Before you call them partners | Fola Daniel Adelesi, ASM, ACL, Wcc
I have listened to some stories of terrible mistakes in business partnerships and I have seen some other enthusiasts get into business without really spelling out the details of what they were getting into with other people they call partners. They are just so excited about the idea and all they sincerely want is to get the idea off the ground and have it running as soon as possible. Unfortunately things do not work that way. You may have a sincere motive for going into a partnership deal with someone and the other person does not have the same sincere motive.
In a number of cases, it looks like the person going into the partnership with the substance and the foundation of the business (key idea) that seems to be played out or usually feels cheated. They end up saying, they hijacked or stole my idea. Friends have gone into partnerships and they have ended up becoming enemies and even families have become enemies as a result of not having partnership details spelt out so heres what I came up with:
1.Whats the purpose of the partnership? Let it be clear!
2.Whats the input of each partner in the business? Write specifically!
3.Whats the time frame for the partnership? Define it and have it written.
4.What are the limits of each partner in the business? State them.
5.What percentage of profit is each partner to get? 80:20? 70:30? 60:40? 50:50?
6.Are there penalties for defaulting so that no partner becomes non-chalant?
7.How do you want to share losses or are you sharing profits only and you bear losses?
8.Have you mode of operation written out and not just said verbally.
9.What are the financial policies for the partnerships? (pay bills before sharing profits or what?)
10.Have a document that contains all these things in details and make sure your partner signs.
11.Never breach protocols. When you do then you will water down the weight of agreements!
All of these are things you must put in place before you can call anyone your partner. If you do not have them in place then I suggest you stop calling those people your partners. Never take familiarities into the issues of business partnerships. Be patient enough to follow protocols and you will not regret following the protocols to save regrets that may come your way later.
When you get into some situations, you will be amazed at how some people will what they have vowed they will do. They will fail to keep their promises and even claim that you are the one who is not doing what you are supposed to be doing. At some other points, some people may want to hijack you idea but you would have successfully protected your idea by having the so-called partners sign a paper which will always be referred to at any point in time.
Your ideas are precious and must be protected. I would not like to see you cry over those ideas that cost you sleepless nights running into weeks. Be wise! Follow the protocols today, enjoy the harvest tomorrow.
Fola Daniel Adelesi, ASM, ACL, Wcc
+234 703 790 7851