Is Entering a Business Partnership Similar to Entering a Marriage?
Absolutely, deciding to go into business with a partner is very similar to entering a marriage. You and your partners will spend significant amounts of time together, you’ll make difficult decisions together, and your financial life will be intermingled and affected based on your decisions. Before you decide to enter a partnership, you should consider the pros and cons of doing so. In a marriage, we want everything to work out according to plan; but in case things go south some couples choose to have a prenuptial agreement drawn up. Similarly, we also want the business plan and partnership to work out. In the event unfortunate circumstances arise, partners should have a partnership agreement in place. Let’s discuss a few thought provoking questions pertaining to partnership so you can determine if it is the right structure for you.
How should I consider a partnership?
Consider your partnership as a marriage. Go in with good habits and clear communication. Communication is crucial in ensuring solid understanding of the business’s priorities, goals, challenges, and purpose. You also want to go in with the end in mind. Make sure all issues and problems are resolved before the partners leave the partnership. When ending a business, the next steps usually include paying off liabilities from the partnership, the final distribution of profits from the partnership, filing a final tax return for the partnership and submitting other required documents to the state.
What should I have in writing?
The bottom line is that you should always have a written partnership agreement that clearly states how the partners can come and go. This should include the question of who the partners are, who owns what and what happens if they decide to leave the partnership or enter into a new one, as well as other issues. If you have dreamed of starting a business, don’t assume that it will run smoothly just because you know each other. Simply put, DOCUMENTATION BEATS CONVERSATION!
What if my partner is my best friend or family member?
Air on the side of caution. Going into business with friends or family can be the best decision or the worst. When working with family and friends, it’s more likely that business decisions and outcomes will be taken personal. A failed business partnership with your sibling or best friend can cause collateral damage to your personal relationship. In this particular business arrangement, you will need to produce a legal document, known as a partnership agreement, on how decisions are made and disputes resolved, and what happens if one of the partners wants to leave the business.
What are some Issue?
- Lack of commitment or unequal commitment from the partners. This can cause a lot of friction within a partnership. It’s important to lay out expectations and the roles of each partner.
- Differing ways of approaching business. It can be really difficult to function within a partnership if (1) one is risk adverse while the other is willing to take risks, (2) both you and your partner are control-freaks, (3) one of has perseverance but the other backs down when a challenge presents itself. These are just a few things that should be considered before entering a partnership.
- Another issue is financial strain. There will be periods of time when the business is not experiencing consistent revenue, or even experiences a decline in revenue. Just like in a marriage, financial troubles can pose a huge strain to your business relationship. Business planning and transparent conversations are vital in order to prevent or address financial issues.
As a coach how do you help business owner?
I love this question and always ask “ Did Michael Jordan need a Coach, and if yes, why? As an employee you have rules and policies that govern many of your actions as an employee performing for a company. You can’t just show up when you want and conduct business when you please. But as an entrepreneur your drive will determine much of your getting up, your performance and your going to sleep. As a coach, I only work with those GameChangers that want to really make a difference in their business and community. So I help them get crystal clear on what that looks like and work with them to create a strategic plan. Strategy is a golden process driven method vs tactics which can be trendy. But a combination of both will help to establish a winning plan for the entrepreneur. Secondly, I perform as an accountability coach to help ensure those time sensitive task that are all part of the winning success strategy. And just like MJ practiced, I help ensure we create measures for success and that you are meeting those numbers.
What have you found to be the biggest challenges?
The majority of first-time entrepreneurs are scared. They need a support system to help them navigate the nuances and noise of entrepreneurship. This noise can be in the battle of their own mind. Dealing with past failures or noise from close family or friends who talk them down form jumping into business. Often times new entrepreneurs are seeking opinions from friend that have never owned a business but just because they are a friend, they seem to trust whatever the opinion. This is mistake #1. As a business coach, working with Gamechangers that allow excuses to get in the way and then expect others to empathize with them on the excuses. Working for yourself take drive and discipline. When you are at home as many, employee just found out with the pandemic, your family will think you are doing absolutely nothing. You will let others agenda become your priority and this is what takes GameChangers off on another tangent. That’s where I come in to help you stay focused. Just to have this accountability partner can mean the difference in succeeding now to years later if at all. For the more seasoned Gamechangers, I support them in scaling to 7 figures so they can stop running in the business being the “Chief Everything Officer ” and be the real CEO in their empire. Scaling to 7 figures changes the way you operate. This system of change is not only what my team and I show seasoned owners but new entrepreneurs too. Start the way you want to finish. Processes to start, operate and close a business are all topics that we cover in the beginning to ensure a clear map on their pathway to success.
What are the top qualities of a Entrepreneur?
I would say the dream, desire, design. Gamechangers are full of dreams and ideas for the next best … You name it. Their hunger and desire is what will move mountains for them and get them through the underground connection to the resources they need. The design part is the strategy. Gamechangers need that someone skilled enough (someone who is just a step beyond them) who they trust that can take them to the next level. This is often easier said than done. The hard part is finding that trusted source that is willing to share are the correct information. Just because a pathway work for the trusted source does not mean it will work for the GameChanger. Just trusting your dream with another can be scary and that when someone like Atty. Garner can be retained to help them safeguard that journey to freedom.
How about funding?
Funding is the #1 resource issue. Being connected to the ‘underground’ is key. Being connected helps you to get to the right somebody that can get you to the right somebody. Connection is simple your underground. Your connection if tight will get you to any resource you need. I support masterminds and private communities that openly share this information in order to help others. Joining a community of like minded GameChangers where you give more than you take makes a huge difference in your journey. These resources are local operations like BOI , SBA, Score, The Indy Black Chamber or internet Facebook groups. You must know how to show up for them and be open to receive. optional content: SORAYA & SOROYA ARE THE CONDUCTORS TO HELP LEAD YOU ON YOUR SUCCESS JOURNEY. THEY CAN HELP YOU IDENTIFY YOUR GIFTS AND CREATE A WORKABLE SUCCESS STRATEGY . THEY SAY THAT WORKING WITH DECISION MAKERS IS HALF THE BATTLE BECAUSE THEY ARE THE ONE-STOP, AND DON’T HAVE TO GO BACK AND CHECK, CHECK, DOUBLE-CHECK AND ASK PERMISSION TO PROCEED IN THEIR NEXT STEPS. BEING ABLE TO MAKE A DECISION RIGHT ON THE SPOT, MUCH LIKE THE SHOW, SHARK-TANK PROVES TO THEM THAT A PERSON IS READY TO MOVE FORWARD AND ARE SERIOUS ABOUT THEIR BUSINESS.
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