll be a solid business partner. And this is where things get tricky—like the “who ate the last slice of pizza” level of tricky, except with a lot more at stake.

So, how do I know if my friend is a good business partner?

What’s at Stake When You Start a Business with Your Friend?

You’ve got a lot on the line here—your friendship, your finances, and, oh yeah, your sanity. Starting a business is hard enough without adding emotional baggage into the mix. And if things go south, you’re not just losing a partner, you’re losing a friend.

Visualize the awkwardness of trying to “unfriend” someone in business—except it’s not Facebook where you can just hit a button. No, this is the real deal, and once you’re in, it’s not so easy to get out.

You need to think about the potential risks—like disagreements over vision, work ethic, or who gets to control the Spotify playlist during work hours. These things can seriously test your friendship. If you’re not careful, what started as a dream could turn into a nightmare faster than you can say, “divorce lawyers.”

But hey, it’s not all doom and gloom. In fact, some of the best businesses were started by friends (just don’t ask Mark Zuckerberg’s former buddies about that). The key is figuring out if your friend has what it takes to make the business side of things work.

Now, let’s dig deeper.

How Do I Know If My Friend Is a Good Business Partner?

You’re wondering how you can know—really know—if your friend is cut out for the world of entrepreneurship with you. Whether it’s your college buddy who helped you cram for finals or your childhood friend who knows all your embarrassing stories, the idea of working with someone you’re close to can seem like a shortcut to success.

But before you hand them the title of “co-founder” and start ordering matching business cards, here are 16 critical signs that your friend might just make the perfect business partner—or, on the flip side, that you should run for the hills.

1. They Share Your Vision 

A good business partner needs to see the big picture the same way you do. Do they share your passion for your business idea? Are they just as excited about the mission as you are? You want someone who’s on board with your vision but not afraid to offer their own perspective.

You don’t want someone who just agrees with everything you say. Sure, it might be nice to have someone who never challenges you—until you realize that’s how bad decisions get made. If your friend isn’t afraid to call you out when you’re about to do something dumb (like spending all your startup funds on swag before you’ve even launched), that’s a good sign.

A great business partner is someone who can say “no” when it counts.

• They challenge your ideas with constructive feedback, not blind agreement.
• You both have the same end goal but might see different paths to get there.
• They’re passionate about the business and not just in it to help you out.
• They can think independently and offer fresh, innovative perspectives.

2. They Have Complementary Skills

You can’t be good at everything. The best business partnerships are those where both parties bring something different to the table. Maybe you’re great at coming up with ideas but terrible at crunching numbers. Or maybe your strength is marketing, while your friend is the organizational mastermind.

If your friend has skills that fill in the gaps where you’re lacking, it’s a win-win. The dream team isn’t two people who are exactly the same—it’s two people whose abilities complement each other.

Plus, let’s be honest, doing all the work yourself would not be fun. Having someone who’s got your back in areas where you’re weaker? That’s gold.

• Their strengths fill in the gaps where you might fall short.
• They bring a unique skill set that elevates the business beyond what you could do alone.
• They aren’t trying to outshine you, but rather to grow alongside you.
• You both recognize that your combined talents make the team stronger.

3. They’re Reliable and Follow Through

Can you count on them? Running a business means there will be times when things get tough—when deadlines are tight, or when you’ve got ten tasks to do and only five hours to do them. Can your friend handle that pressure? Are they the type to roll up their sleeves and get the job done, or are they the person who bails when things get tricky?

You don’t want to partner with someone who ghosts when the going gets tough or forgets important tasks because “something came up.” If your friend has a history of being flaky or unreliable, they might not be the partner you need. In business relationships, consistency is key.

• They don’t just talk the talk; they deliver on promises.
• You don’t have to chase them down to get tasks done.
• You can trust that when they commit to something, it’s as good as done.
• They understand the importance of consistency in building a business.

