Warning - read this before starting your own business

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Cornish Steve

Cornish Steve

Free Member
Jul 4, 2005
13,260
1,906
Atlanta, Georgia, USA (formerly Cornwall, UK)
  • #1
    I've lost count of the number of messages at these forums with titles such as "Help - business partner pulling out", "Business partner is lazy", "Business partner has double-crossed me", "Dispute with business partner", and the like. There seems to be at least one new thread per week; indeed, I spotted another one today. So, I thought I'd take the liberty to post this message for anyone looking to start their own business. If it saves just one person from a future mess, it will be worth it!

    Entering a business partnership is just like getting married. Your destiny is tied to that of your partner. There must be complete trust between you. You must be willing to trust your business, indeed your life, with that person. If you break up, expect a messy and costly situation. In that light, think carefully about the following before taking on board a partner:

    1) Only partner with people you completely trust.
    2) Only partner with people with a proven track record.
    3) Create a written legal partnership agreement in advance.

    While this may rule out some people you've considered, and while it may cost time and money to create a written agreement, it will be worth it. If you don't believe me, just search the forums for "business partner" and see how many people rue the fact they didn't do this.
     
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    Mattonella Tile Studio

  • #2
    Brilliant advice Steve. The wedding analogy sums it up as nobody expects to go into business and fall out with their partner. But like weddings there's a lot of mess with divorces, and we all know who wins there. (It's the lawyers)
     
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    Mister B

    Free Member
    Aug 31, 2007
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  • #3
    Spot on advice, as usual.

    I have had a few close friends enquiring about investing but to date, I have always politely declined their offers. I would much rather keep things on a professional level and avoid mixing business with my social life wherever possible.

    Mister B
     
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  • #9
    Cornish Steve said:
    I've lost count of the number of messages at these forums with titles such as "Help - business partner pulling out", "Business partner is lazy", "Business partner has double-crossed me", "Dispute with business partner", and the like. There seems to be at least one new thread per week; indeed, I spotted another one today. So, I thought I'd take the liberty to post this message for anyone looking to start their own business. If it saves just one person from a future mess, it will be worth it!

    Entering a business partnership is just like getting married. Your destiny is tied to that of your partner. There must be complete trust between you. You must be willing to trust your business, indeed your life, with that person. If you break up, expect a messy and costly situation. In that light, think carefully about the following before taking on board a partner:

    1) Only partner with people you completely trust.
    2) Only partner with people with a proven track record.
    3) Create a written legal partnership agreement in advance.

    While this may rule out some people you've considered, and while it may cost time and money to create a written agreement, it will be worth it. If you don't believe me, just search the forums for "business partner" and see how many people rue the fact they didn't do this.
    Click to expand...

    Good advice Steve.As someone who has several business partners the first consideration for me is whether I can trust the person.

    Very difficult to assess,but the best advice I can give is that words do not have a lot to do with the assessment.

    Earl
     
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    amyspecial

  • #11
    I agree with that. Actually when I start to do my own business, I want to do it together with one of my best friends, we surely trust each other, but after carefully thinking, we didn't do that. Sometimes business partner thing is very dangerious, even though your partner is your best friend, if something happened, it can make you and your best friend become enemy...
     
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  • #13
    It is difficult to give general 'don't do it' advice on the partner issue, without assessing your own specific situation.

    There are many people who have had bad experiences, but not all partnerships end up turning sour, providing they have been thought out in advance.

    Personally, I am not a fan of partnerships, and I do believe that people enter into them without thinking things through. Steve's post (the original thread post) should give some pointers for people considering such a move.

    There can be benefits, as sometimes having two people rather than one, you get a certain additional motivation - but the contractual obligations of both partners must be sorted well in advance - and an exit strategy.

    Good thread Steve, and some good points rasied.
     
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    Cornish Steve

    Cornish Steve

    Free Member
    Jul 4, 2005
    13,260
    1,906
    Atlanta, Georgia, USA (formerly Cornwall, UK)
  • #14
    I rely heavily on my business partner, and it's worked out really well; however, I had the opportunity to get to know her well before we started. She and I completed the same MBA program and worked together on most assignments. I got to see how committed she was to deadlines, how well she can communicate, and how much commonsense she has. In the four years since we started our venture, we've consulted on every major decision. We trust each other completely.

    For sure, I do believe in having a business partner: two threads are stronger than one, and all that. Still, it has to be the right partner, and the decision needs careful thought.
     
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