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You and your friend are sitting at a café, drinking overpriced coffee, tossing around the idea of starting a business together. I mean, it sounds like a dream come true for many, right? Combine forces, make money, and laugh all the way to the bank.
But let’s slow down for a second before we order that matching set of monogrammed briefcases. While starting a business with your friend could feel like a match made in heaven, it could also end in a fiery explosion that leaves your friendship in ruins—and no one wants that awkward conversation.
Before you take the plunge, it’s worth digging into the pros and cons. Because let’s face it, just because you both have a shared love for midnight Taco Bell runs doesn’t mean you’re perfectly aligned when it comes to running a business.
Now, go grab another overpriced coffee and settle in. We’re about to get deep into what it really means to start a business with a friend.
Contents
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The First Question You Should Ask Yourself: “Why Are We Doing This?”
Before you start drawing up the business plan, ask yourself the hard question: Why are we really doing this?
Are you genuinely passionate about the business idea, or is this just a fun side project that you’re hoping magically becomes profitable? Running a business is rarely just fun, and it doesn’t “magically” make you money. You need to be sure you both want the same thing. Because when things get tough—and I promise they will—you don’t want one person realizing they were never fully invested in the first place.
Now, if your reasons for starting a business together are solid, let’s get into the good stuff—the reasons why partnering up with your friend could be one of the best decisions you’ll ever make.
13 Pros of Starting a Business with Your Friend
Let’s kick things off with the good stuff. Who wouldn’t want to make money while hanging out with someone who knows you better than anyone? But like with anything, it’s not all sunshine and rainbows. There are some undeniable pros to this setup, and we’re about to go into why it can work out pretty well—if you’re prepared and lucky.
You Already Know Each Other’s Strengths (and Weaknesses)
Starting a business with a stranger means spending months, maybe even years, figuring out what they’re good at—and more importantly, what they suck at. With your friend, you already know their strengths, their blind spots, and how they handle pressure. Maybe they’re the creative visionary, and you’re the logistical mastermind, or vice versa. Either way, there’s less guesswork, and you can get down to business faster.
But let’s be honest, you also know their weaknesses. Maybe they’re chronically late, or they procrastinate like it’s a sport. The key here is to be real about it from the get-go. Don’t pretend their bad habits will magically disappear just because you’re starting a business together.
Communication Comes Naturally (Mostly)
One of the biggest hurdles in any business partnership is communication—or lack thereof. But if you’ve been friends for years, you’ve likely mastered the art of talking things out. You don’t have to deal with the awkward small talk, and you can cut straight to the point. Plus, you can probably tell when something’s off without them even saying a word.
But don’t get cocky. Just because you know how to communicate doesn’t mean things will always be smooth. Business discussions can get tense, and you might see a side of your friend you’ve never seen before. Be prepared for some tough conversations, and remember: talking about business is very different from talking about the latest Netflix show.
Trust is Already Established
Trust is everything in a business partnership. You need to know the other person has your back, especially when money is involved. With a friend, you’ve already built that trust. You know they’re not going to run off with the company credit card and disappear to some island in the Caribbean. (Unless, of course, you’re that kind of friend duo, but that’s a whole different issue.)
Having that foundation of trust can give you peace of mind and allow you to focus on building the business, rather than constantly questioning their motives.
You and your friend probably have a similar outlook on life, or at least enough shared values that you won’t be at each other’s throats over every decision. Whether it’s your approach to work-life balance, ethics in business, or how you treat customers, starting with a similar mindset can make things a lot easier.
However, it’s worth having a serious conversation about your goals and values before you jump into the business. Just because you both love the idea of “being your own boss” doesn’t mean you’re on the same page about what that looks like day-to-day.
You Can Motivate Each Other Through Tough Times
Starting a business isn’t all sunshine and profits. There will be days when everything feels like it’s falling apart. The beauty of having your friend as a business partner is that they’ll be there to remind you why you started in the first place. They know how to push your buttons (in a good way) and can help you stay motivated when you feel like throwing in the towel.
Just make sure that motivation doesn’t turn into enabling. There’s a fine line between being supportive and letting your friend get away with bad business decisions because you don’t want to hurt their feelings.
You’ll Have Fun
Starting a business with your best friend can be a lot of fun. You’re building something from the ground up together, and there’s something incredibly rewarding about that. The inside jokes, the late-night brainstorming sessions, the sense of shared achievement—it’s all part of the journey.
