Thread: Partnerships

Like anything, it takes practice.

I have had some down right terrible partnership. and some Totally awesome ones as well. alot of my Joint ventures and partnerships have made me alot of money.

its a process in learning how to do them right. thats all.
congrats on your first lesson!

dont stop now!

Originally Posted by zendolphin

Like anything, it takes practice.

its a process in learning how to do them right. thats all.

I learned to not do free work, set clear boundaries and expectations at the beginning, and not be intimidated and/or in awe of someones celebrity status

now that's an awesome lesson!

clear roles and responsibilities, and be your own man!
recognize the value you bring to the table, and understand the strategic value a celebrity status may bring, but don't buy into the hype.

good start

I am recently going through a "divorce" of a partnership. Roles were not clearly defined from the beginning, and there was a lack of trust on my end. My advice is get your roles and responsibilities in writing before starting the partnership, don't just jump in because it seems like the right thing to do. This could be a relationship lasting years and you have to deal with this person on a regular basis. You also have to trust this person, if there is no trust is the partnership, it will not work. Trust is the most important building block in my opinion. I may have to walk away from a company iv'e built over 4 years just because I did not take care of these things from the start, but I see it as a great lesson and I know what it takes now.

Getting a statement of work, or at least some framework agreed on early on would be ideal. I kept working but we never agreed on payment after I sent at least three proposals. He said I was 'aggressive' and 'unhealthy' when I asked for payment, which made me even more confused because that was false, I think he just said that to throw me off and divert from the fact he would/could not pay.

Yep I am a firm believer that partnerships sucks because we typcially get in them for the wrong reasons.

I have had two horrible experiences and I learned a lot from it.

I put it this way. Both partners have to be equally important to the business. If I own 50 percent of the business then I better bring 50 percent worth to the table, whether it be money, skills or experience.

Well it depends! In real business it self is a total risk either it is started with someone in partnership or you are alone.

Originally Posted by puckman

I learned to not do free work, set clear boundaries and expectations at the beginning, and not be intimidated and/or in awe of someones celebrity status

Agreed. Free work = bad idea.

I have lost a lot of money with a 'partnership' in the past. I also learnt to not have partners, if someone is worth having, hire them as an employee otherwise you will most likely have problems. I've been more successful without partners.

Originally Posted by puckman

or if you actually start the business with a close friend/partner, etc.

Careful with that one too. I would not go into business with someone just because "we are cool" or because "we are bros". I always look at partnerships as objective as possible. Why the hell do I need you? What do you bring to the table? The other problem with friends is that you tend to "groupthink" which destroys critical thinking. Most people out there are wannabe know it all Entrepreneurs, and for that reason it takes a lot of thinking before you jump into bed with someone. Because I guarantee you there will be times where the partners will wanna argue or fight. I rather have 100% ownership then hire managers. But if i run into someone that has all the traits of of a REAL Entrepreneur and has skills and traits that can help the business, then i'm all in. But watch out with partnerships, be VERY careful, don't be afraid to tell your wantrepreneur friends NO like I told my friends to.

Business is Business Nothing personal as the saying goes. Its not all sunshine and rainbows. In a partnership I want someone who is SMART, Disciplined, Unique, determined and is able to "see around the corner". Not some dumbass wantrepreneur who reads the millionaire fastlane book and afterwards thinks the market needs another T shirt and jean company like my friends. Some people will NEVER be good entrepreneurs no matter how many kick ass entrepreneur books they read like TMF. IMO

Puckman,

Originally Posted by puckman

I am not interested. Just learned the hard way, and spent four months, hundreds of hours and thankfully only a few thousand bucks chasing one that seemed to good to be true. I think you will only be successful if you depend on your self, or if you actually start the business with a close friend/partner, etc.

Like most of the other guys on here, I think you can do partnership if you do them right and with the right people.

My first partnerships were with close friends. Big mistake. When business and personal get mixed, unless everyone's on the same page, you're in for some gigantic headaches. My other two partners warred in one business; one dropped out and stopped contributing, and the other made off with all the money I'd take out big loans to give the business. One of these friends became a bitter enemy (the one who ran off with my cash), and the other became someone I lost a lot of respect for (the one who failed to contribute to the business).

I have a new business I've launched with a partner who's PURELY a business partner, and I've only partnered with because she complements my skills. I'm big-picture oriented, she's detail oriented, things like that. Also, she's just as committed to the business as I am - maybe more so, even - and that's a breath of fresh air compared to my previous partners.

A lot of pulling off partnerships successfully seems to be about:

• Finding partners who'll be committed (not focusing on a day job / other projects)
• Finding partners who complement your own strengths and weaknesses
• Learning how to lead and get other partners executing and doing things for the business

I learned you need to manage partners the same as you manage employees. I take a list into meetings now and jot down my assignments and go through what a partner can do and get those jotted down too.

Make sure you have a contract and keep as much of the leverage (finances, corporate affairs, contracts, managing core business functions) in your corner as possible in case you have a partner who stars fading out. You should be able to apply pressure to non-performing partners to step up or step out.

Ideally, partners provide a boost, not a drain - they can do the things you can't, pick you up when you're dragging, and help keep the business on course. Most big businesses that I've seen at least started out as partnerships, and there's a good reason for that.

Chase

Originally Posted by Chase

I've only partnered with because she complements my skills. I'm big-picture oriented, she's detail oriented, things like that.

Contrary to popular belief, partnering just because you have complimentary skills is usually a pretty horrible decision.

Originally Posted by socaldude

Business is Business Nothing personal as the saying goes. Its not all sunshine and rainbows. In a partnership I want someone who is SMART, Disciplined, Unique, determined and is able to "see around the corner". Not some dumbass wantrepreneur who reads the millionaire fastlane book and afterwards thinks the market needs another T shirt and jean company like my friends. Some people will NEVER be good entrepreneurs no matter how many kick ass entrepreneur books they read like TMF. IMO

I agree with this, and have never had a partner in any of my businesses. I would consider myself to be a wantaprenuer, as I have a full time job, but have earned over $250K in the last few years running small businesses I create based on my skill set in my spare time. I attempted a partnership for the first time, and it didn't work this time. In the past, frankly my clients were 'partners', and I have approached every client relationship as a partnership. When I say "close friend/partner" I really should have said somebody I know and TRUST. The guy I attempted to partner with is a semi-celebrity in his own little community, revered, but when I pulled back the covers, it was a house of cards, i.e. he spent every dollar he earned and literrally had no money, coincidentally appearing to live large in north San Diego. I invested a ton of time and some small money upfront, and I got burned. I would recommend anyone starting out to have clear boundaries, and offer a sample in the beginning, and if its not reciprocal or they are not interested, cut bait quickly.

Originally Posted by puckman

coincidentally appearing to live large in north San Diego.

Hmmm another sidewalker in La Jolla driving an entry level german automobile?

I'm looking for a partnership. I know I said I didn't but I think its necessary. You have to find people who complement your skills and someone you trust. Otherwise why do I need you? Over at Y combinator they said that almost ALL of their successful start ups were partnerships. The key is to go into business with the right people(smart, honest, disciplined) for the right reasons(complementary skills, NOT because "we are bros or we are cool and get along well".