Never feel that an expert employee friend would be an asset for success. Nothing should be taken for granted in this changing environment. An employee friend sits on rich assets, has no qualms over budgets, hence, might be successful as an employee. However, an entrepreneur is one who would be running on stringent budgets to succeed, needs strategies. Trial and error method works by innovating and not by squandering money.
Cash strapped organizations could do 360 degrees integration in the infrastructure commitments. On the other hand, an upcoming start up might not be able to even stand upright if the whole assumption goes erstwhile. Hence, caution is the watchword not to be carried away by false projections while imaginative expectations needs to be assessed judiciously.
Many start ups wish to rope in their friends as their rapport thrives since years, though it is quite encouraging trends, yet needs some caution. Think twice before aligning with others, as most partnerships fail in the initial stage due to ego clashes. If the friends cross this hurdle then there is no looking back.
Emphasizing my point, I would like to quote a recent story about a chain of clinical labs that had a similar hitch. The XYZ labs were on rigorous expansions plans. Prakash (names changed) wanted to start a lab and sought the advice of his friend who held a prominent post in the chain group of labs. Instantly Vinay who was one of the heads of the clinical labs, encouraged Prakash to take up his branch in Coimbatore.
Another bonus was that Vinay offered Prakash that he would invest in the new venture. Both the friends invested in the venture. Vinay had the knowledge but did not have time to concentrate, while Prakash had all the time but no exposure in the field. What happened in the end is quite imaginable both of them lost their money and the most important was their friendship too. Sad ending, yet an educative lesson to all new entrepreneurs.
The morale of the tale is that: 1) Never think that your expert friend will be of good help to you. 2) Never tread into area that you are unaware of. 3) Business flourish mostly because of expertise and not by investments. 4) Sit down and talk to your prospective partners briefly before getting into the venture. 5) Do not be carried away by your friend’s expertise as it might not even earn you a penny. Beware…do think and then decide for making your venture successful. Rajkishan