If you’re going to be stressed out about launching a business, you might as well have someone by your side who knows how to make you laugh.
You’re Already Comfortable Calling Them Out
One of the best things about starting a business with a friend is that you’re not going to tiptoe around them like you would with a stranger or a colleague. If they screw up, you can be direct about it without that corporate awkwardness that comes with formal partnerships. You’ve already fought over who pays for pizza, who picked the worst movie on Netflix, or who forgot to text back—it’s not your first rodeo when it comes to accountability.
You’re both comfortable telling each other the truth. When things go sideways (and they will), you’re less likely to sugarcoat feedback. And that’s a blessing. Instead of dancing around the issue, you can say, “Dude, this idea sucks,” and move on. Brutal honesty might hurt, but it’s better than watching your business tank because no one had the guts to speak up.
Less Red Tape, More Action
Starting a business with a friend usually means skipping a lot of the formalities and nonsense. You don’t need a dozen meetings to “discuss” whether you’re both serious about this venture. Chances are, you’ve already hashed out the basics during your regular catch-ups, probably over drinks or while waiting for your food to arrive. So instead of spending six months in “vision board” mode, you can actually start getting things done.
No stuffy boardroom sessions. No months of back-and-forth emails trying to set up a time to “meet and brainstorm.” With your friend, it’s more like, “Let’s do this,” and you’re off to the races.
No Filter Needed
With a stranger or a business acquaintance, you might feel the need to put on a professional front, censoring your thoughts to avoid stepping on toes. With a friend? Nah. You’ll have no issue being 100% yourself, dropping all the corporate jargon, and being real about your business vision. This unfiltered communication means fewer misunderstandings, quicker decisions, and the freedom to get creative without worrying about how you “should” say things.
Plus, being real means you’re more likely to share wild, out-of-the-box ideas that just might work, without worrying about looking like an idiot. With friends, there’s no need to worry about being “judged.”
You Can Handle the Weird, Unscripted Moments
Business partnerships can get weird—like, really weird. There will be moments that test your patience, sanity, and ability to handle stressful, unpredictable situations. But if you’ve known your friend for years, you’ve probably already seen them at their weirdest. You’ve been through awkward hangouts, cringe-worthy decisions, and shared way too many personal stories. Basically, you’re prepped for the unscripted moments that will inevitably come with running a business.
This kind of familiarity makes you more adaptable as partners. You know how they react when they’re stressed, what they need when they’re frustrated, and how to keep things light when tensions are high.
Double the Network
Two heads are better than one, and two networks are way better than flying solo. When you start a business with your friend, you get instant access to their network—and vice versa. You both know different people with different skills, resources, and connections that can help your business grow faster than if you were doing it alone.
While one of you might know a graphic designer, the other might have a killer accountant in their circle. Together, you expand your pool of resources, making it easier to find the right people to help your business succeed.
Let’s not beat around the bush—starting a business costs money. And one of the biggest perks of having a friend as your business partner is that you’re not alone when it comes to the financial burden. Instead of draining your personal savings or maxing out your credit cards, you can split the cost.
This doesn’t just apply to startup costs either. As the business grows, having a partner means you can divide expenses, investment risks, and even your inevitable first round of legal fees (because let’s be honest, you’ll probably need a lawyer at some point).
Celebrating Wins Together Feels Even Better
Sure, you could pop champagne alone after landing your first big client or hitting your revenue target, but where’s the fun in that? When you start a business with your friend, every win feels sweeter because you get to share it with someone who’s been there from the start.
You can celebrate together, knowing exactly how much blood, sweat, and probably some tears went into getting there. The highs feel higher, and the victories taste even better when you have someone by your side who’s been through the grind with you.
8 Cons of Starting a Business with a Friend
But hey, before you get too comfortable dreaming about co-working lunches with your bestie, let’s pump the brakes for a second. Starting a business with a friend is no small feat, and there are some serious potential landmines that can blow up the whole operation (and your friendship).
Let’s discuss the cons and why this dream scenario might quickly turn into a nightmare if you’re not careful.
The Friendship/Business Line Gets Blurry (Fast)
Let’s get one thing straight: your friendship will never be the same once you throw business into the mix. If you’re the type who loves your friend for their carefree attitude, constant last-minute plans, or their ability to ghost you for a week and reappear like nothing happened, brace yourself. In business, those quirks will drive you insane.
That line between “friendship” and “business partner” blurs fast when there’s money, deadlines, and clients involved. Suddenly, you’ll be tempted to text them at midnight, not to laugh about an inside joke, but to ask why they didn’t finish the client pitch on time.
