Business witn friends

[ohcmon]

Hi, sisses and bros!

I just need your inputs about putting up a business with friends. Okay ba itong ganitong set-up? Hindi kaya kami magkaroon ng conflict in the long run? I hope some of our sisses who have done this share their inputs.

A little backstory: I'm a professional in my early 20s, earning relatively enough. My office friends whom I'm super close with and I think of putting up a small business. Bale milk tea/coffee shop siya inside a big university in the city where we all live (not in the metro). Kami pa lang ang unang cafe dun sa loob if ever (it's a big campus, UP-like), but there are already two cafes in the establishment center outside the university, as in just across. 'Yung isa, milk tea pero sobrang liit ng space, as in 2 tables lang kasya inside, then the other one, medyo high-end kaya hindi pang-presyong estudyante. We plan to go somewhere between the two, tutal advantage na namin 'yung kami lang ang nasa loob ng university.

Ngayon, ang dilemma ko, do you think it will be worth it kung makikigulo ako and risk my money if ever? 5 kaming magkakasosyo kung sakali, around P70k each ang estimate namin na capital. It may not seem like much, I know, pero for someone like me na hindi priority ang savings at puro travel budget ang inaatupag, medyo alanganin ako isugal my money.

I do want to put up a business naman but I'm not so sure kung good idea ba itong niluluto namin. I mean, I treat my friends as siblings, but I know of stories na nagkasira-sira dahil sa negosyo.

What do you guys and girls think?

[amethyst028]

^hi sis! what is the track record of your friends when it comes to money? i mean yung shell out niyo na 70k each ok ba na hindi niyo gagalawin yung kita ng coffee shop for like a year? sa business kasi return of investment usually takes 1 or 2 years. all the money earned will go back to the business hindi pwede galawin ang kita and gamitin pang personal. kasi baka ibang friends mo the business is their bread and butter mahirap iyon.

super not advisable talaga to do business with friends except of course kung may structure kayo like may mga designated position kayo na parang professional business. i've been doing business for 12years and hindi ko talaga naiisip maki sosyo sa friends ko kahit pa parang mga sisters na kame. mahirap kasi pag may money involved. nag iiba talaga ang tao pag dating sa pera. and maybe because i have seen how my friends handle their money. puro gastos walang nag iipon.

one more thing may mga friends/future partner ba kayo na successful sa business? good kung meron kung wala medyo kabahan ka kasi kung lahat kayo first timers it's like blind leading the blind. ibang iba ang mag business sa employee. it's worlds apart kaya mas ok if you partner with people na experts or may na prove na sa field na yun.

[ohcmon]

^ Hi, sis! Thanks for your response. Duly noted your inputs.

All of us are employed naman with stable income. We have no plans of tendering our resignation, bale magiging on-the-side lang naman itong coffee shop na ito. Ang balak namin magbantay is 'yung asawa ni friend A na kasosyo din namin. Itong si hubby ni friend, may small business na hindi kailangan ng masyadong supervision so we're thinking na siya muna ang mag-supervise dun sa cafe, maghahire na lang kami ng maybe 2 or 3 people to help him out, rather than hire someone else to man the business altogether.

Malinaw din naman sa amin na paiikutin namin muna 'yung pera for at least a year or two, though siguro we should really make this clear for everybody para hindi magkagulatan.

If ever sis, meron ba kaming pwedeng gawing contract etc. stating all our rights sa business if worst comes to worst (huwag naman sana)?
 

[charmed_gal]

nagawa na namin magbusiness  ng 2 ko na friend, we put up a small business nag close due to relocation nung dalawa ako na lang nandito sa metro manila....

mid 20's din kame nung nag put up kame ng business, sa tingin mo ba dedicated mga friends mo sa pag put up ng business? kase sa start up talaga mahirap, matrabaho hanap ng supplier, inventory, marketing strategy as in puyatan kami nun tapos may day job pa kame.

dumating sa point na oo may inisan na nangyare pero para maiwasan namen un nag black and white talaga kame ng responsibility ng bawat isa samen, kanya kanya talaga kame ng specialty.

masaya mag business with friends parang di mo maiisip pagod mo kase nga enjoy ka naman spending time with your friends. 

[romantico]

Having business partners whether with friends or relatives are most of the time challenging but it can be done.

I went to business with my brother, my childhood friend and his wife. Unfortunately, the partnership didn't work out and we end up selling the business. I believe if the wife isn't in the picture or if my friend is more assertive then it might have work out.

I have another friend who went to business with 2 of his childhood friends and until now their business is still very successful and their friendship is as strong as ever. They even gave us some advice on how they do it but my friend and his wife didn't take it to heart so I and my brother end up doing most of the labor intensive work.

If you plan to go into business with your friends, make sure that you are sure of it with not even a slight doubt. If you have then better not continue. If you feel that your friends are as excited as you and you think that they will be cooperative in the business then try to have everything in black and white. Do not just rely on verbal agreement especially the task and operation of the business and also the percentage that each of you is getting. Always be transparent with each other and do not try to hide something.

Lastly, if you're serious about the business then start hiring people from the get go. If it's a shop then hire someone who will be in charge then the staffs. That way, you and your friend doesn't need to do anything at hindi kayo maglalamangan sa trabaho. For the operation, pagusapan niyo ng partners on how the store is going to operate. If all of the parties agreed then you will let a manager run the operation and all of you will be on the background. Because if each of you will run the business by yourself, more chances of getting conflicts dahil iba iba style at ugali ng tao. So better hire people to do it. If during the course of the operation and you see something is wrong then discuss it with your partners and come up with a solution first before letting the manager know. Otherwise, if each of you will air their side to the employees then all of you might say things differently and the employees will get confused. So better let someone run the show for you guys.

[jtansanco]

You've got lots of pieces of advice from the posters above me. The only thing I can add at the top of my head is that if there are 5 of you starting this business, maybe have someone be the decision-maker. Let's say equal shares for each at 20% but maybe have someone be 51% in terms of decision-making or something like that. It's impossible to always be on the same page but if one of you will be the decision-maker, it will make the flow easier.

[chiqmom]

^yes, that's so true.

I had my share of putting up a business with a friend, it didnt worked out. But now, I invested again, this time, it's working.

Someone should really lead the pact. Being in a business with friends also demands constant work and understanding. Noong una, specially sa first few months namin, we almost gave up on each other. Now medyo natimpla na namin isa't isa. Yes, may mga misunderstandings pa din but we all agreed to never say or decide based on emotions. Also, may kanya kanyang role dapat para din sa accountability.

Best of all, be sure to invest on your relationship. Kami we make sure to do coffee dates monthly, not to talk about business but to talk about our lives.