Posted by: garispang | April 17, 2009

Partnership Killers

kissing

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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