You need to be prepared to shift into “business mode” when it’s necessary, which is most of the time.
Conflict Resolution Can Get Personal—Fast
In business, disagreements are normal. But when you’re friends, things can escalate quickly. Suddenly, you’re not just arguing about strategy; you’re bringing up that time in 2018 when they flaked on your birthday. And it’s not pretty.
Business conflicts can start over something as simple as pricing strategy, but before you know it, you’re spiraling into personal grievances. You’re emotionally invested in this person, and that makes it hard to separate the business problem from the personal stuff. Sometimes, you’ll avoid tough conversations because you’re afraid it’ll damage the friendship—and that’s dangerous.
It’s somewhat similar to arguing with a sibling about cleaning their side of the room, but instead of socks on the floor, it’s thousands of dollars at stake. Good luck with that.
You Might Be Unevenly Invested in the Business
Here’s a big one: not everyone’s going to be equally committed. What happens if you’re pouring your heart and soul into this venture, and your friend is treating it like a “side hustle” while still working their 9-to-5? The imbalance in energy, time, and passion can breed resentment faster than you can say “I quit.”
You might start to feel like you’re the only one pulling your weight, while they’re off doing the bare minimum, still thinking it’s a fun little project.
Friend or not, nothing stings more than feeling like you’re dragging dead weight across the finish line.
Money Can (and Will) Get Awkward
Money complicates everything. Once it’s involved, things change. Suddenly, the two of you aren’t simply friends anymore—you’re business partners with financial stakes. Who pays for what? How do you split the profits? What happens if one of you wants to reinvest in the company and the other wants to cash out?
Things that used to be lighthearted, like splitting a dinner bill, turn into serious conversations about dividends, salaries, and revenue share. Oh, and don’t forget taxes—because Uncle Sam’s going to want a slice of your pie, and you’d better agree on how to handle that.
Remember when the worst money issue between you two was who forgot to Venmo for brunch? Yeah, those were the good old days.
Work-Life Balance? Say Goodbye to That.
You know how, before, when work sucked, you’d call up your friend to vent and hang out? Well, guess what—you can’t escape them anymore because they are your work. Your friend is now your business partner, and suddenly your hangouts turn into mini board meetings.
Every social interaction becomes intertwined with business. Catching up over coffee? Guess what—it turns into an impromptu “business strategy session.” Nights out become talks about the budget. And weekends? Forget about it. You’ll be glued to your Slack messages and responding to emails from the same person you used to hit the bar with.
The line between “friendship” and “business” disintegrates. You have to be willing to sacrifice some of the carefree fun for constant collaboration.
The Risk of Losing Both the Business and the Friendship
This is the big one—what if the business fails? Not only do you have to deal with the fallout of a failed venture, but you also risk losing a valuable friendship in the process. Starting a business is stressful, and if it doesn’t work out, there’s a very real chance that resentment will seep into your friendship, making it impossible to go back to how things were before.
Failure is tough. Losing both a business and a best friend in one fell swoop? That’s a next-level kind of pain.
It’s one thing to have a business go under, but if you lose a close friend because of it, the impact hits much harder. The stakes are higher when there’s an emotional connection involved.
Your Friend May Not Have the Right Skills
Okay, this one’s uncomfortable to admit, but sometimes your friend isn’t cut out for the business world. Sure, you get along great, but are they the right person to help you build a company? Maybe they’re a creative genius, but terrible with numbers. Or they’re a people person, but can’t manage a project to save their life.
Friendship doesn’t automatically translate to business compatibility. And while it’s tempting to say, “We’ll figure it out as we go,” that mindset can get you in trouble fast.
You wouldn’t hire a stranger who lacks the necessary skills just because they’re fun to be around—so don’t make that mistake with your friend.
Different Visions for the Future
It’s all fun and games until you realize you both have wildly different ideas about where this business should go. Maybe you want to build an empire, and your friend is just looking for a way to escape their 9-to-5. When you realize you’re not on the same page about the business’s goals, things can go sideways quickly.
It’s like planning a road trip with your best friend, only to realize halfway there that you’re heading in opposite directions. One of you wants to take the scenic route, while the other is gunning for a quick arrival.
If you don’t figure this out early on, your business is going to feel like a tug-of-war, and your friendship will suffer for it.
