How to start Business with Family/Friend.

Going for Business with Family / Friends?

Here some points to be consider:-

Going into business with friends has potential pitfalls but it can still work very well and starting a business is generally easier if you have someone else in the business with you. Having three of you in the business would be good due to the fact that three is an odd number and you will be able to get a majority on any decision made, by putting it to a vote.

If you do decide to go into business together I would say that it is very important that you all agree to and sign a partnership agreement that includes the following:

1.Ownership of the business - percentage shares etc

2. Decision making - how are decisions made in the business, e.g. by majority vote or other method

3. Duties & responsibilities - who is responsible for what

4. Working hours

5. Job titles

6. Profit - how are any profits to be distributed

7. Losses - how will you deal with losses, should there be any

8. Calculation of profit and losses - clarification as to how profits and losses are measured

9. Departure - how to handle a situation where one partner wants to leave the business

10. Salaries and pay, if applicable

11. Other benefits such as expenses and holidays.

Hope it will help you to initiate your business and take it for long Term.