Welcome to day 80 of the 90-Day Comeback Challenge. Today we’re talking about a topic I’ve gained a lot of experience with: Business partners. Should you build a business with partners or on your own? What are critical mistakes that I would never make again? Find out about my personal experiences and advice when it comes to business partners in this article.
Why I Would Never Enter a 50/50 Partnership Again
When I started my first business, I was full of enthusiasm and drive. It seemed logical to split the responsibility evenly between two people—50/50. But what I’ve learned over the years is that this equal distribution of shares often leads to significant problems. It’s very hard to find two people with exactly the same level of commitment, reputation, and time investment in a project. In a partnership, I believe it’s crucial that one person takes clear leadership. A 51/49 split would be the minimum, but I now lean more towards a 70/30 or even 80/20 split. There needs to be one person who bears the main responsibility and makes the final decisions.
The Importance of Clear Contractual Agreements
Another major problem I encountered in my last partnership was the lack of clear contractual agreements, particularly when it came to “shotgun clauses.” These clauses are crucial when conflicts arise and need to be resolved. Unfortunately, in our case, we didn’t have these clauses contractually set, which led to unnecessary drama that escalated over months. So, if you’re starting a business with a partner, make sure all possible conflict scenarios are covered in the contract.
What You Can Learn From This
So, should you start a business alone or with a partner? My experience shows that it makes sense to have a partner because there are phases where it’s incredibly helpful to share the load. However, the division of roles must be clear, and one person needs to take the final responsibility. Also, remember to contractually cover all critical points to avoid conflicts later on.
Conclusion
I hope my experiences and insights help you in your decision on how to approach your entrepreneurial journey. Whether you start alone or with a partner, always remember that clear rules and strong leadership are essential for long-term success. I look forward to hearing your thoughts on this topic — Until then, take care and have a great weekend!
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Your Julian
Entrepreneur / Investor / Athlete / Father
