I have this great entrepreneur neighbor. We're sort of like peas in a pod.

He has started dozens of companies, primarily in New York. He has a great sense of humor, supplemented by a huge heart ready to share almost anything he has. He lets me swim in his new pool, relax in his lawn chairs and has even invited our overnight visitors to sleep in his house when all our bedrooms are full. A couple of months ago we were discussing the wisdom of keeping some cash at home, and he offered to let me keep my cash in his walk-in safe.

What a guy!

The only thing I can think that could ever spoil such a wonderful friendship is going into business together.

Unfortunately, that is what seems to happen to many good friends and neighbors in this state. A few years ago Utah had the reputation - unwarranted, I believe - of being the scam capital of the United States. The problem, I think, is that many people in this state confuse the characteristics of what makes a good neighbor with the talents that make for a good business partner. The fact is, they are two distinctly different sets of skills.

But let's suppose for a minute that my neighbor suggested that I invest $50,000 with him to launch a new business. Here's a list of some of the documents that I would want to review with him before I would seriously consider such a venture:

• His personal and business tax returns for the past three years. This would indicate to me his level of success as well as his disciplinein financial areas.
• The current financials on his business ventures. An income statement, balance sheet and cash flow statements would reveal his current financial status as well as future cash needs of his current businesses.

• A business plan. It should clearly define the business we would be in, who the customers would be and other vital information needed before launching a new venture.
• Full credit reports on himself, his wife and his businesses. This would indicate his personal discipline in paying his obligations.
• A harvest plan. Since it is often a lot easier to start a business than it is to get out of it successfully, I would want to know how we would get out of this proposed business that we would be starting.
• A buy/sell agreement. This would further indicate how we would unwind this venture in case of difficulties in getting along, changes in our health or even the death of one of us.
• A list with phone numbers of some of his other partners, both current and former. Also a history of his previous partnerships and how things were resolved if the businesses are no longer operating.
• Full disclosure of his side of "our" business. I would want to see a detailed listing of any money or other assets that he would invest in "our" business.
• An investment plan. I would like to see a written plan of expectations of how much time and additional money we would plan to invest in this venture.

• An organizational chart. Let's see right up front what responsibilities we would both be expected to fulfill if we both worked in the business.

That's my short list of items I would want to review before I would even seriously consider a business venture with anyone, especially a neighbor or a friend.

Oh, and there is one other thing I would want from my great neighbor: a promise that no matter how things turned out, I could still swim in his pool.

Hey, some things are worth more than money.