Well, it’s a double-edged sword.
You can trust your friends. Business requires trust & comfort to work with. Remember ‘a known devil is better than an unknown angel!’ Many startups fail when cofounders fight or don’t align their thought processes. Having a friend who you already understand works well. Not to mention, it’s fun to have friends in your startup journey. If you don’t enjoy your journey, then there is no point.
There is high probability when things are not going good, few cofounders might lose focus. Or something personal comes up (e.g. wedding, MBA, health issues, etc.) Or they suddenly start taking things for granted. It then becomes really difficult to have a tough conversation & take hard decisions if it’s a friend. Plus, if they already have a significant stake, you are stuck because you never put an exit strategy in place!
So, what is the solution? Have the most uncomfortable discussions upfront. Have a clear vesting period (e.g. 25% stock vesting per year), KPIs & exit strategy. If expectations & structure are set, then it’s easy for everyone to work within that framework. A friend could be a great co-founder if you can get this done before you even start!
Watch the 6th episode of #AskVishwas Show to know the do’s and dont’s when you decide to set up a business with your friends or family.
Such a practical scenario, one that each one of us will face eventually if you ever decide to startup.
They say it is always better to keep business and friendship separate, but you don’t always need to take such extreme steps. Watch the above motivational video to know how you can build a successful company with your best friend.