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5 Ways of How to Destroy a Business Partnership: Don’t Start That New Business Until You Read This
Let any of these 5 situations into your business and you will devastate your business career:
1. – Stop needing each other:
There is a good chance that the power and responsibility structure of the partnership will begin to shift and look very different 3 to 12 months after formation.
At the beginning of every new venture, dynamic and impressive new business phenomenon, made up of fear, anxiety, stress and excitement, arises and creates an impressive disintegrator of personal barriers. No facades and no charades are the hallmarks of the new business. Partners forget their own needs and are on their best behavior. Everyone is madly “loved”.
“We need each other” is a compelling source of energy in successful business partnerships. In most partnerships, the “need” is the bond that holds it all together. Especially as time goes on after In the 12th month of business, everything and everyone begins to shift, evolve, and a shift is created that will be unsettling and transformative for the business and all players.
See #4 for more on “not needing each other”
Solution: Accept the fact that the above information is valid. Discuss this openly with your business partners. Be alert and sensitive to your business partners and what they say and do and how they say and do it. You can not be “sensitive and sensitive person.” Think selfishly. Think about protecting your future. Think about future-proofing your business. Communication, open and civil, is the only preventative measure that will increase the chance of a favorable outcome.
2. – Allow your significant other to point out all the expensive gifts your partner’s significant other receives that are not:
Significant others and other family members can be a source of great pain and anxiety when it comes to the relationship you have with your business partner.
Greed, jealousy, over-criticism, general resentment, tactlessness and superficiality are some of the flies that bathe in the ointment of a business partnership. Money and power sometimes bring out the worst in “significant others” and family.
Solution: The solution has two parts:
AND-He is a shrewd businessman who pays close attention to the health and tone of his business partnership. It should be the number one concern that trumps all others in your life. I know I get a lot of banging and hissing, but if you take care of your business and business partnerships, it will always take care of you and the people you love and who love you. Everyone will be happy and satisfied.
b- Going to or inviting a counselor or therapist to a private meeting with business partners once a month, individually and collectively, will always be money well spent. I have seen the wreckage that family members have created in some very successful businesses.
You will have partner disputes and disagreements. Bet on it. Prepare for it now and have preventative and support assets ready and/or in play from the start. It will be a shame if one day you stand outside your office with a padlock and wonder what happened.
3. – Having sexual relations with a family member of your business partner:
I can already “feel” the smiles. Talk about destruction. This is an insidious act of extreme treason. Not only will it leave your business torn apart, but it will destroy precious family and personal relationships. People will be crushed and devastated throughout their lives.
The reputation of all partners will be tarnished. You will be amazed and horrified at the same time how many suppliers, banks and customers will turn their backs on you. They know that in a polluted and tainted situation like this, destruction and failure can be close at hand. No one wants to be a part of that, especially if it hurts them financially. Many people take for granted that it takes years to build a reputation that is respected and trusted. Takes 24 hours or less to blow up.
Are you going to make your bed and lie down in it or not?
Solution: If you’re over 18, guess wildly. Under 18? Talk to someone over 18.
4. – Talk to yourself about how you deserve more money than your business partner:
“I work a lot harder than she does. “She was supposed to be the sales end of our business, but…” “Our biggest customer can’t stand her.” “He can’t handle the pressure. “I never realized how much he talks. I have to go on? You may know one of them.
He is at the beginning of a new business “reality” and there it is “wishing and well-intentioned thinking.” The responsibilities and strengths that you bring to a new venture are not necessarily the responsibilities and strengths that will be in play when things start and continue.
Being aware of each partner’s strengths and “vulnerabilities” will make the weekly partner meetings productive and allow everyone to be open, honest and transparent. Staying flexible and being willing to adapt not only leads to a sustainable business, but more interestingly, it leads to personal growth for all partners.
Solution: The solution has 3 parts.
AND-Order, enforce and re-enforce close and personal, respectful and empathetic communication sessions at least once a week. These meetings are limited to partners only and take place behind locked and closed doors. Bring food. Do not go to speak in a public place.
b- There are always 3 realities: Yours, theirs and the business reality. Work only with the reality of business and adapt your life to the needs of business. I repeat, make your business a priority above all others and “the others” will have a phenomenal life.
C- Accept as a fact that over time you may need to change your place and responsibilities in the business. Welcome it with open arms. If you have a problem with this, I say respectfully, see a therapist ASAP. Your reluctance has to do with ego, self-image, and self-confidence. It pays to have someone to help you untangle your emotions and subsequently save your business career.
5. – Start a new business on a 50/50 ownership platform:
If you are forced to enter into an equal equity partnership, then patience, empathy and anger management, or learning their patience, empathy and anger management, becomes even more important and necessary than ever before. 50/50 is fine until the “cracks” start to appear. If you don’t follow the advice in step #4, this could be the beginning of the end for everyone.
Some interesting points:
AND-When a partnership dissolves, your net worth is never, I repeat, never what you think it is. It’s always much less.
b-Banks, customers, suppliers and even employees scatter when they get a whiff of bad news on the horizon. Your net worth can be completely gone by the time you say “Wait, I changed my mind.”
C-Make your partnership agreement as simple as possible (two pages is good) or you’ll find the lawyers making more money than you.
d-You can get 51/49% stock ownership with a 50/50% profit split. It’s worth giving up more in profit sharing to get 51% ownership of the company. In any case, no matter what you decide, it is always wise to keep salaries, expenses and benefits the same.
Solution: See the solution in step #4
“Now go with your eyes wide open”… Good luck out there.
Personal note:
I will be accused of being negative and short sighted. My answer: That’s bullshit. This is reality. That’s life. it’s raw clean, close and certainly personal.
Don’t like the article? I understand. Truth and reality will make people uncomfortable.
Do me one favor. Print it out and put it in a drawer in a sealed envelope. Open it 12 months from the day you started your business. If I was right, you have unfortunately learned a valuable lesson, and if your verdict is that I was wrong, please take a closer look and look for cracks in the partnership. You may be in a “soft phase”.
Partnerships are great when they are strong and built on mutual respect. Unfortunately, it’s not a perfect world. This article is about the options you need to be aware of and tune into. Consider this article a practice “fire drill”. Adapt now, because by the time the flames start shooting, it’s too late.
This article is about covering your business relationship with empathy. It’s about knowing that you are not only responsible for your well-being and performance, but also for the condition of your business partners. I’m not advocating that you become a super parent. I am interceding for you and this article is all about your protection and your financial and mental well being.
Once again. Good luck out there and never give up on your dreams.
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