Entering into business partnership with your friends is a good thing, however if not well structured, it can lead to a disastrous end.
Despite the good rapport between friends in the social circles, the same may not apply to money matters.
It is therefore critical to consider some of the below issues.
-Make a clear written agreement on the running of the business as well how to share profits/ salaries to partners
-Ensure that your principles are to a great extent in tandem. For instance, does everyone in the team consider tax compliance as an integral part of running a successful business?
-Have clear and concise roles assigned to the respective partners..
-Maintain accurate books of account without fail. Every revenue and every expense must be traced, documented and recorded.
–Plan for a worst case scenario. Contemplate what would happen if you disagreed.
-Consider hiring independent professionals /experts once the business picks.
-Separate emotions from the business.
-Have a clear and elaborate plan for the business.
