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Starting a business with friends: 3 tips to remember

Everyone who enters into the business world has the potential to do so with friends, family or strangers. Maybe you've found that you and your friends get along so well that you can't imagine opening a business without them. Stop and think before you do; sometimes, mixing business and friendship isn't a good idea.

There are things you can do to make it safer to open a business with friends, though, if you're set on the idea. Here are a few things to remember.

You have to set your roles and stick to them

If you and your friends have different areas of expertise, it's time to define those roles and stick to them. For example, if you're an accountant and your friend is a marketer, it's time to perform duties in your area and not focus on trying to take over duties from the other person. A well-rounded team gets more done than one or two people who have no defined roles.

You may need newer perspectives

If you and your friends have similar backgrounds, you may need to consider bringing another person into the fold. Having multiple perspectives on business is crucial, so you can get as many ideas with fresh outlooks as possible.

Define the boss

Finally, you should know that there has to be at least one person who calls the shots and makes final decisions. There isn't time to run every decision by every person. Find out who you want to have as the boss, chief executive officer (CEO) and head honcho, so you know where to turn when you need a quick decision.

These three tips can help your friendship-based business shine. Define your roles early and be prepared to work together to make your business thrive.

Source: Entrepreneur, "5 Things to Know Before Starting a Business With Friends," William Litvack, accessed May 11, 2018

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