Partnership Killers
photo credit: WTL photos
In theory, a partnership, especially with a friend, is a great way to start in business. Unfortunately, it rarely works out right. Here are some partnership killers:
- Sharing your capital instead of expenses. Work out a plan where the costs and expenses are shared rather than all of your money and resources.
- Not having a written and signed partnership agreement. Make sure this is one of the first thing’s you work out.
- Not having an exit strategy. Make sure you set up and define the terms where either yourself or your partner can walk away from the partnership.
- Thinking the friendship will outlast the end of the partnership. Just like a marriage that break’s up, most do not remain friend’s afterwards.
- Having a 50/50 partnership. This does not work because every business needs a BOSS. So have a 60/40 or 70/30 partnership.
Is there anything you can add to partnership mistakes?
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