For entrepreneurs, starting a new business can be intimidating because of the risk of failure.  Many decisions need to be made, but the first question is always who.  Entrepreneurs ask themselves: Am I working alone? If not, then who will I be working with?  When people are unsure, they tend to lean towards familiarity; in this case, entrepreneurs will want to work with friends. 

Starting up a business with friends has many benefits.  Working with friends sets a very comfortable working environment that everyone can feel and use as energy.   According to Fast Company, people are 12% more productive when they are in a happy environment and 10% less productive in an unhappy environment.  That’s a 22% difference in productivity!  Also, when working with friends, it’s smoother in the beginning since strength and weaknesses are already known.  This means that everyone will be working up to their full potential straight from the beginning, doing what they do best.  Personally, I find this problem particularly challenging in group projects. The lack of knowledge results in everyone having to do a little bit of everything as opposed to everyone just playing to their strengths and producing the best quality work possible.

Whilst there are many benefits, there are also some downsides when working with friends.  In business, often it’s about who you know and not what you know.  Working with friends generally mean that your network is smaller because you know the same people.  This translates to less connections being made and the business taking longer to bloom.  Another huge downside stems from the friendship itself.  It’s difficult to separate professional work from personal work; when working with friends, professional work is intertwined with personal.  Sub-optimal business decisions might me made to save a friendship, and that’s not necessarily what’s best for business.

When it comes to working with friends, Business News Daily suggests establishing roles and mapping everything out on paper to ensure a strong backbone for the business.  Furthermore, a post on The Blog Market talks about the need for communication, goals, and willingness for all business members to put in an equal effort. They claim that these are the core components of a stable business.  These two sources provide valuable tips for anybody looking to start their own business.

Personally, I prefer working with friends than working alone or with strangers.  Despite the downsides of a small network and friendship possibly leading to unfavourable business decisions, I firmly believe that the benefits outweigh the negatives.  The benefit of a happy work environment alone leads to increased productivity which is vital when it comes to running a successful business.

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Reference List:

http://www.businessnewsdaily.com/10218-start-business-with-friend.html

6 Things to Consider Before Starting a Blog or Small Business With a Friend

https://www.theglobeandmail.com/report-on-business/small-business/startups/the-pros-and-cons-of-going-into-business-with-a-friend/article14086769/?arc404=true

https://www.fastcompany.com/3048751/happy-employees-are-12-more-productive-at-work

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