4. You Can Communicate Honestly (Even When It’s Uncomfortable)

If you’re already finishing each other’s sentences, great. But when it comes to business, it’s not simply small talk or reminiscing about old times. You need to be able to have the tough conversations.

Money issues, disagreements over business strategy, or even just calling out lazy behavior—if you and your friend can’t talk openly about these things without it turning into a disaster, you might be in trouble.

A good business partner is someone you can argue with productively, not someone who shuts down the moment things get real.

• You can have difficult conversations without things getting personal.
• Neither of you sweeps issues under the rug just to avoid conflict.
• Feedback is honest, straightforward, and aimed at improvement, not criticism.
• They’re willing to discuss uncomfortable topics, from finances to failures.

5. They’ve Got Thick Skin

Business isn’t all rainbows and puppies. Sometimes, things will go wrong (and they will, trust me). There will be failures. If your friend can’t handle criticism or gets defensive every time you bring up a problem, you’re in for a world of frustration.

You need a partner who can take feedback without taking it personally—someone who can bounce back after a setback without sulking or quitting.

Thick skin is essential. Can your friend handle high-pressure situations without falling apart? If they’re emotionally stable and can keep their cool in the face of adversity, that’s a green flag.

• They don’t crumble at the first sign of critique or bad news.
• They can handle tough feedback without getting defensive.
• They see failures as lessons, not personal attacks.
• They don’t let emotional reactions cloud their judgment.

6. They’re as Committed as You Are

It’s not enough for your friend to just share the vision and like the idea of starting a business with you—they need to be just as committed to the grind as you are.

If you’re putting in 12-hour days and they’re barely showing up for 3, that’s a recipe for resentment. You don’t want to be carrying the weight of the business alone while they’re treating it like a side hobby.

Are they ready to give as much as you are? If they’re not fully committed, you might want to reconsider. Business partnerships only work when both parties are equally invested.

• They’re just as willing to sacrifice personal time for business growth.
• They aren’t constantly looking for shortcuts or easy wins.
• Their level of commitment matches yours in effort and dedication.
• You never feel like you’re pulling all the weight on your own.

7. They Handle Money Like an Adult

Everyone has that one friend who always “forgets” their wallet or takes six months to Venmo you $20. Now, visualize that friend in charge of your business finances. Yeah, scary, right?

If your friend is the type who’s still struggling to manage their personal budget or thinks maxing out credit cards is a cool move, it’s a hard pass.

A good business partner needs to be financially responsible—not just with their own money but with yours and the company’s. If they can’t even save up for a weekend trip without borrowing from their future self, how are they going to handle payroll, taxes, and reinvesting profits?

• They understand the importance of budgeting and financial planning.
• They don’t make reckless spending decisions that put the business at risk.
• They keep personal and business finances separate.
• They’re transparent and responsible when it comes to handling company funds.

8. They Don’t Ghost You When Things Get Tough

There will be times when things get tough—sales are down, clients are impossible, or some random crisis pops up that makes you question your life choices.

If your friend has a habit of disappearing when things get difficult (or even just emotionally checking out), they probably won’t make a great business partner.

You need someone who sticks around when the going gets tough, not someone who suddenly “needs a break” just because the numbers don’t look so good that month.

• When challenges arise, they face them head-on rather than disappearing.
• They’re proactive in problem-solving, not avoiding issues.
• They don’t bail when things get stressful—they dig in and get to work.
• You don’t have to question their loyalty or dedication when the going gets tough.

9. They Can Handle Accountability Without Losing It

Accountability is huge in any partnership. If your friend messes up, they need to own it. No excuses, no finger-pointing, no hiding behind “I thought you were going to do that.”

A good business partner takes responsibility for their mistakes—and, more importantly, learns from them.

But if your friend is someone who freaks out at the idea of being wrong, gets defensive, or tries to shift the blame when things don’t go as planned, it’s a massive red flag.

