Big mistake. Huge mistake. It’s amazing how quickly people can forget their agreement. Sooner or later arguing can happen over decision making, for an example. The one doing the work will want to make the main decisions because he’s the one doing the work. The one putting up the finances will also think that he should be making the main decisions because the business was funded by him.
That arguing will continue and turn to terrible fighting, and because nothing was written down at the beginning, neither side has anything to stand on. Everything should have been written down legally at the beginning. But even then, fighting can still happen. Because of this fighting, the business will suffer and can eventually fail and both friends lose out.
They lose their business, their reputation, money and friendship. These best friends can become enemies. These kinds of things have actually happened in real life situations. Why risk a good friendship? Better to borrow from a financial institution than to risk your friendship. This is just one possible scenario.
Thank you for reading today, there is more to come on this important topic. Have a great day and God bless!
Ilona and Steve.
© 2019 Steve McLeod.