Any business relationship can prove difficult at times. It can become even more complex when we partner with a friend. Here are some things to think about, and discuss, before making that decision.
Do we have the same goals?
You will need to discuss both short and long term goals. What do you want to do with the business in the next year? What services/products do you want to have? How many employees will be needed? Is this business something you want to build and sell or hand down to family?
What will my friend contribute?                                                                                                            
What are their strengths? Are those the strengths that are needed for this business? You should write a job description. Include the number of work hours expected per week. If your friend cannot offer something that is needed for the company’s success you should consider other options. Partner with someone else or hire the talent you need.
Am I willing to lose the friendship?                                                                                                       
This is a difficult question. You will be with them more than your own family, day-in and day-out. This can bring out the best and worst in people. If the friendship is the priority you might reconsider.
Can I communicate with this person?    
You must be able to communicate honestly with your business partner. Can they take constructive criticism from you? Can you take it from them? Will you be able to put the success of the company first when communicating and making decisions?
What will happen if we cannot agree?                              
You will have to find a way to remain professional and do your best to honor one another even in a disagreement. Don’t make it personal.
Will we be able to keep our personal and professional lives separate?         
Establish a few rules before-hand, so you both know where you want the boundaries. Maybe you will agree to not discuss business at a family meal, and not talk about personal matters while at work.
If it doesn’t work, what will we do?                                                                                                   
Before you start, decide what the process will be if one of you wants to leave the business. Who will take the responsibilities? What will be done with their shares?
What is our Succession plan?  
This is often overlooked because it implies mortality, illness, or other unexpected changes. But this is a must. Would you start a race without knowing where the finish line was located? Even if you both live happy long lives, you will still need to think about your successors.