• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Close Friend wants a PARTNERSHIP!? Good or Bad Idea?

Discussion in 'General Entrepreneur Discussion' started by Will-v-the-World, Jul 13, 2018.

  1. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    I desperately need everyones opinions on 50/50 partnerships.

    Me and my close friend @harp1600 have been planning on doing a 50/50 business partnership every since we became interested in entrepreneurship. (We became interested about 9 months ago, but I knew I had a ton of learning to do before pursuing anything real.)

    After gaining a very solid fundamental fastlane mindset from reading a lot, I found a business idea that satisfies the CENTS commandments.(I found it about 2 weeks ago.)

    I originally planned to include my friend in this business and us share a 50/50 partnership. However, my friend just recently realized how powerful the Fastlane is and he has just now began his search of knowledge for his mindset.

    That means that I am currently very far ahead of him in terms of mindset and knowledge.

    Here’s the thing: I think I might be crippling both of us if I allow this partnership to happen, because a lot of the Fastlane lessons I learned were learned because I had to find the business idea on my own. I couldn’t have found the idea unless I had the proper Fastlane mindset. On the other hand, its possibly crippling me because I will have to teach him everything and he has no value to add (yet).

    Of course, he’s totally against us splitting up but here is my idea that i think might be better: We both go on our own ventures but we are still going to be using each other to keep us accountable and push each other. I think this will be better for both of us, but what do you guys think? I am open to any other opinions that you guys have about this.
     
    StevieB, sparechange and harp1600 like this.
  2. msufan
    Offline

    msufan Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    119
    Likes Received:
    246
    Joined:
    Mar 13, 2013
    Rep Bank:
    $1,255
    If you aren't comfortable partnering with your friend, and if your friend isn't bringing something absolutely crucial to the table, I agree that you'd be best off on your own.
     
  3. sparechange
    Offline

    sparechange Gold Contributor Speedway Pass

    Messages:
    1,098
    Likes Received:
    1,177
    Joined:
    Nov 11, 2016
    Gender:
    Male
    Location:
    Canada (Vancouver/Calgary)
    Rep Bank:
    $3,396
    stay away from partner ships at all costs.

    do absolutely everything 100% ON YOUR OWN.

    when you are struggling to manage everything (marketing, sales, customer service) and money is rolling in HIRE people that are *smarter* than you, pay them well.

    50/50 partnerships are the dumbest thing ever, unless you are working with someone like Mark Cuban or a mega millionaire that will make you successful literally overnight.

    read the book of Felix Dennis, he talks about 100% ownership for a chapter
     
    E-Sharp, Longinus, masterneme and 3 others like this.
  4. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    Sounds like good logic to me, thx for the replies. So you’re saying that even if you were partnering with a “technical” guy to do things like coding, modeling, etc. it’s a bad idea? Or you would simply not do 50/50 with them?

    Anyone else have opposing opinions? Right now I’m going off of this, going to make the decision by tomorrow afternoon.
     
    harp1600 likes this.
  5. sparechange
    Offline

    sparechange Gold Contributor Speedway Pass

    Messages:
    1,098
    Likes Received:
    1,177
    Joined:
    Nov 11, 2016
    Gender:
    Male
    Location:
    Canada (Vancouver/Calgary)
    Rep Bank:
    $3,396
    if you need help with technical work, hire someone.

    paying a worker a few hundred bucks (or few thousand dollars) is a much better deal than giving away 50% equity.

    lets say you make 1m, do you really want to give away 500k?

    think big here.

    you could also check out fiver, upwork etc and pay someone in asia to develop/code software for you
     
    Will-v-the-World likes this.
  6. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    Absolutely, I agree. Do you see any benefit whatsoever in a 50/50 split? Anywhere I can find a quick overview of that book chapter? Or should I get the whole book?
     
    sparechange likes this.
  7. sparechange
    Offline

    sparechange Gold Contributor Speedway Pass

    Messages:
    1,098
    Likes Received:
    1,177
    Joined:
    Nov 11, 2016
    Gender:
    Male
    Location:
    Canada (Vancouver/Calgary)
    Rep Bank:
    $3,396
    from the book ''how to get rich by Felix Dennis''

    one of the best books (TMF & this one are the best books on entrepreneurship)

    dont take it from me, but from a self made billionaire...

    == OWNERSHIP! OWNERSHIP! OWNERSHIP!

    We pretend that mere names can own things. But what is a partnership, a corporation, or a country, but a name?

    It's easy to be philsophical when you've already amassed a fortune. There's some truth in that, but there's also truth in the assertion that I may well have only been able to put a few hundred million dollars in the bank because I recognized that this getting rich malarkey is just a game. Being rich is fine, and at very least is better than being poor. But it shouldn't be the be-all end-all of your life or anyone's life.

    If you can laugh in the midst of early poverty and in the face of real adversity, and if you can still laugh while you're coining it in, then you will almost certainly continue to coin it in.

