5 Tips for Starting a Craft Business with a Friend
Starting a business with a friend sounds fun, and it definitely can be. But you need to ensure it will be the right fit before you commiting.
It’s easy to get swept up in the idea of starting a new venture together that you can ignore red flags that can cause tension and clashing during stressful times.
I can’t tell you how many crafters and business owners I’ve met along the way who formed partnerships with their friends, only to have it end badly.
I’ve worked with a few friends and although those ventures eventually ended, our friendships didn’t.
Regardless of whether you’re starting your craft business with a friend, or someone you think will be compatible, here are 5 important points to consider.
1) Choose someone with the same work ethic
Are you on the same page when it comes to getting things done? If one person is a workaholic and the other is a little more laid back, it could eventually cause tension. You may end up balancing each other out, however, try to think ahead to a stressful and busy time like preparing for a craft show.
How do you picture yourself handling the situation when you’ve just had a long day at your full-time job and you have stock to prepare? Now consider how your partner will handle it.
Do you see yourselves on the same page or will your responsibilities in the business leave you with the bulk of the work while they get to relax the night before a big show?
There will always be a bit of imbalance when it comes to workload, especially if you have different skills; the important part is making sure that it’s addressed beforehand so no one feels resentful.
2) Consider your lifestyles
You’ll also want to consider how your lifestyles may work together or clash. Are you both married with families? If you’re on the same page in that area, you’ll be a little more understanding when a child’s soccer practice causes a change in work plans. But if your business partner has kids and a full-time job and you don’t have kids and have a part-time job, you may end up taking on more of the workload.
Consider how each of your lifestyles will impact how much time and dedication you’ll have for your craft business and discuss any challenges you may face. You may want to create an agreement that offers the person who is likely to be spending more time on the business, more of the profits.
You should also take a look at each other’s work schedules and personal sleep preferences.
Meeting up to collaborate could be challenging if you work full time during the day while they have a night job that keeps them busy in the evenings. Are Saturday mornings your best time to meet? They may prefer to sleep in and work late into the night. Make sure your schedules will have some overlap so you’re not always missing each other.
3) Discuss finances
How are you going to cover business expenses? What about your expectations for getting paid? Do you both believe you should be putting profits back into the business or getting a salary?
Take the time to chat about how much your business is going to cost to start and run, and how that may interfere with your personal finances if you’re not taking out a loan. If one partner has their spouse to support them while the other is single and buying their first home, you may be relying heavily on one partner’s chequebook.
Money is never fun to talk about but it’s important to set some expectations upfront as to how bills will be split and profits will be shared, then put that agreement on paper.
4) Discuss goals and visions
Talk about your goals, not only for the business but in your personal lives as well to ensure you’re on the same page when envisioning 5 years down the road. You may want to build an empire while your partner is looking at it as a fun side project they don’t expect to expand beyond you two.
If you don’t talk about it, you won’t know and it can lead to a frustrating, or even messy situation if/when you’re ready to go your separate ways. It’s also a good idea to discuss what that will look like. If one partner is ready to close the business but the other wants to keep it going, what will be the agreement?
Be sure you’re not taking completely different paths in your personal lives either; if your partner is hoping to have kids in the next year, that will have a big impact on your business and the work they can take on.
5) Define strengths and responsibilities
It’s important that every area of your business is being addressed and it’s ideal if one person can pick of the slack where the other has weaknesses.
It can also create conflict if you’re both working on the same things at the same time.
Is one person better at social media while the other is better at admin work? If you’re both introverts who hate selling and talking about the business, you may have a few disagreements when it’s time to decide who’s interviewing with the local TV station.
Listing the areas of business that will need attention and who will take care of what ensures everything is being covered, you each get creative freedom and don’t feel like you’re stepping on each other’s toes, and you each have equal responsibilities (even if they’re not the same).
Once you consider those 5 points, and decide the partnership is a good idea, create a partnership agreement. In business, you should put everything on paper, regardless of how strong your friendship is.
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Hey, I’m Erin 🙂 I write about small business and craft show techniques I’ve learned from being a small business owner for almost 2 decades, selling at dozens of craft shows, and earning a diploma in Visual Communication Design. I hope you find my advice helpful!