Like You. Love You. Hate You. A business relationship is much different than a friendship in many ways.

Do you have a great idea for a product or service? Are
you thinking about involving someone else in that great
idea — perhaps a best friend or family member? If so,
be cautious. When you marry your friendship with a
business partnership, you need to be very cognizant of
the diverse dynamics of each type of relationship —
and outline and plan the agreement accordingly. You
should be aware of the ins and outs of what individuals
should look for, pay attention to and operate by when
it comes to saying, "I do."

by Karin K. Schaff Glazier [email protected]

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A business relationship is much different than a
friendship in many ways. Therefore, you need to outline
the techniques and approaches to working together up
front. This allows you to help avoid future conflict,
as well as avoid the risk of losing the friendship
altogether. With proactive thinking and realistic
expectations, plus a touch of complete honesty, you can
have a mutually beneficial partnership.

When entering into a business partnership with a
friend, be sure to consider the following:

100 percent honesty is the best policy. Upon entering
the business agreement, the partners need to disclose
to one another about any personal financial
requirements or limitations that exist. For example,
most startup businesses do not have enough capital to
pull wages right away, sometimes for months. Make sure
both of you are fully aware of this possibility and
will be prepared and completely agreeable to not
receiving wages until revenue begins to flow into the
business. In addition, be on the same page with how
much of that revenue gets put back into the business to
support growth.

Have a partnership agreement. No matter what you think
of your soon-to-be business partner and how much you
feel you can trust that person, it’s critical to have a
partnership agreement outlined on paper. This will
ensure that you don’t change your mind midstream on the
dos and don’ts of the business. Remember, close family
members have been known to get in bitter fights over
money and materialistic items; your partnership is no
different.

Determine your roles and responsibilities. Many times
partners’ enthusiasm, passion and personal and
professional investment get in the way of running the
business and establishing a process. A simple solution
to avoid stumbling over one another and duplicating
efforts (and avoiding power plays) is to take a sheet
of paper and list each other’s roles and
responsibilities. The list should also include your
strengths and those of the other person. This list can
help decide where you both can leverage one another’s
strengths to better the business.

Trust each other. If you start a business working from
home offices, you need to trust that your business
partner is doing everything possible to get the
business up and running — ultimately to show a revenue
stream and then, in time, a profit. You can ensure that
this issue doesn’t arise in several ways. You can set
weekly staff meetings to go over needs as well as
discuss current sales activities and projects. You can
also establish daily work hours. In addition you can
set objectives and goals to accomplish key milestones
and revisit them to determine their success rate.

No capital could mean no business growth. Even though
businesses can start up without capital, it is very
rare that those companies can grow as quickly as those
with capital. Make sure both of you are ready to put
more money into the business than you will get out
right away. In addition keep in mind that the business
can pay you back through cutting an expense check for
business-related purchases — once money is available
to do so.

Things are not always equal. Just because you are
partners doesn’t mean everything will always be equal
between you both. For example, one of you may need
health coverage while the other does not. You need to
weigh these decisions carefully to make sure both
partners are fairly supported as well as compensated.
The need for health insurance and the desire to receive
it are things that fall under the 100 percent honesty
policy mentioned earlier. Discuss these issues before
moving into business together, not after.

Partnerships can be great success stories or complete
nightmares. Remember, a partnership in business is
between people; and people have different likes,
dislikes, personalities, work ethics, expectations,
personal and professional goals, and views on what
success is. Be smart. Before you say, "I do," think it
through carefully and strategically. Then, make the
move that is best for you.

Karin K. Schaff Glazier,

Pinpoint Positioning

585.787.3164

[email protected]

http://www.pinptpositioning.com

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