    To become rich, you must be an owner, and you must try to own it all. You must strive with every fiber of your being, while recognizing the idiocy of your behavior. To own and retain control of as near to 100% of any company as you can.

    Never never never hand over a single share of anything you've created or acquired, if you can help it. Nothing. Not one share, to no one, no matter what the reason, unless you genuinely have to.

    Ownership is the only thing that counts.

    Why doth treason never prosper? For shouldest thou fail, thou must hang. And if it doth succeed, why 'twas never treason!

    Never retreat. Never explain. Get it done and let them howl.

    The partnership held, and has always reflected two principles as far as sharing the pie : (1) who is putting what capital into a venture? (2) who is putting what work on that venture?

    That's the best part of a true partnership: you always have a brother to help carry the load, and if things go wrong, you have a built-in drinking buddy with whom to drown your sorrows.

    Despite our close friendship and real affection for each other, this knowledge that any one of us could walk away from the others if he wished, that illusion of freedom made it possible to compromise with each other when things got tough in our partnership business. If our partnership had been the only hope I had of making any real money, it might have disintegrated before it began. A partnership is not a marriage. In a marriage you should be willing to die or kill or share everything. In a partnership, money comes first.

    Establish yourself first, retaining as much control of any startup or acquisition as you can. Only then, seek pastures new with partners in the picture.

    Ownership buys you the luxury of time. Not only the luxury of occasionally considering a partnership or an investment elsewhere.

    Ownership means never having to waste time saying sorry that a business didn't work out. It means not having to spend weeks and weeks trying to persuade your partners that a certain course of action is necessary. It means that you can concentrate on building the business and making money - or losing it without the added burden of guilt.

    Time is the only thing we cannot replace, apart from our health and our lives. I resent wasting a moment of it.
     
  8. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    This is gold, I don’t quite understand all of it but I think I’ve just made my decision on yes/no for the partnership.
     
  9. Mattie
    Offline

    Mattie Platinum Contributor Speedway Pass

    Messages:
    2,645
    Likes Received:
    3,478
    Joined:
    May 28, 2014
    Gender:
    Female
    Location:
    Up in the Clouds
    Rep Bank:
    $27,157
    I think this is what we all ask in business.

    This determines the age of both of you. But you can settle this as learning the same thing at the same time by sharing the same resources, so you're growing together, discussing the courses, webinars, books, whatever together. This is how you stay in balance. If you look at a business, they have training with their employees at the same time, so everyone is on the same page, have discussions about it, hear the feedback, can adapt, adjust, problem shoot, and grow. If he's on mindset, share the same resources you've learned from. Just because he is behind on a few steps, might not mean he's not a fast learner or catch up fairly quickly.

    Communication is the whole key. Make a list with him on what things he needs to work on. You make your list what you need to work on. Share it with each other. How can you help each other in those areas to reach the goal in the long-term picture for both of you to be successful. What needs to be done. What are the weekly goals, monthly goals, yearly goals. What is the schedule? What are the deadlines? This is all stuff you will have to learn with any partner. Working together as a team versus by yourself. What responsibilities do you have? What ones does he have? Are you both being clear in communication? Or are you just assuming the other person knows without speaking up?

    This also determines whether he's serious about the situation, will he go the extra mile, if he's dedicated, devoted, showing he's doing what he can to be in the same place. If he's just saying a lot of words, and no action of education, or trying to keep up with you, than I would go the other way, but if he is just a few steps behind, take your team mate with you.
     
    harp1600 and Will-v-the-World like this.
  10. masterneme
    Offline

    masterneme Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    264
    Likes Received:
    617
    Joined:
    Apr 13, 2015
    Gender:
    Male
    Rep Bank:
    $3,942
    Each one build your own business, you'll keep 100% control and can improve your friendship with your sharing of experiences and support.
     
    Will-v-the-World likes this.
  11. ApparentHorizon
    Offline

    ApparentHorizon Gold Contributor Speedway Pass

    Messages:
    697
    Likes Received:
    2,011
    Joined:
    Apr 1, 2016
    Location:
    Greenville, SC
    Rep Bank:
    $7,286
    The best way I've heard it is, "A business partnership has to be better than a marriage."

    You both have to be crystal clear and on the same page, at all steps of the process. And then you have to give each other room to work, and trust in your partner's abilities. Abilities which should compliment yours (Coder vs marketer)

    To top that off, it's not usually a 50/50 partnership even if it says so on the paper. Someone is leading the grand vision.

    Anything that may seem small now, that you'll "work out as you come to it" can be disastrous.

    Imagine 2 lines that are off by only a couple of degrees, starting close to each other. Draw them out long enough, and they are worlds apart.

    Here's the catch though. While this forum is generally against partnerships, from past threads I've seen, places like YCombinator don't even look at you without a partner. (Even the dropbox guy had to go back and get one)

    Google, MS, Ben & Gerry's, HP, Apple, and many others had co-founders.

