I get regularly asked what my thoughts are about partnerships. Over the past 36 years, I have had many partners, some good, some not so good. To be totally honest, I would attribute more than 50% of my stress to the partnership arrangement.
When first starting out, it looks exciting, fun, and adventuresome and it can be, but there are also numerous considerations.
I want to bring to your attention a few very important considerations to implement into your current partnership or to strongly consider when forming your next partnership. These are a few things I have come to find important over the years.
1. Make certain your goals for the business are the same.
2. Have a written "Operating Agreement" outlining your specific responsibilities.
3. Make sure you have "Key Man" life insurance on each other. You do not want to be in business with your partner's family, in case of their untimely passing.
4. Clearly define an exit strategy for either partner. Have a written plan.
5. Have a mediation process in place just in case you meet a crossroad that finds you gridlocked.
6. I would encourage you to consider age differences. Age has a way of naturally making you think differently. There is wisdom in age, but, as the gap becomes wider, so there will also be a difference in opinion.
7. When family members of either partner start to work in the business, you just pitched a gallon of gas on the fire. Be very careful!
8. You had better like and agree with the mate of your partner; you just went in business with them as well. Your partner "will not" go with you, if their mate disagrees. There is never two votes; always four, if you are married.
9. Have a great understanding about the responsibilities of each partner as it relates to hours worked, vacation, and monetary disbursements.
10. If you get nothing else from this Top 10 list, get this: Have everything in writing and put it in a binder or minutes book signed each month by both partners.
I would urge you to sit down and make your own checklist. Be intentional about answering questions truthfully when deciding on a partnership.
If you have specific questions about existing or future partnerships, feel free to email me your questions at aaron@viewfromthetop.com.
Please take the time to plan well and think through every possible situation. It's all how you plan!
A good partnership can be grand, and a bad one can be
"fifty grand."
Live on purpose,
Aaron