Real business is about solving problems, not playing the blame game.

• They take ownership of their mistakes and work to fix them.
• They don’t point fingers or shift blame when things go wrong.
• They see accountability as a way to grow, not something to avoid.
• They’re willing to admit when they’ve dropped the ball and step up to do better.

10. They’re a Natural Problem-Solver

Speaking of problems, they’re inevitable. No matter how much you plan, something will always go wrong (thanks, Murphy’s Law). A solid business partner is someone who can think on their feet and come up with solutions. They’re not the type to throw up their hands and say, “Well, guess that’s it. We’re screwed.”

If your friend is the kind of person who thrives under pressure and enjoys figuring out how to turn a bad situation around, that’s a great sign. If they’re more the type to panic or wait for someone else to swoop in and fix everything, they might not be the best fit.

• They don’t freeze up when things go off course—they adapt.
• They’re resourceful and quick to come up with solutions.
• They approach problems calmly, with a focus on resolution, not panic.
• They thrive in challenging situations and use them to push the business forward.

11. They’re Good With Boundaries

Friendship is all fun and games, but business? Business requires boundaries. You can’t spend all day reminiscing about that wild weekend in Vegas when you’ve got a client presentation due in an hour.

Your friend needs to understand that when you’re at work, you’re partners, not buddies hanging out. They have to respect business hours, deadlines, and the fact that just because you’re friends doesn’t mean they can slack off or take advantage of the relationship.

Clear boundaries make for healthy partnerships—and also ensure you still like each other after a long day of work.

• They know when to draw the line between work and friendship.
• They respect your personal space and understand professional limits.
• They don’t blur the lines between personal favors and business responsibilities.
• They can separate business criticism from personal feelings.

12. They Understand the Sacrifice

Starting a business is a sacrifice. You’re giving up time, money, and sometimes your social life. A good business partner understands this and is ready to make the necessary sacrifices to make the business successful.

If your friend still thinks starting a business means having endless free time to do what they want or being able to take vacations whenever, they’re in for a rude awakening.

You need someone who’s all-in, not someone who’s half-committed and thinks running a business is like running a lemonade stand.

• They’re fully aware that success requires long hours and hard work.
• They’re willing to put in extra effort even when it means personal sacrifice.
• They don’t expect immediate rewards or constant praise for their hard work.
• They’re all-in for the long game, not just short-term wins.

13. They Have the Right Attitude Toward Failure

Failure is part of the game. The question is, how does your friend handle it? Do they bounce back and keep pushing, or do they get discouraged and start questioning everything? You need a partner who understands that failure isn’t fatal—it’s feedback.

If your friend is resilient and treats setbacks as learning experiences, they’re more likely to make a solid business partner. But if they crumble at the first sign of failure, they might drag you down when things get tough.

• They don’t see failure as the end but as a stepping stone to success.
• They can bounce back quickly from setbacks and keep pushing forward.
• They aren’t afraid to fail because they know it’s part of the process.
• They use failure as fuel to improve, not a reason to quit.

14. They Know How to Set and Smash Goals

Goal-setting is the foundation of any successful business. If your friend doesn’t know how to set realistic, measurable goals—or worse, they don’t follow through with the goals they do set—it’s a problem.

A good business partner not only knows how to set goals but is also motivated to hit those targets consistently.

If your friend tends to make a lot of empty promises or struggles to stay on track with their personal goals, that might be a reflection of how they’ll handle business objectives.

Look for someone who is driven and goal-oriented.

• They’re strategic in setting clear, achievable goals.
• They don’t just dream big—they have the discipline to make it happen.
• They hold themselves accountable for hitting targets.
• They understand the importance of both short-term milestones and long-term objectives.

15. They Bring Positive Energy (Most of the Time)

Notice I didn’t say all the time, because no one’s positive 24/7 (and if they are, they’re probably hiding something). But overall, a good business partner brings positive energy to the table. They’re someone who lifts you up when you’re down, helps you keep your chin up during tough times, and reminds you why you started this journey in the first place.

