R. Shawn McBride recently spoke about setting up a good partnership agreement, early on.
Hey, folks, it’s Shawn with you. And I want to talk to you about something that is very important for most businesses. It’s setting up a good partnership agreement. If you have more than one partner involved, you need a good partnership agreement and it starts with building a foundation. Foundation of trust, but also a foundation of understanding.
What we find is a lot of times partners don’t have a foundation of understanding. They are going different directions, they have different thoughts and ideas about the business. We want to get things in writing. Before you even talk to a lawyer – because a lawyer’s probably a necessary part of forming a good partnership agreement that’s solid and legally enforceable. Before we even get to that point, let’s have a meeting, let’s have the partners get together, let’s have a clear understanding of what each thinks the other’s going to do and how the business is going to progress. You do this, I do that, this is how we divide the profits and economics, this is what’s going to happen if we deal with one of the four Ds. Death, disability, divorce, disagreement. We need to have a plan for each of the four Ds built in early. So we wanna know where we’re going. Once we have that, we have the foundation.
Now we go to the lawyer and we really document it. We make sure we say this is what we’re trying to do, let’s pool all the pieces together and really make it work. These are important agreements and you know they sit on the sidelines for a long time until there’s a problem.
Unfortunately, most of my clients are the people that have seen somebody gets burned or have done this before. A lot of the people that haven’t been burned before don’t go out and proactively deal with this. The people that get it, get it. They see how bad it can be if a partnership falls apart. Partnerships are great, you can unlock tons of economic value. We have lots of huge organization in the economy that were founded on partnerships. There’s nothing wrong with partnerships. They have to have that clear understanding of foundation. If they don’t, you can knock the whole organization apart. We really want to get these things done right. Go out, build a foundation, have an understanding, go to your lawyer, get it documented the right way, build it the right way first.
The McBride for Business YouTube channel also has a lot of great information and the R. Shawn McBride public page on Facebook is a community with lots of videos and content to help business owners. Trying to help people get this stuff right from the beginning and wanting to avoid issues before they happen. So check us out. Get your business evaluation checklist and let me know how I can help you. Reach out with your questions, let me know what I can do for you. Let me know if your organization needs coaching, consulting, a speaker, or training. I would love to dive into these issues and get them right from the beginning rather than deal with them on the back end. Save a lot of money, do great things. R. 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 Bob Smith.
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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