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Do You Know The Rules of The Partnership Game?

July 10, 2017 // R. Shawn McBride // No Comments »

R. Shawn McBride recently spoke about strategy for your business.

Hey, folks, it’s Shawn here, and I wanna talk about an important issue when we’re talking about business partnerships. Are you playing a game without knowing the rules? Right, we wouldn’t sit down and play Monopoly without knowing the rules, and I remember when I was a little kid, I used to go down to my friend TJ’s house and we’d play baseball. His parents’ lot was a little irregular, so we’d talk about what was in bounds, what was out of bounds, what if a ball hit here, what if it hit there, how many players were on each side. We’d really set down the rules of a baseball game before we started playing.

I’m shocked at how many people start business partnerships without sitting down to set the rules. Who’s gonna do what? How are we gonna do it? What’s gonna happen if we disagree? Who’s the umpire? These are very basic things, and while the terms are different between setting up a sandlot baseball game and determining the life and the future of your business partnership, certainly the stakes are usually much higher when we’re talking about a business partnership. Outside of a major league baseball game or something else, you know, the dollars at stake in a sandlot baseball game are nothing. The dollars at stake in your partnership can be huge, and you wanna make sure you have rules.

We all wanna be working together on the same team. We’re all in this together, and we need to understand the ground rules, and if we understand what each of us are gonna do, how we’re gonna do it, how we’re gonna get paid, how all that’s gonna happen, that’s gonna get us a lot of ways down the road. But then we also need to be realistic. There’s gonna be unusual things that are gonna happen that we don’t anticipate. People are going to get upset. Life is going to change, values are gonna change, partnerships will come and go. One partnership is gonna sell a business when an acquisition offer comes, and another partnership’s gonna stay.

What are the rules? This is your buy-seller agreement. This is your partnership agreement. These are where we document this. It’s very easy to update that when things are going smoothly, when we’re starting a business, when we’re growing the business, when we’re all in agreement, we can sit down very inexpensively, reach an agreement, document it, understand where we’re at, and have rules if the game starts to change, but if we don’t take the time to set the rules, then we’ve got a problem.

So, what have you done to set the rules? Do your rules need to be updated? Do you have rules from an old game when your business was much smaller and your partnership agreement was different? Let’s take a look at it. Let’s update those rules. Let’s think about it.

Now, if you’re looking for guidance on kind of the issues that come up in business and how to set these rules, check out my blog. A lot of great content there, stuff you can look at, and reach out to me, or send me an email. Let me know what you’re facing. Let’s chat, let’s get to know each other. Let’s see what we can do, and I can come in, and I can either work with you one-on-one, I can work for your groups and organizations, or somebody can bring me in to speak to large organizations to get these issues on the table. But let’s get these issues on the table and let’s fix them and let’s get ahead before we even have a problem.

Reach out to me, I’m looking forward to talking to you soon. Wanna help you and your business get to the next level. Shawn McBride signing off.

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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer John Siebert.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

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Posted In: Business, Strategy



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