Going into business with a close friend, who would have thought it would end so badly?

Many people believe that partnering with a close friend in business is a safe choice. But when profit and responsibility intertwine, friendship can sometimes be difficult to overcome.

Sharing a passion for food , in 2023, Ms. Lan Anh (Thanh Xuan, Hanoi) and a group of close friends decided to open a restaurant. They agreed on the capital contribution ratio and signed a contract clearly outlining their rights, responsibilities, and conditions for withdrawing capital.

Initially, the business went smoothly. The members discussed and divided tasks together, eagerly implementing the plan.

When difficulties arise during operations, differences in working styles begin to surface. Each person has their own perspective, and the inability to find common ground creates tension in the business. From being close friends, suspicion and arguments gradually develop within the group.

The laborer felt disadvantaged having to share profits equally with the capital contributor, while the capital contributor felt they bore a greater financial risk. When the partnership could no longer continue, Ms. Lan Anh decided to terminate the business.

Many business cooperation models have failed. Photo: Nam Phong

Similarly, Mr. Cong (Dong Da District, Hanoi ) and three friends pooled their capital to trade in imported household goods from China. The group's initial capital amounted to hundreds of millions of dong, with Mr. Cong contributing 100 million dong and the others contributing between 100 and 200 million dong.

The initial goal was to import goods for wholesale to ensure a quick return on investment. However, after the goods arrived, disagreements arose within the group. Some suggested switching to retail for higher profits, while others wanted to maintain the original wholesale model. After much discussion, they decided to try retail.

Because each member had their own job, no one had enough time or responsibility to take charge. Retail sales faced many difficulties, inventory increased, and revenue was insufficient to cover expenses. This situation intensified conflicts among the members.

When they couldn't agree on a direction, the team almost abandoned the work. Goods piled up in the warehouse, deteriorated, and lost value. The initial investment capital couldn't be recovered, and each person suffered losses of tens of millions of dong.

How can I avoid losing both a friendship and money?

According to expert Tran Khanh Minh Son, in business, cooperation with relatives or friends often begins with trust and understanding, factors that might seem like advantages.

However, due to a lack of professionalism, conflicts easily arise, especially in matters related to finance, decision-making, and profit distribution. In many cases, businesses collapse while relationships are damaged, leaving irreparable damage.

To avoid losing both relationships and money, a clear plan is needed from the very beginning. During the preparation phase, assess the compatibility of all parties involved. Carefully consider each person's skills, core values, and level of commitment. If there are significant differences in work styles or goals, careful consideration is necessary before starting any collaboration.

During the establishment phase, a legal contract is indispensable, no matter how close the parties are. The contract needs to clearly define the capital contribution ratio, roles, decision-making mechanisms, and withdrawal plans. Clearly defining responsibilities and establishing a transparent management system helps avoid overlaps and mutual suspicion.

During operations, it is essential to maintain transparent communication and professional work discipline. Regular meetings, clear financial reporting, and a "no personalization" policy help all parties focus on common goals, and a neutral advisor should be available to assist when disagreements arise.

In times of crisis, an exit plan is essential. Contracts should include termination clauses, clearly stipulating the right to repurchase shares or how assets should be fairly divided if one party wishes to withdraw. When conflicts exceed the ability to resolve themselves, mediators or neutral lawyers can be sought to protect interests and preserve the relationship.

This expert emphasized that doing business with friends can begin with trust, but for sustainability, it requires professionalism, clarity, and mutual respect. Maintaining friendships in the business world is the greatest success.

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Source: https://vietnamnet.vn/hop-tac-kinh-doanh-voi-ban-than-ai-ngo-nhan-cai-ket-dang-2453130.html