Conclusion
Starting a business with a friend can be compared to riding a rollercoaster—there’s excitement, thrill, and anticipation, but there’s also a pretty good chance you’ll scream your lungs out and feel like puking halfway through.
The truth is, while working with someone you trust can be a huge advantage, it also comes with a unique set of challenges. Balancing friendship with the harsh realities of business requires emotional intelligence, patience, and a whole lot of open communication. If you can handle the blurred lines, late-night debates, and financial awkwardness, you might just pull it off.
Ready to take action?
But here’s the deal: You don’t have to go in blind. If you’re serious about this path, arm yourself with the right tools and knowledge. Platforms like Skillshare offer courses on entrepreneurship, conflict management, and communication—all things that are absolutely vital when working with a friend.
We also recommend checking out our book list for entrepreneurs, filled with gems that can help you traverse the tricky waters of business partnerships.
At the end of the day, this should not mean avoiding the risks; it’s adequately preparing for them.
Take a course, read up, and go in with your eyes wide open. Because the best kind of business is the one that thrives without sacrificing the friendship that started it all.
FAQs
1. What are the main pros and cons of starting a business with a friend?
Starting a business with a friend can offer great advantages like mutual trust and strong communication, but it also comes with risks. The main pros include shared vision, fun collaboration, and deep trust. The cons, however, can include blurred boundaries, personal conflict, and the risk of losing both the business and the friendship.
2. What should you consider before going into business with a friend?
Before going into business with a friend, consider your compatibility in a professional setting. Do you share similar work ethics, goals, and problem-solving approaches? Establish clear boundaries, and ensure you’re prepared to handle both success and failure together.
3. Is it common to start a business with friends?
Yes, it’s common to start a business with friends, especially in small business ventures. Many successful companies have been founded by friends, but it’s important to understand the unique challenges that come with mixing friendship and business.
4. What’s the biggest disadvantage of starting a business with a friend?
The biggest disadvantage of starting a business with a friend is the potential for personal conflicts to interfere with business decisions. If not handled well, these issues can jeopardize both the success of your new business and the friendship itself.
5. Can starting a business with a friend affect your personal relationship?
Absolutely. Starting a business with a friend can blur the lines between your personal and professional lives. If disagreements arise in the business, it can lead to strained personal relationships if not addressed properly.
6. How can you maintain balance when you co-found a business with a friend?
To maintain balance, set clear boundaries from the start. Establish roles, responsibilities, and communication rules. Regularly check in with each other both as business partners and as friends to ensure the relationship remains healthy.
7. What should you do if you and your friend have different visions for the business?
If you and your friend have different visions for the business, have an open and honest discussion about your goals. You may need to compromise or even bring in a third party to mediate and find a solution that works for both of you.
8. How do you deal with conflict when you start a business with friends?
Conflict is inevitable, but it’s crucial to handle it with open communication. Keep personal issues out of business discussions, focus on finding solutions, and always respect each other’s perspectives to maintain professionalism.
9. What are some potential benefits of starting a small business with a friend?
Some benefits of starting a small business with a friend include a high level of trust, shared responsibilities, and complementary skill sets. You can also lean on each other emotionally through the highs and lows of entrepreneurship.
10. Can you be successful in business with a friend?
Yes, many people have found success in business with friends, especially when they align their work habits, maintain clear boundaries, and communicate openly. It all depends on your ability to separate business decisions from personal feelings.
11. How should roles be divided between co-founders who are friends?
Roles between co-founders who are friends should be divided based on strengths and expertise. Each person should have clearly defined responsibilities that align with their skills to avoid confusion and conflict.
12. What are some strategies to prevent losing the friendship while building a business?
To avoid losing the friendship, set boundaries early, maintain regular non-business catch-ups, and keep open communication flowing. Always respect your friend’s opinions, even when you disagree on business matters.
13. What’s the best way to resolve a major disagreement in a business with friends?
To resolve a major disagreement in a business with friends, it’s best to approach the issue calmly, focus on the facts, and avoid making it personal. Consider bringing in a neutral third party or mentor if necessary.
14. Is it easier to start a new business with a friend compared to a stranger?
Starting a new business with a friend can feel easier due to the existing trust and familiarity, but it also comes with its own set of challenges. With a stranger, there’s a cleaner slate, but with a friend, there’s emotional baggage that can impact decisions.
15. What’s the most important thing to remember when you start a business with a friend?
The most important thing to remember when you start a business with a friend is to separate business from personal. Keep clear boundaries, communicate openly, and always prioritize the health of both the business and the friendship.
