There are many moving parts when starting a business but there’s even more when there is more than one partner. Learn how to avoid some of the pitfalls when creating a partnership in business by asking a few questions of yourself and your partner(s).
Video Transcription
Sunshine: Are you thinking about opening a business with a partner?
Crystal: Welcome to The Love of Business. I’m Crystal.
Sunshine: And I’m sunshine. Let’s get to it.
Business partnerships. This sounds scary, a little bit dangerous. Why would you want to split up all the cash?
Crystal: Yup, that’s very relevant. And this is a big decision to bring on or work with a business partnership. It’s like a marriage, most of them do not last.
Sunshine: What do you think the span, you know, because marriage usually ends in divorce, right, 50% of the time? Maybe it’s higher, I don’t know.
Crystal: Usually about the three year, five year mark, you know if it’s going to work or not.
Sunshine: So, you got to wait that long before you know if your partnership usually in the business is going to work.
Crystal: Usually.
Sunshine: So, how do we avoid that? I mean, it sounds like it’s going to come down to decision making. I mean, how can you split it up? You know, if it’s two people, or even if it’s three, a third, a third, a third, I don’t understand how we can avoid this partnership.
Crystal: Yep. So, let’s talk about ways to avoid a bad partnership and getting divorced from your partner.
Sunshine: Sounds good.
Crystal: Three easy tips to make sure your business partnership is successful. Number one, make sure your business partner is complementary to your strengths and weaknesses. Meaning if you have a weakness, they should have that as a strength.
Number two, make sure you’re doing weekly partnership meetings, so you’re fully aligned, so there’s no guesswork.
And number three, you can split the money and responsibilities 50/50 if it’s two people, but someone always needs to be the final decision maker. So you guys don’t get stuck and can keep growing. So, you have to choose that person and if there’s a stalemate between you, the final decision maker that partner gets to say what happens next.
Sunshine: Whoa, that’s a revelation. So, you can split the money 50/50. You can split all the duties 50/50.
Crystal: Right.
Sunshine: But you need a final decision maker.
Crystal: That’s right.
Sunshine: That sounds, is it a coin toss? How do you figure that out? I guess that’s something for you to figure out.
Crystal: Yeah, with your partner.
Sunshine: What’s your number one takeaway from today’s video? I know what mine is. Leave us a comment and thanks for watching.
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