Lots of individuals believe that having a business partner will take the weight off their shoulders or that the business will be more successful but, is that the actuality? Not only do people believe that having a business partner is good thing but, some think that making their friend, family member, or spouse their business partner will make owning a business an even greater experience. This can be true. According to Joachim Schwass, a Director at the Lausanne-based International Institute for Management Development (IMD), he states that “numerous studies that show family-controlled and quoted companies create more wealth and outperform public corporations on many metrics including total returns and cash flow,” (cited from ‘The Balance’).
On the other hand John Van Reenen, a unit director at the London School of Economics, has the belief that “family-controlled corporations seriously lack meritocracy in that the choice of chief executives and key leaders is usually limited to family members,” (Balance,year). According to ‘The Balance’, almost 70% of business partnerships fail.
Mixing business with personal relationships can have its pros and cons. Terrence Tomlin, co-founder of ‘The Bigs,’ an independent sports media company, says that he has only experienced the pros of conducting business with his business partner who is his friend. Tomlin stated, “It has been the best business as well as personal decision I have made on this journey.” Tomlin advises those who plan on mixing business with family and friends to have strong communication and have a very strong bond.
Mixing business with personal is beneficial as long as the individuals have great communication, a strong bond, similar vision, and know how to separate business from personal life. Jordan Lewis, a young Chicago DJ, gave his perspective on the cons of mixing business with pleasure, “The cons of having a business partner that is your friend is not being able to turn off “friendship’ and focus on business or turn off ‘business’ and be friends.” Mixing your business life with your personal life can have both its pros and cons. On one hand, it can be horrific experience for the two causing them to end not only a business, but a good relationship. On the other hand, it can turn out to be a wonderful experience for the two individuals, allowing them to grow and create a bond stronger than they had before. The key is having good communication and an open mind.