Real Business

Hosting a Real Business event this week, fierce debate arose about the pros and cons of working with friends. One entrepreneur, with a cool new brand in the drinks trade, was on the brink of teaming up with friends to take the business to the next level. In return for a slice of equity, would this be the right step?

So what's your view?

Some amazing businesses have been built by groups of buddies. In the UK, the best recent example is Innocent Drinks, led from start-up to extremely healthy valuation and sale to Coca-Cola by old uni mates Richard Reed, Adam Balon and Jon Wright. While they must have had their ding-dongs, the trio appeared throughout the Innocent journey to enjoy one another's company. It's a compelling case for working with friends in business.

"Friends will come cheaper," says Jim Harlow, CEO of logistics business QLog. "They'll believe in you, and be prepared to compromise as you grow the business. Non-friends will probably ask for higher salaries."

And, of course, many family businesses thrive, brought together - rather than ripped apart - by the bonds of blood and loyalty.

But while there are pros, there are also serious cons.

Phil Burgin, CEO of the Maria Malaband residential care home group, is adamant: "Never employ a friend," he insists. Business is business. Hard decisions must be taken at times. Don't let them be blurred by the conflicting loyalties of friendship.

Stuart Evans, co-founder of Plastic Logic and CEO of cement innovator Novacem, says: "there is a 25 to 50 per cent chance that you'll fall out with friends in business." So the question you should ask: are you prepared to take the risk?

So, working with friends, is it:

• The best way to ensure consistent culture and build a business while having fun?
• Or recipe for shattered dreams and disaster?

We want your views.