SHOULD YOU INVEST IN A FRIEND’S BUSINESS?
Ben & Jerry’s was started by childhood best
friends. Four grad school buddies founded Warby
Parker. A long friendship-turned-partnership
brought Clear to TSA security lines across the U.S.
A shopping trip between two pals launched size-
inclusive clothing brand Universal Standard.
Yes, stories of successful business partnerships
between friends exist. But for every Ben and Jerry,
there are countless Janes and Joes ticked off at
their college roommate for stiffing them on a
business loan.
Mixing business and friendship can tank a
relationship. So, if a classmate, colleague or
childhood friend asks you to invest in their
business, you need to look at it from all angles.