    I work with businesses of all sizes, so there's always an opportunity for a partnership.

    If there's potential, I'll do a JV first to see if we can at least collaborate. If it works, and it's not their first business, we discuss doing more.

    Even then, I just recently cancelled a partnership after lining up funding and suppliers, b/c the other person's actions weren't lining up with their words. They were a client first, and all seemed well for a year. Then I guess when they thought they had it in the bag, they grew tired of putting up a facade, and became sloppy.

    Q:
    1. Why does it have to be a 50/50 split?
    2. Can he do something you can't?
    - You can easily pay someone to fill in the gaps, but that's taking resources away from another area you can grow. (Funds for marketing)

    Last point, and perhaps I'm reading this wrong, but text can only convey so much...

    You're publicly stating you're better than your friend, and you're looking for validation from strangers online to confirm it.

    There was a thread around here about upper class etiquette, and I don't think they mentioned this...

    But one thing you never do is talk bad/down to anyone close to you. Partners, clients, business acquaintances, and especially friends, and especially in public.

    This was probably not your intent, but take a moment to reflect on your original post.

    Good Luck
     
  12. Waspy
    Offline

    Waspy Float like a butterfly Read Millionaire Fastlane Speedway Pass

    Messages:
    480
    Likes Received:
    2,098
    Joined:
    Dec 6, 2016
    Gender:
    Male
    Location:
    U.K.
    Rep Bank:
    $7,527
    Partner up when a partnership is required. Such as when you both bring equal value to the table.

    By the sounds of things you only partnering because the other party is a friend. Which is a terrible reason to partner up.

    Since it’s your idea, you will bring 80% of the passion, complete 80% of the work and get paid 50% of the profits. What an aweful deal.
     
    sparechange and Will-v-the-World like this.
  13. scottmsul
    Offline

    scottmsul Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    49
    Likes Received:
    167
    Joined:
    Apr 29, 2017
    Gender:
    Male
    Location:
    Boulder, CO
    Rep Bank:
    $1,026
    Sounds like you already answered your own question.
     
  14. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    Well, he is dedicated, but the thing is, I think a lot of the learning process revolves around step 1; finding the business idea. So if he doesn’t have to do that for himself, I feel like he will never truly have the mindset. I could be wrong about this though. What’s your opinion on this?
    Thank you for the reply.
    Me and my partner have great communication, however there is nothing he can do that I can’t do, and vice versa. We are basically both the same person right now, neither of us have any real skill other than being very determined to do what it takes to build a biz.
    1. I guess it doesn’t have to be a 50/50 split, but I imagined that if we were partners we would both have equal ownership since we are both identical in skills and work ethic. (not many skills, tons of work ethic.)
    2. He cant do anything I can’t right now, but that’s not to say he won’t learn when things get more complex down the road. Like I could focus on one task while he focuses on another.

    Wasn’t trying t make it sound as if I am better than him or anything, I was just saying that I am a few steps ahead of him at the moment and we both have the same sets of skills right now.
     
    ApparentHorizon likes this.
  15. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    We were going to partner up because we thought having 2 owners would mean 2x more efficiency.
    Well, I am still wondering if there are advantages of the partnership.
     
  16. ApparentHorizon
    Offline

    ApparentHorizon Gold Contributor Speedway Pass

    Messages:
    697
    Likes Received:
    2,011
    Joined:
    Apr 1, 2016
    Location:
    Greenville, SC
    Rep Bank:
    $7,286
    In that case I wouldn't partner up.

    Here's a though, build complimentary businesses. IE, niche down one level in separate areas.

    One can do AdWords, and the other Email marketing (or whatever field you guys are exploring). Similar customer base, and you can help each other, while not stepping on toes.

    Then you take commissions for jobs done. He introduces you to a new client, you give him X% and vice versa.
     
    Will-v-the-World likes this.
  17. Will-v-the-World
    Offline

    Will-v-the-World Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    64
    Likes Received:
    120
    Joined:
    May 10, 2018
    Gender:
    Male
    Location:
    US
    Rep Bank:
    $1,257
    Hmm, that’s a pretty good idea. I’ll get him to look into that. So if I’m developing a physical product, he could be a manufacturer (Or something along those lines)?
     
    ApparentHorizon likes this.
  18. LittleWolfie
    Offline

    LittleWolfie Bronze Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    563
    Likes Received:
    321
    Joined:
    Jun 28, 2018
    Location:
    Holbeach Hurn
    Rep Bank:
    $520
    Didn't Drew hire the other guy though and that plus investors is why he has nearly three times the shareholding od his employee cofounder?

    The Atlassian guy I believe said he used credit cards to find his sales, then hired his cto-co-founder as an employee.and gave him small salary plus 10%

    YC might not take any one man bands, but that's not the same thing(and if your going in to YC your already giving equity away. I bet a few of you guys have companies that have employees.
     

Share This Page