Starting a new business with a good friend can be very exciting, and carry many benefits. However, such a venture can also have challenges. How well-suited a business venture undertaken by friends is for meeting such challenges can in part depend on what is done as the business is being set up.
Many entrepreneurs want to jump in to the figurative pool without even considering the potential risks of operating a business, or even planning how their business should function. Picking the proper business structure is just one step of many that need to be taken in order to bolster your chances of operating a thriving and successful company. A business plan is a critical part of organizing yourself and your company so that you can have the best possible chance of achieving your goals.
In a post earlier this week, our blog discussed some of the common causes of disagreements in family-run businesses and some relatively simple steps that can be taken to help avoid these often costly quarrels. In particular, we discussed how both business decisions -- particularly how they relate to growth -- and succession often emerge as major points of contention.
To the uninitiated, all businesses may seem "the same" on an organizational level. You have your owners, managers and workers, and the company sells a product or service to customers in exchange for money. But this is an extremely shallow view of business, and one that entrepreneurs know isn't true. Running a company is incredibly complex, and it behooves entrepreneurs to know that there are a number of business structures they must choose from before they get their company off the ground.