STARTING A COMPANY WITH FRIENDS: A FALSE GOOD IDEA?

Starting a company with your friends or one of your friends is a motivating project, but it would be necessary to think twice about whether or not the project itself will be successful. What are the advantages of a company with friends?

THE ADVANTAGES OF CREATING A COMPANY WITH YOUR FRIENDS

A friendly relationship, whether it is established in a professional context or elsewhere, can lead to the creation of a company. Such an association must be based on a relationship of trust. A good knowledge of the other is always beneficial if both partners know how to organize themselves well. What are the other advantages for a company between friends? You know your friend’s strengths and weaknesses. You will know from the beginning if your friend will be able to honour your collaboration or not. A successful partnership is based on 3 things: respect, trust and complicity. You can always count on your friend’s support throughout the adventure. Such an association can be a bad idea in some cases.

THE RISKS OF SETTING UP A COMPANY BETWEEN FRIENDS

Apart from the advantages of a company with friends, what risks can you expect? Partnering for the sole purpose of making money can be a bad idea. Should the company run into difficulties (an inevitable situation for new companies), your friend will be able to give up and look for money elsewhere. Associating out of weakness is also not recommended. You may have better ideas to propose, but you may not dare to take the step for fear of making a mistake. Partnering with your friend to please him or her is also an idea that should be discarded. Among other things, teaming up with your friend in a rush can lead directly to failure. The creation of a company is a project that deserves careful consideration. It requires a lot of patience and thorough market research.

OPT FOR A SERIOUS AND LASTING ASSOCIATION

Securing an association between friends is the only way to achieve a successful company creation project. Writing a partnership agreement or a shareholders’ agreement is essential. It anticipates situations of disagreement and separations. The said contract defines the terms of settlement as partners. A partners’ agreement is a legal document. It does not require publication or registration. The majority of the clauses that make it up concern cases of transfer of shares. The contract may also contain the division of responsibilities. Once you are sure that you can rely on such an association, you can set up your friendly company.

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