Chapter 2: Partnerships - The Greatest Asset Or Biggest Liability

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PARTNERSHIPS. 

In this chapter we’re going to be going over the following key items:

1. Define the roles & responsibilities of each partner.
2. Define the tasks of each role. 
3. Compensation model. 
4. Exit options.

The right partner can be an amazing asset to your self and the business, but inversely, the wrong partner can cause massive headaches, or completely crash a business before it even takes off.

Just because you’re friends with someone doesn’t mean you should be business partners. In fact, sometimes that’s the worst thing you can do to ruin the friendship. Don’t just bring people into partnership roles because you like them or it’s fun sitting around talking about doing a business together, make sure they can bring real, tangible value.

Once the business is up and running it’s a LOT of hard work every day, and those people who said they were all in for it when everything was fun, talking about ideas over beers, will very quickly change their tune once they realize there’s actual work involved. The problem is that if you listed them on the business documents as a legal partner, you can’t just tell them to kick rocks and go away once you realize they’re not a good fit. 

That’s why it’s SO important to address several key things with any potential parter prior to inking a deal with them.

When discussing partnerships, don’t make promises you don’t intend to keep. If you’re serious about starting a business, you should be equally serious about all the conversations you have about it, particularly who will own, contribute, and be involved in it.

Total guide is 7 pages long and includes a Checklist Worksheet on Page 7.