The Dos and Don’ts of Working with Friends in Business

Working with friends in business can be a rewarding experience, but it also comes with unique challenges. Mixing personal and professional relationships can blur boundaries, leading to tension if not handled properly. Here’s a straightforward guide on the dos and don’ts of collaborating with friends in a business setting.

The Dos

Set Clear Boundaries - Establish clear boundaries between your personal and professional lives. Be upfront about expectations, communication methods, and work hours. This helps prevent personal issues from affecting business decisions and vice versa.

Have Open, Honest Communication - Transparency is key. Address concerns directly and respectfully, even if the conversation is uncomfortable. Open communication will help avoid misunderstandings and ensure both parties are on the same page.

Define Roles and Responsibilities - Clearly define each person’s role in the business. This will help you avoid overlap and confusion. Knowing who is responsible for what ensures tasks are completed efficiently and no one feels overburdened or neglected.

Create a Formal Agreement Even if you’re friends, it’s essential to have a formal agreement in place. A written contract outlining business responsibilities, revenue sharing, and conflict resolution procedures can help avoid future disagreements and keep things professional.

Respect Each Other’s Time - Treat your business relationship with the same professionalism as you would with any other colleague. Avoid using personal relationships to take shortcuts, like expecting favors or prioritizing personal time over business commitments.

Respect Each Other - Respect in any working relationship is key. Make space for each other’s feelings, communicate clearly, and listen actively—but also make sure that respect goes both ways.

A healthy dynamic means honoring each other’s roles and efforts. Mutual respect sets the foundation for trust, productivity, and long-term success.

Celebrate Wins Together - While the work environment may be professional, take time to celebrate achievements and milestones together. Recognizing successes strengthens the business and your friendship, making it more enjoyable and less transactional.

The Don’ts

Don’t Assume Personal Connections Override Professionalism - Just because you’re friends doesn’t mean you should treat business lightly. Don’t assume that your friendship gives you the right to skip formalities, ignore deadlines, or avoid tough conversations. Always maintain professionalism.

Don’t Ignore Conflict - Conflict will arise. Don’t avoid it or let it fester. Address issues head-on with respect and a solution-oriented approach. Avoiding tough conversations can cause resentment, which damages both the business and your friendship.

Don’t Mix Finances and Friendship - Money can be a major source of tension. Avoid making informal deals or side agreements that could harm your friendship. Keep financial discussions professional, clear, and written down. Be upfront about compensation, profits, and expectations from the start.

Don’t Be Afraid to Hire Outside Help - Just because you're working with friends doesn’t mean you have to do everything together. If there’s a skill or expertise you both lack, don’t hesitate to bring in an outside professional. Don’t let your friendship prevent the business from evolving and improving.

Don’t Let Friendship Get in the Way of Growth - Sometimes, business decisions can create tension within a friendship—but growth often requires difficult conversations. Don’t rush. Take space if needed, and approach decisions from a clear, non-emotional mindset.

If the business needs to pivot, make cuts, or shift direction, focus on open and honest communication. Do what’s best for both the relationship and the business.

If both people are committed to the success of the business, you’ll find a way to come together and make the tough calls. Going into business or collaborating with friends means you have to be willing to make hard, honest decisions for the greater good.

Don’t Expect Unspoken Understanding - Don’t assume that your friend automatically knows what you need or expect. Always communicate expectations clearly, whether it’s regarding work hours, deliverables, or long-term goals. What works for your friendship may not work in a professional context.

Working with friends in business can be a great way to combine strengths, but it requires setting clear boundaries, maintaining open communication, and prioritizing professionalism. By defining roles, addressing issues head-on, and respecting each other’s time, you can avoid the pitfalls that often come with mixing friendship and business. Stay focused on the business goals, and your friendship can thrive alongside it.