In business – Balancing business and friendship

Engaging in business with friends can seem to be the perfect mash-up of professional collaboration and personal camaraderie. After all, who better to trust and rely on than those with whom we share deep bonds of friendship? 

However, the reality can be far more complex, as the dynamics of friendship intersect with responsibilities and expectations. I have found that doing business with old friends can be complicated, while forming new friendships through business is relatively straightforward.

One of the primary challenges I’ve encountered in doing business with friends lies in the blurred boundaries between personal and professional spheres. Friendships are often characterised by familiarity, informality, and ego, which can complicate matters when it comes to making tough business decisions. Striking a balance between nurturing the friendship and addressing the demands of the business can be a delicate and challenging task, and many of us have experienced instances where this balance has faltered.

Furthermore, the shared history and emotional baggage that accompanies friendships can further complicate business dealings. Past grievances, unresolved conflicts, or differing values and priorities may resurface in the context of business decisions, leading to resentment, misunderstanding, or even the dissolution of the friendship. 

The path of least resistance often involves avoiding conflict or confrontation to preserve the friendship. However, this approach can hinder effective business communication and decision-making. Difficult conversations, such as addressing performance issues or negotiating terms, are often sidestepped in an effort to maintain peace. Unfortunately, this can ultimately undermine the success of both the business and the friendship.

Despite these challenges, there are positive aspects to consider. Forming business relationships with individuals discovered through networks or connections offers distinct advantages. These relationships are often built on shared goals, mutual respect, and a clear understanding of each party’s roles and responsibilities in a business context. There is typically less emotional baggage and personal history to contend with, allowing for more objective decision-making and conflict resolution. Assessing the value each party brings to the table can be done objectively, and different strengths leveraged for mutual benefit.

Professional relationships tend to be governed by clear boundaries and expectations, reducing the likelihood of misunderstandings or crossed wires. Regardless of the relationship dynamics, keeping collaboration simple, minimising room for misinterpretation, and conducting tough conversations with respect, are essential in business. While the adage “don’t do business with friends and family” holds merit, there can also be magic in such collaborations, provided that boundaries are clear and honest.