What everyone gets wrong about business partnerships
Summary
You’ve heard it before: two people go into business as friends and exit as sworn enemies. How do you make sure that never happens to you? In this episode, you’ll learn about the pros and cons of entering into a business partnership and how to avoid the mistakes that make things go sour. By the end, you’ll be able to decide if entering a business partnership is something that’s right for you.
“At the end of the day, someone is going to have to have more ownership than the other. It can’t be 50-50. Someone’s gonna need to have the final say because if not, you’re always gonna have a stalemate.”
What we discussed
- (01:04) Ep overview: Pros and cons of business partnerships
- (01:25) Entering partnerships with friends (BIG NO NO)
- (04:33) Are business partnerships worth it?
- (09:29) Downsides of business partnerships
- (13:54) How to decide if a business partnership is for you
- (15:54) Do NOT start a business partnership without THIS
- (17:19) Amazing friendships through business partnerships
3 things to remember:
- If you enter into a business partnership with your friends NEVER neglect to have a legally binding and legally sound contract looked over by an attorney detailing the exact nature of the partnership: who is responsible for what? How is the money divided? What would happen in case the partnership falls apart?
- Benefits of business partnerships include: being able to share the responsibilities of growing a business, having more than one person contributing to the financial wellness of the company, and having more diverse perspectives, knowledge bases, experiences, work ethics, and connections that the company can benefit from.
- If you are someone who does not feel comfortable sharing power, responsibility, and finances then a business partnership might not be the best choice for you.