If your friend is constantly negative, whining and complaining about how hard everything is, or just doesn’t have the right mindset for growth, it’s going to be a drag.

You want someone who’s got an optimistic outlook (most of the time), even when things aren’t going perfectly.

• They’re the kind of person who lifts your spirits when you’re feeling down.
• They maintain a generally optimistic outlook, even when things get tough.
• They’re the type who encourages the team and brings morale up, not down.
• Their positive energy is infectious and helps create a healthy work environment.

16. They Respect Your Friendship Outside of Business

Last but certainly not least, a good business partner knows how to separate business from personal. Yes, you’re friends first, but that doesn’t mean your friendship has to suffer because of the business. In fact, it shouldn’t.

If your friend respects your friendship and makes sure to maintain that relationship, even while building a business together, you’re in good hands.

This emphasizes balance—keeping the personal stuff personal and the business stuff professional.

• They don’t let business disputes ruin your personal relationship.
• They understand the value of keeping the friendship strong alongside the business.
• They don’t blur the lines between professional disagreements and personal feelings.
• They make an effort to maintain your friendship, even outside of work hours.

Conclusion: Is Your Friend Ready to Be Your Business Partner?

At the end of the day, starting a business with your friend can either be a beautiful, collaborative journey or a recipe for disaster.

The key is knowing whether your friend has what it takes to handle the business side of things—whether they can step up when needed, bring something valuable to the table, and still be someone you want to grab a beer with at the end of a long week.

If your friend ticks most (or better yet, all) of these boxes, then congratulations—you might just have found the perfect business partner.

But if you’re feeling a little hesitant or recognize some red flags, it might be worth reconsidering before signing any contracts.

Because in reality, business is tough enough without adding a messy friendship breakup to the mix.

Looking to sharpen your skills before taking the entrepreneurial plunge?

Skillshare is an amazing platform with classes that can help you and your friend learn essential business skills—from financial planning to marketing strategies. It’s like having a mentor on demand, whenever you need it.

Start learning today, and who knows? Maybe by the time you finish your first course, you’ll be ready to conquer the business world together.

Also, don’t forget to check out our book recommendations for essential reads on entrepreneurship and partnership building!

FAQs

1. What should I consider before going into business with a friend?

Before jumping into a business partnership with your friend, consider whether they share your vision, bring complementary skills, can handle conflict professionally, and understand the sacrifices required. Evaluating their reliability and commitment is key too.

2. How can I tell if my friend and I are compatible as business partners?

Compatibility in a business partnership goes beyond friendship. Look at how well you communicate, handle disagreements, and approach decision-making. If your friend can balance honesty with respect, you’re likely on the right track.

3. What are the risks of starting a small business with a friend?

The main risk is that business pressures can strain or ruin your personal relationship. If your friend can’t handle accountability, conflict, or financial responsibility, the partnership—and friendship—could suffer.

4. How do I know if my friend is financially responsible enough for a business partnership?

Pay attention to how they manage their personal finances. Are they responsible with money, good at budgeting, and transparent about spending? If they can handle money like an adult, that’s a good sign for a successful business partnership.

5. How do we protect our friendship while running a business together?

Set clear boundaries, maintain open communication, and separate business issues from personal feelings. Respect each other’s strengths and weaknesses, and keep in mind that preserving the friendship outside of business is crucial.

6. What happens if my friend isn’t pulling their weight in our business?

You need to address the issue directly and honestly. If they’re unable to step up, it might be time to reassess the partnership. Transparency, clear expectations, and regular check-ins can help avoid this situation.

7. Can friends become business partners in a successful small business?

Absolutely. Many successful small businesses are built on friendships. The key is ensuring you both bring complementary skills, can communicate openly, and are committed equally to the success of the business.