Business & Friends – A good mix?

Their husbands never thought it would last. Probably because Rachel Bell and Julia Newton saw it all as a bit of a laugh initially. Good friends and work colleagues, both decided to resign from a large PR firm, and set up their own business together 11 years ago.

“There was no grand plan at all,” insists Rachel. “We thought we’d work together for this one client we had, pay ourselves a decent salary and see what happened.” But it wasn’t long before things got serious. They found an office, set some goals and objectives, and were soon working flat out to achieve them.

“We were laughing our heads off when we first came up with our goal to be Best New Agency within three years,” laughs Julia. “Then, when we started rehearsing it for our pitches, it began sounding believable.”

Shine Communications hit their three-year goal and went on to become Best Agency within five years. Today, they’re the biggest independent agency in the UK, employ over 50 staff, turn over millions of pounds of business and were ranked 33 in The Sunday Times Best 100 Companies in March. Both of their husbands have since been replaced but the partnership between Rachel and Julia is still going strong.

There are numerous success stories of best friends taking the plunge and going into business – recent ones include Sergey Brin and Larry Page of Google, and the founders of Ben & Jerry’s. Yet there’s still an overriding sense that mixing business and friendship is a recipe for a bust up, a business meltdown or both. The reality, though, is that best friends can make great business partners - it just helps to take a few things into consideration in advance.

Have you worked together before?
Clare Rous and Kara Iland were friends and lawyers together at Clifford Chance before leaving to set up their members fashion boutique, Rous Iland, two years ago. Their previous working relationship has had a huge impact on the success of their business. “We’d seen each other in a professional environment, dealing with lots of pressure and long hours, that’s the thing that really helped us learn to respect each other,” admits Claire. “You can love your friend but you have to respect them. It sounds horrible, but one can sometimes secretly think they’re cleverer than the other. That doesn’t work. With Kara and I, we are very much equals.”

Do you have different skill sets?
At Shine, Rachel Bell has always believed in dividing up responsibilities. She became managing director early on, leading from the front, while Julia took on the day-to-day business running, which suited their skill sets. Jude Vause-Walsh and Annie Mitchell also play to their strengths in business. Best friends for 16 years, they first met while studying drama together at university. However, the separate directions they took afterward helped them in setting up The Happy Mum, their life coaching service for women, 18 months ago. Jude’s radio and TV presenting background means she’s better at talking to people, setting up meetings and giving presentations. Meanwhile, Annie, who went down the educational route, is happier organising. “She’s great at research and bringing everything together. We knew we’d choose those roles in business,” says Jude.

“We were laughing our heads off when we first came up with our goal of becoming Best New Agency. Then, when we started rehearsing it for pitches, it began sounding believable”

Have you the same vision and goals?
Nicola Hendon* thought she and her business partner, Gemma, had the same goals when they set up their advertising firm three years ago. Both were friends and had previously worked together in Switzerland – Nicola as a copywriter and Gemma as designer. When Nicola returned to the UK, they set up a business and began working remotely. As Nicola won more work, things started to change. “Business for me is all about working hard, winning clients and making it a success. For Gemma, it was a means to an end. She worked so she could live more. It came to a point where I was winning the business and waiting for her to come home to help me do the work. We just had totally different priorities and had to dissolve the business last year, despite having more work than ever before.”

Are you ready for a long-term commitment?
Unless it’s an agreed short-term arrangement, going into business with friends is a long-term commitment. Jude and Annie at The Happy Mum liken it to having a baby, with both of them parents, equally responsible for building strong foundations for the future. Rachel and Julia at Shine see it as a professional marriage. “Like any relationship, there are times when you’re more in love with each other. But underneath it all, there is respect, admiration and trust which pulls you through. I remember being hacked off at Rachel about something and then going into a pitch and thinking ‘Bloody hell, she’s good’. You just fall back in love with them all the time,” she laughs.

Do you prioritise communication?
Rous Iland experienced a setback initially when Kara returned home to Australia a couple of weeks into setting up their business. “It was the first time we hadn’t talked every day,” remembers Clare, “and I was relieved when she came back. Doubts about the business crept in more easily and it made us realise we needed to bounce off each other on a regular basis.” At Shine, there were inevitably communication break downs also. Three years into their business, Rachel says: “We felt we were in completely different places to each other. I asked a colleague who does training to facilitate a session, like a counselling session, to help us communicate and re-engage. And as soon as we realised we were trying to achieve the same thing, we stopped pushing against each other.”

Have you a legal agreement?
Men are often quick to worry about the legalities of a business partnership, women tend to be more focused on the emotional element of it. A balance is needed. As well as protection, a legal document can focus people’s mind, help them set a vision and understand what’s needed to make the business a success. Unsurprisingly, as former lawyers, Clare and Kara had a legal agreement drawn up for Rous Iland. So did Jude and Annie at The Happy Mum. “We thought about getting something off the internet for time’s sake but then decided it made good business sense to do it properly. We wanted something that protected the business in case anything happened to either of us.”

“You can love your friend but you also have to respect them. It sounds horrible, but one can sometimes secretly think they’re cleverer than the other. That’s when it won’t work”

What’s most important to you?
Everyone has a story of a friendship that broke down under the pressure of business. But it doesn’t always have to end in a bust up. After dissolving their business last year, Nicola Hendon still talks to Gemma weekly. “I decided the friendship was more important than the business, and we’ve worked to get it back on track,” she smiles. Best friends with successful business relationships should also be mindful about nurturing their friendships. At Shine, Rous Iland and The Happy Mum, all six women admit not spending enough time with their best friend outside the work environment. If your best friend suddenly becomes all about the business, then surely that’s missing the point too?

*Name has been changed

Visit www.shinecom.com , www.thehappymum.com and www.rousiland.com for more details.

By Barbara Walshe