{"id":14237,"date":"2026-08-06T16:55:00","date_gmt":"2026-08-06T22:55:00","guid":{"rendered":"https:\/\/damiensoitout.com\/doing-business-with-family-and-friends\/"},"modified":"2026-08-13T08:02:59","modified_gmt":"2026-08-13T14:02:59","slug":"doing-business-with-family-and-friends","status":"publish","type":"post","link":"https:\/\/damiensoitout.com\/en\/doing-business-with-family-and-friends\/","title":{"rendered":"Doing Business with Family and Friends"},"content":{"rendered":"

Doing business with family and\/or friends<\/h2>\n

Everyone talks about the reasons why doing business with family and friends is dangerous. It is very common to hear that you should not do it. Where does that fear come from? After all, partnering with someone you trust deeply should feel like the logical next step, right?<\/p>\n

As with everything in life, there are pros and cons. Popular opinion is not always right, but it is not always wrong either.<\/p>\n

Sponsored*<\/em><\/p>\n

The pros<\/h2>\n

1- You know each other well:<\/strong> If you decide to do business with a relative or a friend, it is because there is trust and real affection. That makes it easier for each person to have a clear role, to speak up, and to keep the business moving when you disagree.<\/p>\n

2- Client trust:<\/strong> Clients are not always eager to work with young companies, and for good reason. A family-business status often reassures them that every partner is fully committed to making it work. In general, that means you will push harder than other providers to deliver the level of service you promise.<\/p>\n

3- Lower risk of theft or bad faith:<\/strong> Finding someone you can truly trust is hard. Many failure stories start when a partner stops being transparent or puts personal interests ahead of the company. Launching a project with someone you have known for years helps reduce that risk.<\/p>\n

The cons<\/h2>\n

1- Losing their money:<\/strong> If a friend or relative invests in your project, you are putting their capital at risk. That is not only a problem for the partnership. It can also destroy your personal relationship with that person.<\/p>\n

2- Mixing family and business:<\/strong> You are at Christmas with the family, and the cousin who started the business with you is at the table. The problem is that they may not know how to separate personal life from work. Like most entrepreneurs, the conversation quickly turns to the business and you cannot enjoy your free time.<\/p>\n

3- Emotions get in the way:<\/strong> When you do business with family, staying objective is not always easy. Personal feelings mix with the logic you need for decisions. When you think with your heart instead of your head, bad decisions follow.<\/p>\n

How do I prepare to launch a business with a friend or relative?<\/h2>\n

1- Talk it through with the person:<\/strong> You need to define the framework in which you will run the project. If you cannot agree on this first step about who does what, it is better not to start.<\/p>\n

Also read: From work friends to being the boss<\/a><\/em><\/p>\n

2- Investments:<\/strong> Define in advance how much each person will invest and what ownership percentage each one holds. Once you agree on this, you can form the company and sign the legal documents with far less stress.<\/p>\n

3- Sign the agreement:<\/strong> A verbal promise is only air. Whether it comes from a stranger, a friend, or a family member, when money is involved people change and go into defensive mode. Sign every agreement before a notary so you avoid long-term problems.<\/p>\n

4- Bring in outside help:<\/strong> Having people in the business who are not family or friends helps ease tension and awkward dynamics. Find a coach<\/a>, financial advisor, lawyer, or other expert to join meetings or sit on your advisory team. They help you solve problems without turning every issue into a relationship conflict.<\/p>\n

 <\/p>\n

Personally I do not recommend doing business with friends and family, but it is not impossible. The real issue is the risk involved, your maturity in managing emotions, and your level of professionalism. If that person is not at least at your level, you can create irreversible damage. If you really need a partner<\/a>, I recommend looking for a third party who complements your talents and skills, and letting the friendship grow through the project.<\/p>\n","protected":false},"excerpt":{"rendered":"excerpt","protected":false},"author":1,"featured_media":2741,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"categories":[3969],"tags":[],"class_list":["post-14237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nDoing Business with Family and Friends: Pros, Cons & How to Prepare<\/title>\n<meta name=\"description\" content=\"Everyone says doing business with family and friends is dangerous. 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