I know. You are unhappy with me because I’ve been inconsistent with my letters to you. Even this one is coming on a Friday, instead of the usual Wednesday.
I am sorry. I have been overwhelmed with the planning for Caladium Lagos SME Bootcamp 6.0, and building FedaCash, the new tech platform we have built for you to enable you to trade your customer invoices for cash, join cooperatives and generate your invoices for free.
Visit www.fedacash.com now to start creating your invoices for free!
I should start this by telling you that I and my co-founder in CLSME, have been together running the Lagos SME Bootcamp, which is now the Caladium Lagos SME Bootcamp for six years.
It was and still is a beautiful journey with Oluwaseun “Slim” Durojaiye in this journey.
Now, let’s go to the deal.
I’m tired of seeing friendships burn due to business engagements because they shy away from tough conversations. I have been there too, having had a few friendships go sour due to business relationships that we fell out from.
Having started and grown businesses for over a decade, I can confidently say that not everyone that is good enough for friendship is good enough for business. In fact, not everyone who is family deserves to be business partners, much less friends.
The question then arises: Should you engage in business with your friends? My answer is not a resounding no; in fact, whenever there's a chance for collaboration, I often approach my friends first.
However, it's crucial to approach such partnerships with the correct mindset and strategies. If you are starting a business with a friend, keep your heads up and consider all I will share with you.
Set and maintain clear roles:
While adopting a collaborative approach might seem instinctive at the beginning, it is not the ideal approach. Instead, it is crucial to define roles from the outset and ensure they are maintained.
To achieve this, it is important to take the necessary steps to comprehend your strengths and weaknesses. This understanding will enable you to define everyone's responsibilities accurately.
It is essential to proactively engage in open and honest conversations about sensitive topics. Don't shy away from addressing these matters early on. In any team, there can only be one CEO, CFO, COO, Head of Product, and so on.
Similarly, discussions regarding salary, job descriptions, and equity should not be postponed. The longer you delay these conversations, the more challenging they become. It is best to address them promptly to prevent any unnecessary complications.
Trust alone is insufficient in a business relationship. To establish structure, good management practices, and relationship rules, it is crucial to have a legal contract and agreement in place. These legal measures go beyond trust and provide a solid foundation for protecting your company's interests.
Effective communication is the cornerstone of any relationship, and its significance is amplified when collaborating with friends. While it may be tempting to hold back and avoid confrontation, this approach is ultimately detrimental in the long run.
Goals Should Be Aligned
If your motivations and goals do not align, don’t work together; just continue your friendship. Even marriages struggle where goals and vision do not align.
Contrary to the widely held belief that business ruins friendships. I believe doing business with your friend can deepen the relationship if you do it correctly.
How are you doing it?
Best regards!
Ayo Bankole Akintujoye
Instagram @AyoBankolee