Category Archives: Partnership

Stuff Happens, Be Prepared

by Kelly Deis of SoundPoint Consulting

If you are a co-owner of a business, let’s hope that you have a buy-sell agreement in place.

Why, you ask? Well, “stuff” happens. The kind of “stuff” that triggers a buy-sell agreement generally falls into five categories, otherwise known as the four D’s and an R:

Death, Disability, Divorce, Disagreement and Retirement.

And when that “stuff” happens, something else also occurs: interests of you and your partner(s) diverge. Inevitably one (or more) owners will be buying – and one will be selling shares of the company.

The problem is that as of today, you do not know which side of the fence you will be on. Wouldn’t it be nice to have a plan in place that both parties understand, deem fair and equitable, and agree on – before either becomes the buyer or the seller?

Don’t think that “stuff” will happen to you or your partner(s)? Read on and consider the risk if you happen to be wrong.

Continue reading →

Should I take on a business partner?

Are two heads always better than one?

When it comes to taking on a partner to start or grow a small business, there’s no right or wrong answer.

Partners can complement each other’s management skills and bring benefits such as special expertise and client relationships.

As with any relationship, there are trade-offs that must be carefully considered before deciding whether adding a partner is a wise move, and then you have to find the right person for the role.

If it sounds a bit like marriage, you’re not far off. Having the right partner can be a terrific advantage for a business. Making the partnership successful takes as much energy, effort, and positive feelings for one another as it does to make a marriage work.

There are several important things to consider before choosing a partner and entering into a business partnership. Continue reading →

Should my new company have co-founders?

From the Kauffman Founders School…

Once a decision is made to found a company, one of the first and most important decisions concerns whether to “go solo” or to form a founding team. There are good reasons to form a team, but it is essential to address the question: with whom should I found? Read more.