When you go into business with your best friend, it seems like it should be a win-win. Here's one business's story about their partnership, the pit falls, and how they turned them into a big win.
In my experience even the best of partnerships experienced problems when the written agreement and the mental perception of the partners were not in synch.
The problems inevitably revolved around how much money each were making...or rather wanted to make...and how much time were each expected to devote to the business.
A partnership does not have to be equal prorata for each. The better ones that I have seen were given different profit percentages BECAUSE they recognized that all partners WEREN'T equal, they understood this, and they had no problem with...and it was then put in writing.
I cannot stress how important it is to PUT IT IN WRITING. Even among relatives... especially among relatives!
Great insight and advice essjay. Thanks!
On this topic I can't stress how often partnerships struggle and few have the sense and obviously strong friendship displayed in this particular article.
One of the things that can be recommended is that in a partnership there can often be a lead partner, someone who commits capital while the other person doesn't commit anything other than their time.
Just a thought, but before you start ask the person whom your working with if they don't want to take any financial risk perhaps they'd rather do a profit share agreement rather than be an owner and take the liability for the business. If they do tell them to put some skin in the game and if they can't then perhaps you shouldn't be funding your partner's job as well as your own.
A profit share can provide a great way for you both to be motivated and to push the business but not have the stress of being a co-owner.
Hope this helps and best of luck to every one reading with your business endeavours!
Til later.
The Lad.
I can't see ever going into a parternership. They rarely work out
I have personally been in 3 partnerships, all 3 were/are extrmemly successful and with close personal friends. The key for success is to have specific roles, goals for the company and what each member will be responsible for. The biggest thing to do is learn to keep business, business and friendship, frendship. If you can seperate these two things you are likely not to suceed with a partner or without. Keeping open lines of communication is essential to keeping the partnership solid and longstanding.
Even my experience with partnership is not so good! Thanks for sharing the article Host_AskAmyK! According to me if you don’t want to ruin your relationship, one should avoid partnership between friend and relatives.
Let me repeat,. partnerships rarely work out. Also, you do not want to destroy a friendship.
http://www.gobizdiscount88.com or http://www.goworldsale.com sale new Nike Sneakers,Air Jordan
Sneakers,AIR FORCE 1S,Nike Dunks SB, Bape Sta from nike Wholesale china nike
jordans gucci prada sneakers at cheap price
2012 new style all fashion show to you
2012 newest style shows on: http://www.gobizdiscount88.com or http://www.goworldsale.com , we have thousands of handbags for you to choose, lowest price but the best quality in the market, you will get what you’ve dreamed from us.
Interesting article, and I'm happy it worked out. Some partners would actually still argue about the value respective roles: ie business development is more important than finance/accounting. Great job.
