R. Shawn McBride was recently interviewed by Tilde Guajardo on Womanars. In part 3 of that interview, Shawn talks about partnership documents.
R. Shawn McBride: Building a partnership document takes some effort. You really need to ask some hard questions of each other and really need to understand some things. One of the things that I always tell people when you’re building a partnership is you want to deal with realities of life, things that could happen. And so we always talk about the four D’s that can happen in a lifelong partnership. Those being death, disability, divorce, and disagreement. These are all very unfortunate things that can happen but realistically most partnerships at some point deal with them. Obviously, death is something that none of us can escape so we’re going to have to understand what’s going to happen if one of the partners die. And a lot of times, we get a very unexpected outcome. Children or spouses or other people in the family then step into the partnership after somebody dies or start expecting money and that can cause a lot of unfortunate consequences. So, we want to look beyond just today and the business we’re building because hopefully, we’re building and unlocking value; that is the whole key to partnerships is they typically unlock value which we wouldn’t get to otherwise.
If we didn’t bring multiple people together with different skill sets and different contact bases and different abilities, we wouldn’t be able to accomplish that wealth creation. So a good partnership is going to create wealth over time. Now we want to understand what’s going to happen with that wealth a step down the line so that’s where really good partnerships and plans separate themselves from the weaker ones is the good ones contemplate that wealth will be created and starts dealing with what’s going to happen with that wealth later down the line. So that you don’t have an issue with some family members stepping in and saying oh, give me a big pay-out now or else I’m going to you know, get in your hair about how you’re running the business.
We see a ton of things happen, we see a divorce where the ownership of a partnership interests suddenly shifts to an ex-spouse and that will completely change the dynamics within the partnership because you now have a new partner at the table with different needs and wants and skills. We plan ahead for all of this and so we really do some robust planning and that’s something we can explore later.
How do you really build good robust plans when you identify those team members that can make a huge difference and can unlock that value for you and put you to another level. So, that’s kind of an overview of what we see with business partnerships and women competing, you know.
Tilde: And thank you for all that, Shawn. Really appreciate it. I think you gave people that are just contemplating you know, going into business a lot of food for thought.
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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.