Should You Go Into Business With Friends or Family? What to Know Before You Start
You and someone close to you—a spouse, sibling, parent, or lifelong friend—are exploring a business partnership. Two Black women entrepreneurs on a mission, ready to build something amazing together! You’re excited, you love and trust each other, and you’re dreaming of an empire that leaves a legacy and brings joy-filled workdays.
But sis, it’s all fun and games until the day-to-day grind gets real and feelings get hurt. Before you jump heart-first into this venture, take a pause. Building a business with someone you love has big rewards, but it also comes with challenges that can shake your relationship and impact your business’s success.
Relationship Time
How will working together every day impact your existing bond? If your business partner is your spouse, sibling, or best friend, it’s critical to set boundaries between work time and personal time. You don’t want work-related stress to bleed into family dinners, date nights, or brunches.
Be intentional about protecting your relationship outside of the business. Plan time to connect on a personal level—free from spreadsheets, sales reports, or marketing plans. Success is sweet, but not at the expense of a broken friendship or family dynamic.
Relationship Health
Take a hard look at the current state of your relationship. Is it strong enough to withstand the added complexities of running a business together? If there are unresolved issues, tension, or even unhealthy competitiveness, those problems won’t magically disappear once you sign a partnership agreement—they’ll magnify.
And let’s talk values. While you might share the same family traditions or friendship history, do you share the same work ethic and business values? Misaligned priorities or approaches to work can quickly become a source of friction. For example, if you’re all about discipline and deadlines but your partner thrives on flexibility and spontaneity, you may find yourselves at odds. Alignment on how you define success and approach challenges is key.
Effective communication is non-negotiable. If you already struggle to talk through conflicts or problem-solve together, it’s time to address that before you jump into business. A partnership is a lot like a marriage—it requires trust, transparency, and the ability to tackle hard conversations with grace.
Emotional Connections Can Cloud Judgment
When your partner is someone you deeply care about, it’s easy to let emotions take the lead in decision-making. This can blur your ability to make objective business choices. You might find yourself saying yes to a bad idea just to avoid conflict or sparing accountability to protect someone’s feelings.
Ask yourself: Can you separate personal feelings from business decisions? For instance, would you hesitate to call out your sister or bestie if she consistently missed deadlines or fell short on deliverables? Will you be able to have those tough conversations without resentment building in the background?
Accountability is Critical
Holding each other accountable is the backbone of any successful business. Can you push your partner to meet performance commitments without damaging your personal relationship?
This dynamic becomes even trickier in relationships with inherent power imbalances. For example, a daughter working with her father may feel uncomfortable challenging his financial decisions because he’s been the family’s provider her whole life. Similarly, a younger sibling might struggle to give constructive feedback to an older brother or sister who has always taken on the role of protector.
Accountability means being able to separate personal roles from professional ones—and that takes clear boundaries, solid agreements, and a mutual understanding of what’s best for the business.
A Few Final Warnings
Before diving in, keep these considerations top of mind:
- Be ready for role clarity. Define who does what upfront to avoid overlap or confusion.
- Create formal agreements. Even with family or friends, get your expectations, responsibilities, and exit strategies in writing.
- Prepare for the unexpected. Life happens—whether it’s financial hardship, illness, or personal conflict. Can your partnership weather those storms?
If you’re ready to take the leap, don’t skip the prep work. Check out 6 Questions to Screen Your Potential Business Partnership for practical tips on assessing compatibility before you take the leap.
Sistahbiz Global Network is the premier network for Black women entrepreneurs. Learn more about membership benefits here.